Buying a property on the Costa Blanca is open to international buyers, whether you are looking for a permanent home, a second home, a holiday property or an investment. The process is straightforward, but it is important to understand the purchase costs, taxes, payment structure and legal checks before committing to a property.

1. Get Your NIE and Arrange Your Finances
Foreign buyers normally need a NIE (Foreigner Identification Number) for property-related transactions and other formalities in Spain.
You will also need to arrange how the purchase funds will be transferred. Many international buyers open a Spanish bank account, which makes it easier to handle the purchase, taxes and ongoing property expenses.
If your funds are held in a bank in another SEPA country, such as an EU country, they can generally be transferred to a Spanish bank account in euros using a SEPA transfer.
Your bank or Spanish financial institution may also ask you to provide documents showing the source of the funds, particularly for a large property purchase.

2. Understand the Difference: Resale vs New Build
One of the most important decisions is whether to buy a resale property (second-hand) or a new-build property directly from a developer.
Resale PropertyFor a resale property in the Comunitat Valenciana, the general Property Transfer Tax (ITP) is currently 9% for transactions from June 1, 2026, with an 11% rate applying where the property's value exceeds €1 million.
There are also additional costs such as notary and property registration fees and, where applicable, legal or administrative services.
New-Build PropertyWhen you buy a new home directly from a developer, the tax structure is different.
Residential new-build properties are generally subject to 10% VAT (IVA).
In the Comunitat Valenciana, AJD (Stamp Duty) is also generally payable. The standard rate is currently 1.4%, while a reduced rate of 0.1% applies in certain qualifying cases, such as the acquisition of a habitual residence.
For an international buyer purchasing a holiday home or investment property, the standard treatment should therefore be checked for the specific transaction rather than assuming the reduced rate applies.

3. How Much Money Do You Actually Need?
Let's take a practical example.
Example: A €400,000 Resale ApartmentPurchase price: €400,000
ITP at 9%: €36,000
Then allow for additional purchase costs such as notary, property registration and professional services.
So a realistic budget would be approximately:
€400,000 + €36,000 + additional transaction costs
The exact amount depends on the property, the transaction and the professional services involved. The tax base can also depend on the applicable reference value, so the final calculation should always be confirmed for the specific property. The Spanish government recommends checking the property's legal status and registered information before purchasing.
Example: A €400,000 New-Build ApartmentPurchase price: €400,000
VAT (IVA) at 10%: €40,000
AJD at the applicable rate: €5,600 at 1.4%
Plus notary, registration and other transaction costs.

So before purchasing, you should budget approximately:
€400,000 + €45,600 + additional transaction costs
This illustrates why the advertised purchase price is not the same as the total amount required to complete the purchase.

4. New-Build Properties: How Payments Usually Work
New-build purchases can work differently from resale properties, particularly when you buy off-plan during construction.
Many Costa Blanca developments are delivered as fully finished homes, often including fitted kitchens, bathrooms, built-in wardrobes, air conditioning and other installations. Depending on the development, some properties may also be offered furnished or with furniture packages.
The payment schedule is usually divided into stages rather than requiring the entire purchase price immediately.
A typical structure might include:
Reservation: an initial reservation payment to secure the property.
Private purchase contract: a further deposit, often bringing the total initial payment to a specified percentage of the purchase price.
Construction payments: additional instalments made according to the developer's agreed payment schedule as construction progresses.
Completion: the remaining balance is paid when the property is completed and the purchase is formalised before a notary.
The exact schedule varies significantly between developers and developments, so the payment plan should always be reviewed before signing.
For off-plan purchases, the Spanish authorities recommend checking the developer, ownership of the land, planning permission and other legal aspects before making payments.

5. What Happens Before You Sign?
Before committing to a property, the legal and financial details should be checked carefully.
For a resale property, this can include checking:

• ownership and registered title;
• mortgages, liens or other charges;
• outstanding community fees;
• IBI property tax;
• planning and property information;
• the property's cadastral and registry details.

A nota simple from the Property Registry provides important information about ownership and registered charges.
For a new-build property, additional checks are important, including the developer, land ownership, planning permission, construction documentation and guarantees.

6. From Property Selection to Keys
This is where working with an experienced real estate professional can save you significant time and unnecessary stress.

At BuyHouse-Spain, we analyse suitable properties across the Costa Blanca according to your budget, location, lifestyle and purchase goals. We compare available options, explain the important differences and help you understand the costs and payment structure before you make a decision.
We then coordinate the process with the relevant agents, developers and trusted legal, financial and administrative professionals - from property viewings and negotiations through the purchase process and key handover.
The goal is simple: you should understand what you are buying, what you are paying and what happens at every stage of the process.