Legal and Tax Guide for International Buyers in Orihuela Costa

Buying a property on the Costa Blanca—especially in sought-after areas like Orihuela Costa—is an exciting and significant decision. For international buyers, the process may seem complex due to legal and tax differences. At Ibero Homes, we’ve prepared this clear and concise guide to help you buy with confidence and peace of mind.

1. What Do You Need to Buy Property in Spain?

Get a NIE (Foreigner Identification Number)

The NIE is a personal and unique number required for all foreign buyers to legally purchase property in Spain. It can be obtained through the Spanish police or via Spanish consulates abroad.

Official info: Government site – NIE application

Open a Spanish Bank Account

This is essential for managing payments such as taxes, utilities, and property-related transactions. Most banks offer special accounts for non-residents.

2. Taxes and Fees Associated with Buying

Resale Properties

• Transfer Tax (ITP): Varies depending on the region. In the Valencian Community, it’s typically 10% of the purchase price.
• Notary and Land Registry Fees: Roughly between 1% and 2%.

New-Build Properties

• VAT (IVA): 10%.
• Stamp Duty (AJD): Usually 1.5% of the official property price.

3. Additional Costs to Consider

• Legal Fees: Hiring an independent lawyer is strongly recommended. Legal fees usually range between 1% and 1.5% of the purchase price.
• Property Appraisal: Required if you’re applying for a mortgage (approx. €300–€500).
• Certified Translations if you’re not fluent in Spanish.

4. Financing: Can Non-Residents Get a Mortgage in Spain?

Yes. Many Spanish banks offer mortgages for non-residents, although they usually finance up to 70% of the purchase price. Be sure to compare terms and interest rates.

5. Legal Security: How to Avoid Surprises

Before signing anything, it’s crucial to:

• Verify the property’s registry status.
• Ensure it’s free of debt or legal encumbrances.
• Confirm that it has all the necessary urban planning permissions.

At Ibero Homes, we only work with vetted properties and offer legal assistance throughout the purchase process.

6. Post-Sale Advice

After your purchase, you’ll need to:

• Set up utility bills (water, electricity, community fees).
• File annual taxes like the Non-Resident Income Tax.
• Take out home insurance.

We have a network of trusted partners to assist you every step of the way—even after the sale.

Thinking of Buying in Orihuela Costa?

At Ibero Homes, we offer a wide selection of properties and fully personalized assistance. Whether you’re looking for a holiday home or an investment opportunity, we’ll guide you through the entire process for a secure and smooth transaction.