Buying property in Spain - costs and process

Introduction

Buying a home in Spain, especially on the Costa Blanca, has become one of the most common decisions among international buyers looking to invest or live in areas such as Benidorm, Alicante, Finestrat, or Torrevieja. This region stands out for its stability, its high demand in the real estate market, and its ability to generate returns through rentals throughout the year.

However, buying a property in Spain requires understanding not only the property price, but also every legal, financial, and administrative aspect that is part of the process. For the purchase to be safe and efficient, it’s essential to know each stage, from choosing the home to signing before a notary and registering it with the property registry.

This content has been structured as a complete guide to buying a home in Spain, explaining the real costs, the documentation required, the differences between new-build and resales, the obligations after the purchase, and the key factors that determine a safe and profitable real estate investment on the Costa Blanca.

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Differences between new-build properties and second-hand homes

The real estate market in Spain is divided into two main categories: new-build and resale housing.
Understanding this difference is essential because it directly affects taxes, the condition of the property, and the type of investment.

In the case of new-build, the buyer purchases the property directly from the developer. This type of home
meets the most recent regulations on energy efficiency and construction quality, and in many cases forms part of
modern developments with shared amenities such as a swimming pool, gym, or private security. From a tax standpoint,
new-build properties are subject to VAT, which is currently 10%, and to the AJD transfer tax, which usually falls between 1% and 1.5%.
This type of property typically requires less initial maintenance, but it involves a total cost
slightly higher due to the tax burden.

On the other hand, resale housing is the type of property that is bought from a private owner. It is usually located
in more established areas, near the beach or the city centre, which makes it particularly attractive for rentals
or immediate use. In this case, the applicable tax is the ITP, which in the Valencian Community is around 10%.
Although the purchase price may be more competitive, it’s important to factor in possible renovations or updates.

Actual purchase costs and expense structure in Spain

One of the most common mistakes made by foreign buyers is to focus only on the property’s price, without taking into account
the actual total cost of the transaction. In Spain, buying a home involves a range of mandatory expenses that must be considered from the very beginning.

As a guideline, the buyer should set aside between a 11% and 13% additional amount on top of the purchase price, depending
on whether it is a new-build property or a second-hand home.

To make this easier to understand, in a property priced at €300,000, the final cost may fall approximately between €334,000
and €337,500. This difference is mainly due to the applicable tax rate: VAT for new builds or Transfer Tax (ITP) in the resale market.

Beyond the tax, there are other necessary costs that are part of the process:

Notary, who is responsible for formalizing the purchase and granting legal validity to the deed, with an usual cost between €1,200 and €2,000

Land Registry, which ensures the correct registration of the new owner, with an approximate cost of €600 to €1,000

Administrative fees, such as issuing a bank cheque, obtaining an NIE, or additional paperwork, around €500

Lawyer, whose role is to check all documentation, identify any potential encumbrances, and coordinate the purchase process,
with fees generally between the 1% and 2% of the property value, with a usual minimum close to €2,000

In the case of mortgage financing, the cost of the valuation must be added, which is essential for the bank to determine the property’s actual value. Planning these costs correctly from the outset helps avoid budget overruns and make safer decisions, especially in such an important transaction as buying a home in Spain.

Real example - primary market (new construction)

For a property priced at €300,000, the buyer must add:

VAT (10%): approx. €30,000
Stamp Duty (1.5%): approx. €4,500
Notary fees: approx. €1,600
Land Registry: approx. €800
Other administrative expenses: approx. €500

These additional costs come to approximately €37,500,
bringing the total cost of the transaction to around €337,500.

This represents an increase of close to 12-13% over the original price.

Real example - secondary market (resale)

For a property priced the same as €300,000, the costs would be:

I TP (10%): approx. €30,000
Notary: approx. €1,500
Land Registry: approx. €800
Other administrative expenses: approx. €500
Lawyer: approx. €1,500

The additional expenses come to approximately €34,000, bringing the total cost to around €334,000.

Here, the actual increase remains around 11–12%.

Required documentation and legal verification

The purchase process in Spain requires a thorough review of both the buyer’s situation and the property, since both factors determine the security of the transaction. From the buyer’s point
of view, it is essential to have a valid identity document, the N.I.E. number, and a bank account in Spain from which the transaction will be carried out. If financing is requested, it will be necessary to provide documentation proving income, job stability, and a credit report from the country of origin.

