Buying property in Costa Blanca in 2026 is possible for both EU and non-EU buyers, but the process involves several legal, tax and administrative steps that should be understood before paying a deposit.
International buyers will normally need an NIE (Número de Identidad de Extranjero), should carry out legal due diligence on the property, understand the reservation or private purchase contract, calculate the applicable taxes and complete the purchase before a Spanish notary.
For resale properties in the Valencian Community, the general Property Transfer Tax (ITP) rate is 9% from 1 June 2026, while a general rate of 11% applies when the taxable value exceeds €1 million. New-build homes are generally subject to 10% VAT (IVA), plus the applicable Stamp Duty (AJD).
This guide explains the process for international buyers considering property in Torrevieja, Orihuela Costa, La Mata, Guardamar del Segura and other areas of the southern Costa Blanca.
Can Foreigners Buy Property in Costa Blanca?
Yes. Foreign buyers can purchase property in Spain whether they are residents or non-residents.
You do not normally need to become a Spanish resident before buying a home. However, you will usually need an NIE, which is the identification number used by foreigners for legal, tax and financial transactions in Spain.
The buying process is fundamentally similar for Spanish and international buyers, although foreign purchasers may need additional documentation for banking, anti-money-laundering checks and proof of the origin of funds.
A Special Note for Some Non-EU Buyers
Certain areas of Spain are subject to rules relating to zones of interest for national defence.
This can be relevant in parts of Alicante province. Depending on the buyer's nationality, the exact location of the property and the classification of the land, some non-EU buyers may need additional checks or, in specific circumstances, military authorisation.
This is particularly important to verify before signing a binding contract or paying a substantial deposit.
An independent lawyer or notary can confirm whether this requirement affects a specific property.
The Property Buying Process in Costa Blanca
Although every transaction is different, a typical purchase involves the following stages.
1. Define Your Budget and Property Requirements
Before starting viewings, calculate the total amount you are prepared to invest, not only the advertised property price.
Your budget should also take into account:
- Purchase taxes
- Notary and Land Registry expenses
- Legal fees
- Mortgage-related costs if financing is required
- Property valuation if required by a bank
- Renovation or furnishing costs where applicable
- Community fees and annual property taxes after completion
Knowing the complete budget from the beginning makes the property search considerably more efficient.
2. Obtain an NIE
The NIE, or Número de Identidad de Extranjero, is the identification number assigned to foreigners who have economic, professional or social interests in Spain.
International buyers normally need an NIE to complete a property purchase and handle the related tax and administrative procedures.
It is advisable to start the NIE process early rather than waiting until a property has already been reserved.
3. Search for the Right Property
Costa Blanca has a large and fragmented real estate market.
A property may be represented by one agency while another agency introduces the buyer. For international purchasers, working with a buyer-focused property professional can make it easier to compare properties from different agencies instead of limiting the search to one company's portfolio.
Before making an offer, consider not only the property itself but also:
- Location
- Orientation
- Community costs
- Property condition
- Distance to services and beaches
- Parking
- Accessibility
- Rental potential, if relevant
- Future maintenance costs
If the property is being purchased as an investment or for short-term rental, current local and regional rental rules should also be checked before committing to the purchase.
4. Make an Offer and Negotiate
Once you have identified the right property, an offer can be submitted to the seller.
Negotiation may involve more than the purchase price. Depending on the transaction, it can also cover:
- Furniture
- Completion date
- Included equipment
- Existing repairs
- Payment timetable
- Conditions linked to financing or legal checks
Any important condition agreed during negotiations should ultimately be reflected in the relevant written contract.
Reservation Contracts and Deposits
After an offer is accepted, the buyer may be asked to sign a reservation agreement and pay a deposit to remove the property temporarily from the market.
A later private purchase or "arras" contract may also be used before completion.
These documents can create significant legal and financial obligations.
The consequences of withdrawing from a transaction depend on the exact wording and type of contract, so international buyers should avoid assuming that every deposit is automatically refundable.
Ideally, the contract should be reviewed by an independent legal professional before money is transferred.
Legal Due Diligence Before Buying
Legal due diligence is one of the most important parts of buying property in Spain.
Before completion, the buyer or their legal representative should verify the legal status of the property and confirm that what is being purchased corresponds with the official documentation.
Depending on the property, checks may include:
- Identity and ownership of the seller
- Land Registry information
- Mortgages, embargoes or other registered charges
- Outstanding community fees
- Local property tax (IBI)
- Cadastral information
- Urban planning status
- Building or occupancy documentation where applicable
- Discrepancies between the physical property, Cadastre and Land Registry
- Existing tenancy or occupancy situations
- Outstanding community assessments or major planned works
A Nota Simple from the Spanish Land Registry is an important starting point, but it should not necessarily be the only legal check performed.
The Role of the Spanish Notary
The final purchase is normally completed through a public deed of sale, the escritura pública de compraventa, signed before a Spanish notary.
