Buying Guide Details

Buying Property on the Costa Blanca

Where to buy property on the Costa Blanca

Property owners living on the Costa Blanca enjoy some 320 days of sunshine per year on average. High-density development around the likes of Benidorm and Torrevieja since the 1960s has given way to high-quality, luxury homes with more of a flavour of ‘the real Spain’ about them.

Golf is a big draw and the region is blessed with a number of fine courses. The area around San Miguel de Salinas at the south of the coast (Vega Baja) has some much sought-after courses, and there are some high-quality golf developments to the north of the region (Marina Alta) around Denia and Javea.

The region is not all about golf, though. The ‘White Coast’ stretches from Murcia in the south to Gandia in the north. Along with its glorious Blue Flag beaches there’s also a mountainous hinterland to explore and several protected park areas. Many of the newer property developments are much more sympathetic to the natural beauty and culture of the area than the projects of yesteryear.

There’s already a large British expat community in the area. The region is easy to get to and transfer times from the airport to the resorts are not long. Amenities and infrastructure are good and well-established in this part of Spain. All of these factors, along with that glorious climate, go to explain the region’s continued popularity as a holiday home and retirement hotspot.

View property for sale on the Costa Blanca

The Process of Buying Property on the Costa Blanca

Anyone wishing to buy (or sell) a property on the Costa Blanca must first obtain from the state – in person – a fiscal number for foreigners known as NIE (numero de identificacion de extranjeros)
Once the property buyer has received the NIE number, the buyer’s lawyers can make an offer on their behalf. When a price has been agreed, it is recommended that both parties sign a preliminary agreement which outlines details such as the completion date
A deposit of 10% is the normal amount placed to secure the deal. After this, if the property buyer pulls out they lose the full deposit but, should the seller decide not to go ahead, he/she must return double the amount of the deposit – i.e. 20% – to the property buyer
If buying property on the Costa Blanca off-plan, it is usual for payments to be broken into stages, the balance being paid when construction finishes
On completion, when all the necessary checks have been carried out, both parties sign the escritura (title deeds) in the presence of a notary. The buyer then pays the balance, plus all other fees and taxes. Copies of the deeds are sent to the Land Registry and the tax office.

Homes Overseas Property Club

Homes Overseas has joined forces with a collection of IFA specialists to form the Homes Overseas Property Club (HOPC), designed for existing and prospective overseas property homeowners.

The Club – which has access to international lawyers in no fewer than 43 different countries - has been set up in order to guide people through some of the various issues relating to buying and maintaining a property overseas. It offers advice on a range of topics, including financial, legal, insurance, taxation, property management and foreign currency matters.

For further information please telephone 0845 838 7142 or email info@homesoverseaspropertyclub.com

Fees & Taxes

Taxes and fees usually amount to around 10% of the total purchase price of the property on the Costa Blanca
Taxes payable depend on whether the property on the Costa Blanca being purchased is new-build or resale. Currently, transfer tax of around 7% is applied on resales, which includes stamp duty. For new-build properties, VAT (IVA) of 7% is payable in addition to 1% stamp duty
On top of this there is also plusvalia (capital gains tax), which is set by the local authorities and depends on the area concerned and the amount of profit being made on the sale. This is usually paid by the seller
If the property buyer is purchasing land or commercial property rather than residential, VAT is 16% as opposed to 7%. Stamp duty remains the same
Most Spanish lawyers charge around 1% of the final purchase price, and notary fees are around 0.5%
Agents’ fees can vary anywhere between 2% and 15% – so be careful not to be ripped off