Guide to buying a home on the Costa Blanca

If you are reading this guide, you are probably considering or have made the decision to buy a property on the Costa Blanca. Congratulations, you have chosen one of the most privileged areas of the Mediterranean to reside, either as a primary residence, second home or as an investment for rent.

Legal certainty and expert support

Spain, as a member of the European Union, has a solid legal system in real estate and notarial matters. With our accompaniment and that of our legal team specialized in Real Estate Law, you can have the peace of mind that the purchase process will be legally safe, transparent and professional.

A simpler process than you imagine

Buying a home in Spain is a simpler process than it seems. Our goal at Holidaydream is to make your experience totally satisfying, exciting, stress-free and hassle-free.

Who can buy in Spain?

Citizens of the European Union: There are no restrictions on the purchase or sale of property.
Non-EU citizens: Although there are some specific aspects to consider, the acquisition of property does not present significant problems.

Basic requirements

Foreigners: They only need to obtain an N.I.E. (Foreigner Identification Number), an essential requirement for any real estate transaction in Spain.
Spanish citizens: It is only necessary to present the ID card. (National Identity Document) in force.

Phases of the purchase process

1. Reservation of ownership

Once the property has been selected and the price has been agreed, a reservation document is signed to remove the property from the market and set the initial conditions. This step involves a deposit, which usually ranges from €3,000 to €10,000, depending on the agreement reached and the type of property.

2. Purchase option contract

After the legal review of all the documentation by your lawyer, the Private Purchase Option Contract is drafted, which specifies:

Agreed price
Inventory included
Payment method
Date of signature before a notary

At this time, 10% of the purchase price is paid, deducting the deposit previously paid.

If you do not have a lawyer, we can recommend highly qualified multilingual experts in Real Estate Law in the area.

3. Signing of the public deed

Prior to the appointment at the notary's office, the notary and your lawyer will review all the documentation. In the act of the public deed of sale, the notary will read the document, both parties will sign and the keys will be handed over.

Subsequently, the notary will send the deed to the Land Registry to formalise your status as the new owner.

Purchase and sale costs

Resale property:

Property Transfer Tax (ITP): calculated according to the cadastral reference value or the declared value (+10%) up to €999,999, (+11%) from €1,000,000, whichever is higher.
Notary and Land Registry: approximately between €1,500 and €2,000.

Newly built housing:

10% VAT
1.5% in Stamp Duty (AJD)

Plots:

First transfer: 21% VAT
Second transmission: 10% ITP

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

Subsequent (annual) cats

IBI (Property Tax)
Solid waste (garbage) collection fee

Both taxes are paid once a year, usually in autumn, and vary depending on the locality.

Need personalized help?

At Holidaydream we are at your disposal to advise you throughout the process, from the choice of property to the signing before a notary. Our commitment is to make your purchase an easy, transparent and completely satisfactory experience.

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