Buying a property in Spain is a straightforward process when you understand the steps involved and the costs you should budget for.

Whether you are purchasing a holiday home, a permanent residence or an investment property on the Costa Blanca, this guide explains the buying process in the Valencian Community, the taxes involved and the key documents you will need before completion.

What Costs Should You Expect When Buying Property in the Valencian Community?

The total acquisition costs will depend on whether you are buying a resale property or a new-build home.

As a general rule, buyers should budget between 10% and 13% of the purchase price to cover taxes and associated costs.

Buying a Resale Property

If you purchase a second-hand property, the main costs are:

Property Transfer Tax (ITP), Notary fees, Land Registry fees, Administrative processing (Gestoría), Independent legal advice, Mortgage-related costs (if applicable)

Property Transfer Tax (ITP)

From 1 June 2026, the general ITP rate in the Valencian Community is 9% for most resale property purchases. Properties with a value exceeding €1,000,000 continue to be taxed at 11%.

Reduced rates may apply in specific situations, including:

Young buyers purchasing their primary residence.

Large families.

Single-parent families.

Buyers with recognised disabilities.

Certain protected housing schemes.

Eligibility depends on meeting specific legal and income requirements.

Notary, Registry and Administrative Costs

These costs typically range between €1,500 and €3,500, depending on the purchase price and complexity of the transaction.

For higher-value properties, notary and registration fees may increase accordingly.

Independent Lawyer

Although not legally mandatory, hiring an independent lawyer is highly recommended.

A lawyer will:

Verify ownership.

Review debts and charges.

Check planning permissions.

Review contracts.

Coordinate completion.

Legal fees generally range between 0.5% and 1% plus VAT of the purchase price.

Buying a New-Build Property

When purchasing directly from a developer, different taxes apply.

VAT (IVA)

New-build properties are subject to VAT at 10% of the purchase price.

Stamp Duty (AJD)

In addition to VAT, buyers must pay Stamp Duty (AJD).

From June 2026, the general AJD rate in the Valencian Community is 1.4%, reduced from the previous 1.5%. Certain special rates remain applicable in specific circumstances.

Other Costs

The buyer should also budget for:

Notary fees, Land Registry fees, Administrative processing, Legal representation, Mortgage costs if financing is required.

Documents Required to Buy Property in Spain

Before completing a purchase, buyers will normally need:

Passport or National Identity Document

All purchasers must provide valid identification.

NIE Number

The NIE (Número de Identificación de Extranjero) is mandatory for foreign buyers.

This tax identification number is required for:

Purchasing property, Opening a bank account, Paying taxes, Registering utility contracts.

The NIE can be obtained in Spain or through Spanish Consulates abroad.

Spanish Bank Account

While not legally compulsory, opening a Spanish bank account is highly recommended.

It simplifies payment of:

Utilities, Community fees, Property taxes, Insurance policies.

Proof of Funds

Spanish anti-money laundering regulations require buyers to provide evidence of the origin of funds used in the transaction.

Your lawyer and bank will guide you through these requirements.

Documents the Seller Must Provide

Before completion, the seller should provide documentation confirming the legal status of the property.

This typically includes:

Title deeds, Energy Performance Certificate (EPC), Latest IBI receipt (property tax), Community of Owners certificate confirming payments are up to date, Utility payment receipts, Certificate of occupancy where applicable.

For new-build properties, additional documentation may include:

Building licences, First Occupation Licence or equivalent occupancy authorisation, Building insurance guarantees, Technical building documentation.

The Property Buying Process in Spain

The purchase process usually consists of three stages.

Step 1: Reservation Agreement

Once a buyer decides to proceed, the property is usually reserved and removed from the market.

A reservation deposit is commonly paid at this stage.

The amount varies according to the property and agreement between the parties.

During this period, legal checks and due diligence begin.

Step 2: Private Purchase Contract (Contrato de Arras)

The next stage is the signing of a private deposit contract, commonly known as the Contrato de Arras.

This document establishes:

Agreed purchase price, Completion date, Conditions of sale, Included fixtures and fittings, Penalties for non-compliance.

Typically, the buyer pays approximately 10% of the purchase price at this stage.

The Arras Contract provides legal protection for both parties and formalises the commitment to complete the transaction.

Step 3: Signing the Public Deed Before a Notary

Completion takes place before a Spanish Notary.

On completion day:

The remaining balance is paid, Ownership is transferred, Keys are handed over, The public deed is signed.

Buyers have the right to choose the notary, although in practice the decision is often agreed between both parties.

Once signed, ownership passes to the buyer.

What Happens After Completion?

Many buyers assume the process ends when they receive the keys. In reality, several administrative steps remain.

Payment of Taxes

The relevant taxes must be declared and paid within the legal deadlines.

These include:

ITP for resale properties, VAT and AJD for new-build properties.

Land Registry Registration

After completion, the title deed is submitted to the Land Registry.

Registration provides legal protection and confirms the buyer as the official owner.

Utility Transfers

Water, electricity, gas, internet and community records should be updated to reflect the new ownership.

Property Insurance

Buildings and contents insurance should be arranged immediately after completion.

Buying Property on the Costa Blanca with Confidence

At CAROLA HOMES Real Estate, we guide international buyers through every stage of the purchasing process across Costa Blanca North and Costa Blanca South.

From finding the right property to coordinating lawyers, notaries, mortgage advisors and post-completion services, our goal is to make buying property in Spain as straightforward and transparent as possible.

If you are considering purchasing a property on the Costa Blanca, our team will be happy to answer your questions and help you navigate the process with confidence.