Guide to buying a home on the Costa Blanca

If you are reading this it is because you are probably thinking about or have decided to buy a house on the Costa Blanca

Without a doubt you have chosen the best place to live, whether all year or just a few months as a primary residence, second residence or rental investment.

Guide to buying a home on the Costa Blanca

Spain is a member of the European Union and has a strong legal system in real estate and notarial law, with our help and that of our legal team of lawyers specialized in real estate law, the purchase of homes is legally safe in Spain. 

What now? First of all, relax! It is much easier than it seems, and we explain it to you below, with Holidaydream it is not a cause for concern for you, on the contrary it will always be a satisfactory, exciting, pleasant and stress-free experience, our goal is to make your purchase as easy as possible and without complications.

Citizens  of the Member States of the European Union (EU) are not subject to any restrictions on the purchase or sale of real estate  in Spain.

Citizens from outside the EU, some particularities must be taken into account , but, in principle, the purchase of a property is not a problem.

At Holidaydream our goal is to make your purchase as easy as possible and hassle-free.

Realization of the purchase | sale

Foreign citizens in Spain the only requirement for the purchase of a home is to have the N.I.E. (identification number for foreigners), there is no other special requirement for the purchase of a home. 

Spanish citizens only need the DNI (National Identity Document) in force.

The current Spanish system, based on close collaboration between the Notary and the Land Registry, gives maximum legal certainty. 

The housing reservation

Once you have chosen your property and agreed on the purchase price, a Reservation document is drawn up prior to the purchase option contract that is signed at the time of the purchase decision to block and remove the home from the market and ensure the price for both the buyer and the seller.

It is usually done by delivering a reservation deposit that ranges between €3,000 and €10,000, depending on the agreement reached and depending on the type of property.

Purchase option contract and reservation deposit

This contract is the firm commitment of purchase and sale.

When all the documentation of the house is reviewed by your lawyer specializing in real estate law and is correct, they prepare the PRIVATE PURCHASE OPTION CONTRACT and the payment of the reservation deposit is made, which is made up of 10% of the agreed purchase price. , less the reservation deposit.

If you do not have a lawyer, we can recommend the best multilingual Real Estate Law specialists in the area.

In the private contract must be written all the agreed terms, sale price, inventory, form of payment, date of deed, etc.

The appointment in Notary:

Before signing the Public Deed of Sale, during the previous days, the notary and your lawyer will check all the documentation again and draft the deed.

Once there, the notary will read the deed aloud, you will sign and they will give you the keys to your new house.

Once the process is completed, the notary will be in charge of sending the Public Deed of Sale to the Property Registry so that the home can be registered and you appear as the new owner.

Expenses of buying and acquiring:

The buyer pays the legal expenses and Land Registry. Broken down as follows:

In the purchase of a second-hand property (already built), the buyer pays the ITP Property Transfer Tax.

Law 11/2021 on measures to prevent and combat tax fraud, published on July 10, 2021, modifies the concept of the tax base of the Property Transfer Tax (ITP), creating a new concept that is the reference value.

From January 1, 2022 , the Property Transfer Tax (ITP) of the properties will be calculated and settled by its reference value, which will be determined by the General Directorate of the Cadastre and will be informed by the Notary before the sale of the property or by the declared value of the purchase that will be +10%, For the settlement of this tax the highest amount will always be used.

In the purchase of new construction + 10% VAT (Value Added Tax) plus +1.5%, of A.J.D. (Documented Legal Acts) of the value of the property.

In the purchase of a plot of 1st transmission, the buyer pays the tax of +21% VAT (Value Added Tax) regardless of whether it is in the name of a company or an individual.

In the purchase of a plot of 2nd transmission, the buyer pays the tax  of +10% (Property Transfer Tax ITP) of the value of the plot, regardless of whether it is in the name of a company or an individual.

Plus notary and registration fees ± 1.500 - 2.000€

The cost of the real estate agent's commission is included in the sale price, unless otherwise agreed in the negotiations.

Subsequently, annual expenditure

  • IBI (Property Tax) 
  • Collection of solid waste (garbage) 

These taxes are paid annually in the fall and their estimate is subject to local regulations.

Sonya & José Luis
CEO | Founding Partners | Sales Managers
Registered as an agent in Real Estate Brokerage in the Valencian Community RAICV 1595

Perhaps we have for sale the widest and most select range of properties for sale on the Costa Blanca

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