Buying property in Spain costs up to 13 to 14 per cent on top of the listing price on the Costa Blanca. That is 9 per cent ITP on a resale home or 10 per cent VAT on a new build, plus up to 4 per cent legal and official costs. UK buyers pay the same purchase taxes as others.
How much does it cost to buy on the Costa Blanca?
Here is a €200,000 home on the Costa Blanca, resale and new build side by side:
| Cost | Resale home | New build |
|---|---|---|
| Purchase tax | ITP at 9 per cent: €18,000 | VAT (IVA) at 10 per cent: €20,000 |
| Legal and official costs | up to 4 per cent: up to €8,000 | up to 4 per cent: up to €8,000 |
| Added to the price | up to €26,000 | up to €28,000 |
| Total | up to €226,000 | up to €228,000 |
The legal and official line covers the notary, the land registry, your lawyer and paperwork. On a new build it also includes the AJD stamp tax. Notary and registry fees follow national scales, set by Real Decreto 1426/1989 and 1427/1989, and they rise with the price.
At the European Central Bank's rate of 30 October 2026, €226,000 is about £188,400.
Agent fees are not in this table. Our clients don't pay us commission.
What is ITP, and why is it 9 per cent?
ITP (Impuesto sobre Transmisiones Patrimoniales) is the transfer tax on resale homes. It is a regional tax, so there is no separate Costa Blanca rate. The Costa Blanca is in the Comunitat Valenciana, and that region's rate applies from Torrevieja to Calpe.
Ley 5/2025 cut the general rate from 10 to 9 per cent for taxable events from 1 June 2026. The tax falls due on the date of the deed or private contract. So 1 June is the line that matters, not the date the law passed.
| Value of the home | Saving at 9 per cent against 10 per cent |
|---|---|
| €250,000 | €2,500 |
| €400,000 | €4,000 |
| €800,000 | €8,000 |
Three details change the sum:
- Above €1 million the rate is 11 per cent, not 9.
- Reduced rates exist, but they are narrow. An example is the first main home of a buyer under 35, on conditions. Most holiday home buyers will not qualify.
- The tax may not be on your price. The base is the cadastral reference value (valor de referencia), unless your price is higher.
That last point matters most. Say you agree €180,000 and the reference value is €195,000. You pay 9 per cent of €195,000, which is €17,550 and not €16,200. Ask your lawyer to check the reference value before you sign.
You have one month from the deed to file and pay, on Modelo 600.
What tax do you pay on a new build?
You pay 10 per cent VAT on the price, then AJD (Actos Jurídicos Documentados) on the deed. AJD in the Valencian region fell from 1.5 to 1.4 per cent on 1 June 2026, on the same law. A lower 0.1 per cent rate exists for buying a main home, so it does not help most second home buyers.
On €200,000 at 1.4 per cent, AJD is €2,800, which is already inside the 4 per cent in our table.
If you are buying off plan, GOV.UK says to make sure a bank guarantee covers your stage payments. It should be individual, not collective. Weighing up the two routes? See new build versus resale in Spain, and for one town in detail, new builds in Calpe.
Do you pay stamp duty when buying in Spain?
Not UK Stamp Duty Land Tax. There is no sliding scale like the one you may know from home. In Spain, resale buyers pay ITP as a flat regional rate, and the closest thing to a stamp tax is AJD on a new build.
If you search for "stamp duty Spain", ITP and AJD are the two taxes you are looking for.
Do British buyers pay extra tax in Spain?
Not on the purchase. The ITP and VAT rates above do not depend on your nationality.
You may have seen headlines about a 100 per cent tax on non-EU, non-resident buyers. It would have applied to Britons, but it is not law. The Local reported in October 2026 that parliament never debated it and that it is not among the housing measures in force. Parliament has since been dissolved, so the next government decides whether it returns. Ask your lawyer for the position before you sign.
Where UK buyers do pay more is after the purchase, as the yearly tax below shows.
What are the hidden costs of buying property in Spain?
These are the ones that catch UK buyers out:
- The pound. Your costs are in euros and your savings probably are not. On €226,000, each 1 per cent move in the rate shifts the sterling bill by about £1,900. Compare transfer providers early.
- The 3 per cent withholding. If the seller is not resident in Spain, you must hold back 3 per cent of the price and pay it to the tax office on Modelo 211 within one month. On €200,000 that is €6,000 of the seller's money, not an extra cost. If it goes unpaid, the home itself can answer for the debt.
- Plusvalía. This municipal tax normally falls on the seller. If the seller is a non-resident individual, the law makes the buyer the substitute taxpayer, so have your lawyer deal with it at signing.
- Community debts. GOV.UK warns that you may take on unpaid community debts for the current and previous year. Ask for a certificate.
- Your NIE. You need this foreigner's number to buy, and you can apply through a Spanish consulate in the UK or a representative.
- Restricted areas. GOV.UK says non-EU nationals may need a military permit in certain areas, including parts of the coast. Your lawyer can confirm whether this applies.
GOV.UK strongly recommends an independent lawyer, registered with the local bar association, who works only for you. The notary must give free, impartial advice, and you can choose which notary to use. Buying cheaply has its own risks, covered in cheap property in Spain.
What will you pay each year as a non-resident owner?
