Purchasing a property in Spain, particularly in the Alicante province, is a major decision that requires careful planning. While many buyers focus on the advertised sale price, it is essential to understand that there are additional costs and taxes involved in the process. Being aware of these from the beginning helps avoid surprises and ensures a smooth transaction.

Taxes

• Transfer Tax (ITP): For resale properties, the standard rate in the Valencian Community is 10% of the purchase price.
  However, reduced rates between 6% and 8% may apply if the buyer is a Spanish resident purchasing their primary residence and meets certain requirements:

  • Under 35 years old.

  • Recognised large families (familia numerosa).

  • Families with dependent children.

  • Buyers with a disability of 65% or more.
    These reductions only apply to Spanish residents. Non-resident foreign buyers generally pay the full 10%.

• IVA (Value Added Tax): On new build properties, the rate is 10%.

• Stamp Duty (AJD): For new builds, buyers must also pay 1.5%.

Notary and Land Registry

Property purchases must be signed before a notary. Fees generally range from 600€ to 1,000€.
The Land Registry adds another 400€ to 800€.

Legal Fees

Independent lawyers typically charge around 1% of the purchase price, with a minimum of 1,200€ to 1,500€.

Bank and Mortgage Costs

• Opening fee: up to 1% of the loan.

• Valuation: approx. 300€ to 600€.

Other Expenses

• Gestoría: 300€ to 500€, if a bank is involved.

• Currency exchange: Specialist providers can save significant amounts compared to banks.

• Home insurance: Mandatory with mortgages, strongly advised otherwise.

Total Costs to Expect

In practice, buyers in the Alicante province should budget 12% to 15% extra on top of the purchase price. For a 150,000€ resale property, that means 18,000€ to 22,500€ in additional costs.

At Holiday Homes Catral, we ensure no surprises are left hidden. We check for debts on every property, explain all costs upfront, and connect our clients with trusted lawyers, notaries, and currency specialists. From the first viewing to receiving the keys, we guide you every step of the way.

⚖️ Disclaimer: This information refers to purchases in the Alicante province / Valencian Community. Reduced ITP rates (6% to 8%) may apply only to Spanish residents who meet legal requirements such as age, family status, disability, or first-time buyer conditions. Non-residents should budget for the full 10% ITP on resales.