The notary is an independent public legal professional who verifies and formalises the transaction and provides impartial legal guidance to the parties.
However, the notary does not act exclusively on behalf of the buyer.
For that reason, many international purchasers also appoint an independent lawyer who specifically protects their interests and carries out due diligence before completion.
After signing, the new ownership is submitted for registration with the Spanish Land Registry.
Property Taxes in Costa Blanca in 2026
Costa Blanca is located in the Valencian Community, so regional tax rules are particularly important when calculating the real cost of a purchase.
Resale Property: ITP
For a standard resale property purchase in the Valencian Community, the general Property Transfer Tax (Impuesto sobre Transmisiones Patrimoniales or ITP) rate is:
- 9% general rate from 1 June 2026
- 11% general rate when the taxable value exceeds €1 million
Reduced rates may apply in specific circumstances depending on factors such as the buyer, the property and its intended use.
The exact tax position should therefore be confirmed for each individual transaction.
Important: The Cadastral Reference Value
For many resale transactions, buyers should also check the property's official cadastral reference value (valor de referencia).
Where a reference value exists, it can affect the taxable base used for ITP. If the declared value is higher than the reference value, the higher declared value may become the relevant taxable base.
This is why calculating ITP solely by applying a percentage to the negotiated purchase price can sometimes produce an incorrect estimate.
New-Build Property: VAT and AJD
A new residential property purchased as a first delivery from a developer is generally subject to:
- 10% VAT (IVA)
- Stamp Duty (AJD) at the applicable rate
In the Valencian Community, the general AJD rate for cases not covered by a special rate is currently 1.4%.
Different rates can apply in specific situations. For example, qualifying acquisitions of a habitual residence may be subject to a reduced AJD rate.
Always confirm the applicable rate based on the individual buyer and transaction.
Summary of the Main Purchase Taxes
| Cost | Resale Property | New-Build Property |
|---|---|---|
| Property Transfer Tax (ITP) | 9% general rate; 11% where taxable value exceeds €1 million | Not normally applicable |
| VAT (IVA) | Not normally applicable | 10% general rate on residential first deliveries |
| Stamp Duty (AJD) | Depends on the transaction | Applicable; 1.4% general rate in other cases, with possible reduced rates |
| Notary | Variable | Variable |
| Land Registry | Variable | Variable |
| Legal Fees | Depends on provider and service | Depends on provider and service |
| Mortgage / Valuation Costs | If applicable | If applicable |
Tax rules and reduced rates depend on the circumstances of each transaction, so buyers should obtain an individual calculation before signing a binding contract.
Resale vs New-Build Property in Costa Blanca
Both resale and new-build homes are widely available across Costa Blanca, but they offer different advantages.
Resale Properties
Resale properties may offer:
- Established neighbourhoods
- Immediate availability
- A wider variety of locations
- Opportunities for renovation or negotiation
- Existing community infrastructure
They can be particularly common in established coastal areas such as Torrevieja, La Mata and parts of Orihuela Costa.
New-Build Properties
New-build developments often offer:
- Modern construction standards
- Energy-efficient installations
- Contemporary layouts
- Communal swimming pools and landscaped areas
- New kitchens and bathrooms
- Warranties applicable to new construction
Buyers should compare the final total cost, location, delivery timetable and payment schedule rather than looking only at the advertised price.
Can Non-Residents Get a Mortgage in Spain?
Yes. Spanish banks can offer mortgages to non-resident buyers.
However, lending conditions vary considerably between banks and individual applicants.
A bank will normally review factors including:
- Income
- Employment or business activity
- Existing debts
- Credit profile
- Age
- Country of residence
- Property valuation
- Source of funds
Non-resident buyers should not assume that a specific percentage of the purchase price will automatically be financed.
It is better to obtain an initial financing assessment before committing to a property if the purchase depends on a mortgage.
Where to Buy Property in Southern Costa Blanca
Different areas of Costa Blanca suit different types of buyers.
Torrevieja
Torrevieja offers a large residential property market with apartments, townhouses and villas across coastal and urban neighbourhoods.
It is popular with international buyers looking for permanent homes, holiday properties and investment opportunities, with access to beaches, shops, healthcare and everyday services.
Orihuela Costa
Orihuela Costa includes several well-known residential areas such as Villamartín, Playa Flamenca, La Zenia, Cabo Roig and Campoamor.
Buyers can find apartments, townhouses, detached villas and newer developments, with beaches, golf courses, shopping and international communities nearby.
La Mata
La Mata is located immediately north of central Torrevieja and is particularly attractive to buyers who prioritise proximity to the beach.
The area includes apartments and residential developments within walking distance of the coast as well as properties around the surrounding residential zones.
Guardamar del Segura
Guardamar del Segura combines beaches, residential neighbourhoods and a traditional Spanish town centre.
It can appeal to buyers looking for a coastal property while maintaining access to year-round local services.
San Miguel de Salinas
San Miguel de Salinas is located inland from Orihuela Costa and can be an alternative for buyers who prefer a more residential environment while remaining within driving distance of the coast.