As for the property, the most relevant document is the Simple Note, which makes it possible to verify ownership and the existence of charges
or restrictions. It is also crucial to check the energy certificate, the status of any debts with the homeowners’ association, and, in the case of new construction, the existence of licenses, guarantees, and the developer’s compliance with regulations. This stage is essential to avoid risks and ensure that the transaction is carried out with full legal transparency.

The N.I.E. number and opening a bank account

The N.I.E. number is an essential requirement for any economic transaction in Spain, as it allows the buyer to identify themselves to the authorities and carry out actions such as signing before a notary or paying taxes. Without this number, it is not possible to formalize the purchase or complete the legal process.

In addition, it is necessary to have a bank account in Spain, from which all payments related to the purchase will be handled, including the property price, taxes, and the associated expenses. In most transactions, the payment is made by bank cheque issued by the financial institution, which guarantees security and traceability in the transaction.

How to get an N.I.E.?

Financing - mortgage process

Financing through a mortgage in Spain is a common option among foreign buyers who want to optimize their investment. Spanish banks offer financing, although with more conservative terms than for residents, which means a more detailed review of the buyer’s profile.

Typically, the financial institution finances between the 60% and 70% of the property value. The process begins with a pre-approval that usually takes between 10 and 20 days, during which the bank assesses the buyer’s financial capacity, income, and economic stability. After that, a valuation of the property is carried out, and the final loan conditions are set before final approval.

Learn about mortgages in Spain

Full purchase process of buying in Spain

The purchasing process in Spain follows a clear, step-by-step structure that ensures the security of the transaction. It all begins with selecting the property, where factors such as location, price, and the asset’s potential for appreciation in the market are assessed.

Once the property has been chosen, you make a reservation by paying a deposit that allows it to be temporarily withdrawn from the market. The next step is the signing of the deposit agreement, in which the terms of the sale are set out and both parties commit to the deal. During this phase, the lawyer carries out a comprehensive review of the documentation to ensure the transaction is lawful.

Finally, the transaction is formalized before a notary through the signing of the public deed of sale. At that moment, payment is made and the property is transferred. Subsequently, the deed is registered with the Land Registry, legally consolidating the buyer’s ownership.

Obligations and costs after purchase in Spain

Once the purchase has been completed, the owner must take on a series of periodic obligations that form part of maintaining the property. These include the property tax (IBI), the amount of which depends on the assessed cadastral value assigned to the home.

Likewise, for properties located within housing developments, it will be necessary to pay the community fees, which cover the maintenance of common areas, services, and the building’s management. Non-resident owners are also required to file an annual tax return, even if they do not rent out the property.

If the property is intended for rental, it will be necessary to declare the income earned and comply with the applicable tax regulations in Spain.

Learn about obligations

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Profitability, Rent and Use of the Property

The Costa Blanca is one of the areas with the highest potential for profitability in Spain, especially in cities like Benidorm, where tourist demand stays steady throughout the year. This factor makes buying a home an attractive option both for personal use and for investment.

That said, to rent out a property legally for tourism purposes, in many areas it is necessary to have a specific license. The profit potential will depend on factors such as location, the type of property, and proper rental management. In general, properties that are well located, in good condition, and offer attractive amenities tend to maintain high occupancy rates and generate steady income.

Benidorm Tourist License Guide

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Importance of the agency and professional support

The purchasing process in Spain is secure, but it involves multiple steps, checks, and coordination among different professionals. Having an experienced real estate agency and a lawyer ensures that each stage is handled correctly and without unnecessary risks.

Professional guidance not only provides legal certainty, but also makes it easier to negotiate, select suitable properties, and coordinate every aspect of the entire process through to the final signing.

Before closing the purchase, it’s essential to assess the investment from a holistic perspective that includes both financial and strategic factors. The property’s location, its condition, rental demand, and market trends are key elements that directly affect the investment’s profitability and security.

Professional advice helps reduce risk, spot opportunities, and make decisions based on real, verified information.

Our clients, our best reference

Mrs. Kamila helped us find our desired home. Very professional.

— Irene Mirete Sánchez

We found Estrellas through a recommendation, and it was a total success. A professional approach, with all arrangements organized and prepared for our arrival in Spain. Without knowing the Spanish market or the Costa Blanca area, we shared our preferences with the team and they were able to fine-tune the available options perfectly. After making the purchase decision and returning to Spain, we only needed three days to complete all the paperwork related to opening a bank account, obtaining the NIE, and signing before a notary. We were supported throughout the entire process and, most importantly, after the purchase has been finalized, they continue to offer full after-sales service and are always available for any questions. With Estrellas Properties, the impossible becomes possible. They have extensive knowledge and experience, which allows them to handle even situations that seem difficult to manage. A warm greeting to the whole team, and we wholeheartedly recommend them.