If you keep a home for your own use and are not tax resident in Spain, you pay non-resident income tax on an imputed income, even if you earn nothing from it.
- The base: 1.1 per cent of the cadastral value on your IBI receipt where the valuation is recent, and 2 per cent otherwise.
- The rate: 24 per cent for UK residents, against 19 per cent for residents of the EU, Iceland, Norway and Liechtenstein. This is the Brexit gap.
- The form: Modelo 210.
- The deadline: for 2026 income, the window runs from 1 April to 31 December 2027, or to 23 December if you pay by direct debit. An order of June 2026 set this, and it is new, so older guides may be out of date.
| Example, cadastral value €100,000 at 1.1 per cent | Tax a year |
|---|---|
| UK resident, 24 per cent of €1,100 | €264 |
| Irish resident, 19 per cent of €1,100 | €209 |
The tax is reduced in proportion if you owned the home for only part of the year. Letting follows different rules, so take advice. You will also pay IBI, the local property tax, plus community fees.
Buying does not change how long you can stay. British owners remain on 90 days in any 180, as our guide to wintering in Spain explains.
What does this mean for the Costa Blanca market?
The land registrars report that foreign buyers took 46.43 per cent of homes bought in Alicante province in the second quarter of 2026, the highest share in Spain. British buyers were the largest foreign group nationally, at 6.99 per cent of foreign purchases. The average in the province that quarter was €2,267 per square metre.
On 30 October 2026 we had 514 properties listed in Torrevieja and 162 in Calpe. Use the 13 to 14 per cent figure when you compare them, not the listing price alone.
Frequently asked questions
How much does it cost to buy a property in Spain on top of the price? On the Costa Blanca, budget up to 13 to 14 per cent on top of the listing price. That is 9 per cent ITP on a resale home or 10 per cent VAT on a new build, plus up to 4 per cent legal and official costs. A €200,000 resale home comes to about €226,000.
What is ITP tax in Spain? ITP is the regional transfer tax you pay when you buy a resale home. In the Comunitat Valenciana, which includes the Costa Blanca, the general rate has been 9 per cent since 1 June 2026, and 11 per cent above €1 million. New builds pay VAT instead.
Do you pay stamp duty when buying in Spain? Not UK Stamp Duty, but Spain has its own taxes. Resale buyers pay ITP. New build buyers pay 10 per cent VAT plus a stamp tax called AJD, generally 1.4 per cent in the Valencian region. These are regional taxes, so rates differ across Spain.
Do British buyers pay more tax in Spain? Not when buying, because ITP and VAT apply at the same rates. After buying, British non-residents pay 24 per cent on imputed income from a home kept for their own use, against 19 per cent for EU residents. A proposed 100 per cent tax on non-EU buyers has not become law.
Is Spain's 100 per cent property tax law? No. The proposed tax on non-EU, non-resident buyers was never debated by parliament, according to The Local in October 2026, and it is not among the housing measures in force. Parliament has since been dissolved, so any revival depends on the next government. Check the position before you sign.
How much is non-resident property tax in Spain? It depends on the cadastral value. A home kept for your own use is treated as earning 1.1 or 2 per cent of that value, taxed at 24 per cent for UK residents. On a cadastral value of €100,000 at 1.1 per cent, that is €264 a year, filed on Modelo 210.
Want the real number for your budget?
Tell us what you want to spend, and we will help you work out what it covers once tax and fees are in. We work with lawyers and banks, we guide you through each stage and we keep an eye on deadlines. Tripinvest ES is a licensed agency (RAICV 4221) with offices in Torrevieja and Calpe and a head office in London. Service is in English from first call to the notary.
Or call us on +44 20 3888 0008.
Sources
Last checked: October 2026
- BOE, Ley 5/2025, de 30 de mayo, Articles 33 and 34: boe.es (official)
- BOE, Ley 13/1997, consolidated text, Articles 13 and 14: boe.es (official)
- Agència Tributària Valenciana, I have bought a property: atv.gva.es (official)
- Agencia Tributaria, buyer's 3 per cent withholding: sede.agenciatributaria.gob.es (official)
- Agencia Tributaria, Modelo 211 instructions: sede.agenciatributaria.gob.es (official)
- Agencia Tributaria, imputed income on urban property for own use: sede.agenciatributaria.gob.es (official)
- Agencia Tributaria, non-residents manual, form and deadline: sede.agenciatributaria.gob.es (official)
- BOE, Orden HAC/623/2026, de 12 de junio: boe.es (official)
- BOE, Real Decreto Legislativo 5/2004, non-resident income tax, Article 25: boe.es (official)
- BOE, Real Decreto Legislativo 2/2004, local finance law, plusvalía: boe.es (official)
- GOV.UK, How to buy property in Spain: gov.uk (official)
- European Central Bank, euro reference rate for sterling, 30 October 2026: data-api.ecb.europa.eu (official)
- Colegio de Registradores, Estadística Registral Inmobiliaria, second quarter 2026: registradores.org (official)
- The Local, 19 October 2026, updated 24 October 2026: Will Spain's 100 percent property tax on foreign buyers ever pass?
- CostaLuz Lawyers, notary fees and Real Decreto 1426/1989 and 1427/1989: costaluzlawyers.com
- Tripinvest ES listings, 30 October 2026
