You have located your dream villa or apartment on the Costa Blanca. The agreed purchase price fits your budget. However, buying property in Spain involves significantly higher closing costs and transfer taxes than in the UK, Ireland, or Scandinavia.
In the province of Alicante (Valencian Community), buyers must budget between 12% and 14% on top of the agreed purchase price. In this guide, we break down every tax, legal fee, and notary charge so you can plan your purchase with complete clarity.
Always budget an additional 13% in liquid capital above the property price. If applying for a Spanish mortgage, Spanish lenders typically advance up to 70% of the property's valuation for non-residents. The remaining 30% deposit plus all buying costs must be funded from your own resources.
1. Resale vs. New Build: The Tax Split
Taxes make up the bulk of closing costs. The taxes you pay depend on whether you are acquiring a pre-owned property (resale) or a brand-new home directly from a developer:
| Tax Type | Resale Property | New Build (Off-Plan/New) |
|---|---|---|
| Property Transfer Tax (ITP) | 9% (from 1 June 2026 under Ley 5/2025; 10% prior to 1 June 2026) | N/A |
| VAT (IVA) | N/A | 10% |
| Stamp Duty (AJD) | N/A | 1.5% (in Valencian Community) |
| Total Purchase Tax: | 9% (previously 10%) | 11.5% |
Effective from 1 June 2026 under Ley 5/2025, the statutory transfer tax (ITP) in the Valencian Community has been permanently reduced from 10% to 9% for properties priced up to €1,000,000. Applicability depends strictly on the date of signing the public deed (escritura pública) at the notary, saving buyers €1,000 per €100,000 of purchase price!
2. Additional Mandatory Purchase Costs
Alongside government taxes, several independent professionals are required to complete the legal conveyancing and registration of title:
A. Spanish Notary Fees (€800 – €1,200)
Notary tariffs are fixed by statutory law and depend on the sale price and the complexity of the title deed (escritura de compraventa). The notary acts on behalf of the Spanish state to witness the deed signing, but does not conduct independent planning or debt searches for the buyer!
B. Land Registry Fees (Registro de la Propiedad) (€400 – €750)
After signing at the notary, the title deed is officially registered in the local Land Registry to grant you unassailable legal ownership.
C. Independent Legal Representation (€1,500 – €3,000 / ca. 1%)
In Spain, retaining an independent lawyer (abogado) or licensed conveyancer is essential. In Spanish law, debts follow the property, not the person! If the previous owner left unpaid community fees, unpaid municipal taxes (IBI), or illegal unpermitted extensions, you inherit those liabilities upon completion.
Your lawyer must verify the Nota Simple (title land registry extract), confirm the Licencia de Primera Ocupación (habitation certificate), and confirm no planning enforcement orders exist against the property.
D. Administrative Formalities: NIE Numbers & Banking (€150 – €300)
Foreign buyers must obtain a Spanish foreigner's identity and tax number (see our complete guide on how to get an NIE number in Spain). You also need a local Spanish bank account to issue the guaranteed banker's draft (cheque bancario) presented at completion. House in Spain can manage the entire NIE application process for you.
3. Practical Calculation Example
Suppose you purchase a resale villa in Rojales, Ciudad Quesada, or Orihuela Costa for €250,000 completed after 1 June 2026:
- Purchase price: €250,000
- Property Transfer Tax (9% ITP): €22,500 (vs. €25,000 prior to 1 June 2026 — saving €2,500!)
- Notary fees: ca. €950
- Land Registry registration: ca. €600
- Independent legal conveyancing: ca. €2,500
- NIE numbers and bank fees: ca. €250
- Utility connection / change of name: ca. €350
- Total capital required: ca. €277,150 (only ca. 10.8% extra instead of 11.9%)
Calculate Your Buying Costs Online
Use our interactive calculator to compute your exact taxes (ITP/IVA), notary, registry, and legal fees for resale or new-build properties.
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4. Money-Saving Tip: Check the Cadastral Reference Value
Under Spanish tax rules, the tax agency uses a statutory reference value (valor de referencia). If you buy a property for €200,000, but the official reference value is €220,000, the 10% ITP is calculated on the higher figure! Have your property advisor verify this value before committing.