All the Costs You Need to Know When Buying a Property on the Costa Blanca

Buying a home on the Costa Blanca is exciting, but it’s crucial to understand all associated costs. Here’s a complete guide to help you plan your investment.

1. Taxes Related to the Purchase

a. Transfer Tax (ITP) or VAT

• Second-hand properties: 10% Transfer Tax.

• New builds: 10% VAT and Stamp Duty (AJD). which varies between 0.5% and 1.5%, depending on the location and the type of property. Learn more in our tax guide.

b. Local Taxes: Property Tax (IBI) and Garbage Tax

• Once you are the owner, you must pay the Property Tax (IBI) annually. The amount varies depending on the municipality and the property's cadastral valuation.

• There is also an annual rubbish collection fee, which can range from €40 to €150 per year.

Check details about these recurring costs in our dedicated section.

2. Notary and Land Registry Fees

These fees depend on the property price. 

• Signing the deed at the notary's office can cost between €600 and €1,000.

• Registering the property in the Property Registry costs approximately between €400 and €700.

For specifics, visit our buying process guide.

3. Management Fees and Mortgage Expenses

Hiring legal managers and obtaining a mortgage can incur additional costs.

If you decide to hire a property management company to process the legal and tax documentation, you should expect an additional cost of between €300 and €600. This may include the payment of taxes and registration in the Registry.

If you need to finance your purchase, there are costs associated with the mortgage loan:

• Property appraisal: Mandatory for the bank to value the property. Its price is usually between €250 and €600.

• Opening commission: Some banks apply this commission, which can range from 0% to 1% of the loan requested.

• Home insurance: Many mortgages require you to take out insurance to protect the property. Its cost varies, but can be around €200 and €400 per year.

Reach out for personalized estimates via our assistance page.

4. Home maintenance costs

Once you have your home, there are recurring costs that you must take into account:

• Community of owners: If the property is part of a residential complex, you will have to pay monthly or annual fees. These vary from €40 to €200 per month, depending on the services (swimming pool, gardens, security, etc.).

• Basic supplies: Water, electricity, gas and internet, whose costs can add up to between €100 and €250 per month, depending on consumption.

5. Other Important Costs

a. Legal Assistance

A specialized lawyer is highly recommended. Discover our trusted network of legal experts.

b. Moving and Maintenance

Explore local services and options for planning your move in our services section.

Conclusion

Understanding these costs will help you plan better. Explore our available properties or contact us for personalized advice.