The right area depends on whether the property will be used as a permanent home, holiday home, investment or future retirement property.
Common Mistakes International Buyers Should Avoid
Paying a Deposit Before Legal Checks
A reservation payment can have contractual consequences. Understand exactly when a deposit is refundable and when it is not.
Looking Only at the Asking Price
Taxes and transaction costs must be included in the total budget.
Assuming All Property Information Is Correct
The physical property should be compared with the Land Registry, Cadastre and relevant planning documentation.
Waiting Too Long to Arrange the NIE
Administrative delays can complicate a transaction if the NIE process begins too late.
Assuming Mortgage Approval Is Guaranteed
A preliminary conversation with a bank is not the same as final mortgage approval.
Buying for Rental Without Checking the Rules
If rental income is part of the investment strategy, verify the current rules applying to the property and municipality before purchase.
Using Only the Selling Agent's Portfolio
International buyers may benefit from comparing properties offered through several agencies rather than restricting their search to one inventory.
How Virgil Properties Helps International Buyers
At Virgil Properties, I work with international buyers looking for property across Costa Blanca.
Instead of limiting the search to properties marketed directly by one agency, I can coordinate property searches across collaborating agencies and help buyers compare suitable opportunities from the wider local market.
The service can include:
- Property search based on the buyer's requirements and budget
- Coordination with collaborating real estate agencies
- Property viewings and video presentations
- Offer preparation and negotiation
- Coordination with lawyers
- Assistance with NIE and banking contacts
- Coordination during the reservation and purchase process
- Communication between the buyer and the professionals involved in the transaction
- Support through to completion at the notary
The objective is to give international buyers one point of contact while they navigate a property market, legal system and buying process that may be unfamiliar to them.
Frequently Asked Questions
Can foreigners buy property in Costa Blanca?
Yes. Both EU and non-EU citizens can buy property in Spain. However, specific additional requirements can apply to some non-EU buyers in areas subject to national defence restrictions, so the individual property should be checked.
Do I need Spanish residency to buy a property?
No. You can buy property in Spain as a non-resident.
Buying a property does not automatically make you a Spanish tax resident or grant residency rights.
Do I need an NIE to buy property in Spain?
International buyers normally require an NIE to complete the purchase and related tax and administrative procedures.
Starting the application early can help avoid unnecessary delays.
What tax do I pay when buying a resale property in Costa Blanca in 2026?
The general ITP rate in the Valencian Community is 9% from 1 June 2026. When the taxable value exceeds €1 million, the general rate is 11%.
Reduced rates may apply in specific circumstances.
What taxes apply to a new-build property?
A new residential property purchased from a developer as a first delivery is generally subject to 10% VAT plus the applicable AJD.
The precise AJD rate depends on the circumstances of the transaction.
Can a non-resident obtain a Spanish mortgage?
Yes. Many Spanish banks finance property purchases by non-residents, but approval, loan-to-value, interest rates and conditions depend on the bank and the buyer's financial profile.
Can I buy property in Spain without travelling to Spain?
In many cases, yes.
A buyer may be able to authorise a lawyer or another representative through a valid power of attorney to carry out certain parts of the transaction.
The exact documentation should be arranged with the lawyer and notary handling the purchase.
How long does it take to buy a property in Costa Blanca?
There is no fixed timeframe.
A straightforward cash purchase with complete documentation can progress relatively quickly, while a mortgage, legal issue, inheritance, missing documentation or other complication can extend the process.
How much should I budget on top of the property price?
There is no single percentage that applies to every purchase.
For a typical resale purchase below €1 million, the starting point is the applicable 9% ITP plus variable legal, notary, registration and any financing-related expenses.
For a new-build property, buyers normally need to calculate 10% VAT plus the applicable AJD and other transaction expenses.
A transaction-specific calculation is preferable to relying on a generic percentage.
What happens if I change my mind after paying a deposit?
It depends on the contract you signed.
Different reservation and arras agreements can have different legal consequences. In some situations the buyer can lose the deposit, while other contracts may contain conditions allowing withdrawal.
The contract should therefore be reviewed before payment.
Looking for Property in Costa Blanca?
If you are planning to buy property in Torrevieja, Orihuela Costa, La Mata, Guardamar del Segura or elsewhere in southern Costa Blanca, Virgil Properties can help you search across the local market, compare opportunities, organise viewings and coordinate the purchase process from the initial search through to completion.
Contact Virgil Properties to discuss your budget, preferred area and property requirements.
Official Information Sources
Tax and legal rules can change. Buyers should verify the circumstances of each individual transaction before signing a contract.
Useful official sources include:
- Agencia Tributaria – Spanish Tax Agency
- Boletín Oficial del Estado (BOE)
- Generalitat Valenciana / Valencian Tax Administration
- Dirección General del Catastro
- Consejo General del Notariado
- Spanish Land Registry
- Spanish National Police information concerning NIE applications