Buying Guide Details

Buying Property on the Costa Azahar

Where to buy property on the Costa Azahar

Properties on the Costa Azahar (or ‘Costa del Azahar’) are cheaper than those on coastal rivals the Costa del Sol and the Costa Blanca by some 20% to 30%. Investors might be interested in the expected surge of demand with the arrival of the new airport at Castellon which will make getting to the region much easier and quicker.

This coast is popular with overseas property buyers for its golf, water sports, fishing and wildlife. The ‘Orange Blossom Coast’ runs from Gandia in the south to Vinaros in the north, with a number of excellent resorts, such as Peñiscola, with its mix of sandy beaches and coves, along its length and the exciting city of Valencia at its centre.

This coast has a very temperate climate but benefits from being, at present, far less crowded than the more developed costas. That said, the resort of Benicassim has been a favourite with Spanish tourists for decades and has, for the last few years, hosted a massive summer music festival, when the town is swamped by visiting fans enjoying top-class acts as well as miles of Blue Flag beaches – Glastonbury without the mud!

There are some schools with a UK-based curriculum, notably at Castellon and Puçol, which may interest a property buyer looking to relocate with a young family, though it’s an area where at least a rudimentary knowledge of Spain will be necessary for those emigrating. Even as a holiday destination, you will not find the widespread use of English that one might find in some of the better known Spanish coastal resorts.

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The Process of Buying Property on the Costa Azahar

Anyone wishing to buy (or sell) a property on the Costa Azahar 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 property 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 buyer
If buying a property on the Costa Azahar 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 Azahar
Taxes payable depend on whether the property on the Costa Azahar 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 on the Costa Azahar rather than residential property on the Costa Azahar, 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

Getting there

For the southern Costa Azahar, Alicante is served by almost every low-cost airline from many regional airports in the UK year-round. Further north, use Valencia or Reus (Salou) airports – both have limited direct flights from the UK. A new airport at Castellon is under construction.

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