— Justyna

We found Estrellas thanks to the recommendation of two families who had purchased properties in Spain with very different profiles. We don’t like taking risks—we were looking for a safe investment for rental, one that also gave us flexible use as owners, along with property management service at the highest level. From our very first phone conversation, I knew it wasn’t an agency focused on quick transactions. Kamila, a co-owner of the agency, guides her clients through the entire selection process, bringing her expertise without putting any pressure on them. She presents the full range of possibilities, which makes it possible to make decisions with complete confidence. She’s always available and responds quickly. And spending time with her is genuinely a pleasure—because besides being an excellent professional with access to the best properties, she’s also a fantastic person. I truly recommend her! It’s been a real pleasure. Kamila, thank you so much!

— Agata Magda

We went to Benidorm looking to buy a property. After searching a long time we came across Estrellas and the moment we entered we couldn't have been more happier. Kamilla was sat at her desk and After telling her what we wanted for our money she couldn't have been more helpful. She arranged for us to see 5 properties the following day. After seeing the properties and choosing on one everything she done for us was amazing. Within 3 days we had opened a bank account, sorted out our NIE numbers. We left Kamilla sorting things out as we travelled back to the UK. Everything was sorted within about 3 weeks and we couldn't be happier in our new place. I also have to say that Marina the solicitor was amazing too. I would highly recommend this place and if i could give more than 5 stars I would. Thank you once again

— Susan Vaughan

Working with Ms. Kamila is a real pleasure. Her level of professionalism, calm demeanor, and positive attitude are truly impressive. I wish there were more people like this in the world! The entire process was carried out in an exemplary manner, despite unforeseen events and unexpected situations (beyond our control). I highly recommend her—100% 😊

— Krzysztof Pe

I strongly recommend Kamila and her team. Excellent collaboration throughout the property purchase and help with absolutely everything—also after the purchase. If anyone wants to buy an apartment or a house in this part of Spain, this is undoubtedly the right real estate agency.

— Piotr Turski

The best agency for me. Even in difficult transactions, and even after the purchase, they continue to support and help. That’s why the 5 stars are more than deserved.

— Adam Nawotka (Myjnia 24H Ciechanów)

Kamila was very kind and professional. Thank you very much

— Daniel Ekhlaghy

A perfect experience from the very first moment I could trust Camila; she advised me and helped me with everything. Very sincere.

— Yolanda Sanchez Martinez

They are reliable, always available 7 days a week, expert in every area of Real Estate, honest, keen, committed, always standing up and working in the client's interest, thorough, fast and there never put pressure or stress on the client. They are multilingual and spend, give the client all the time needed there is never stress or rush. Beyond these special qualities they are very involved with their clients as people and nothing is too much for them. We have experience with estate agents in Spain and can sincerely recommend Estrella Properties by Kamila Pointek. Do not look for another estate agent if you want to buy or sell something but contact Estrella Properties directly and you will not regret it. We will definitely come back to Kamila Pointek for the next Real Estate Transaction in Spain. Do not hesitate any longer and contact them by phone today! 5 Stars should be 10 Stars!

— Richard van Huizen

Benidorm’s best real estate agency, Marina and Camila helped me find my dream home. Thanks a thousand.

— Inmaculada Sanchez

I came across Estrellas Properties’ office by chance. Marina, the agency’s lawyer, solved a lot of issues with my property purchase. Without a doubt, she’s a true professional! I’d recommend this agency to all my family and friends.

— José Rodríguez

Kamila literally fell from the sky! After many bad experiences with other agencies, we finally got it 🥳 we signed the notarial deed. Without Kamila’s experience and patience, we wouldn’t have pulled it off. Thank you so much—this is a shared success 💪🏼

— Eliza Debicka

I wholeheartedly recommend it! Excellent collaboration—everything was explained clearly and carried out in a very professional manner. Thank you very much for everything; we’re very happy to have arrived exactly here. Kind regards!

— Patryk Borkowski

We recently purchased a home through Estrellas Properties in Benidorm and had the absolute pleasure of working with Kamila. From the very beginning, she was incredibly helpful, professional, and trustworthy – a true gem in the real estate world. Kamila guided us through every step of the process with patience and care, always making sure we were informed and comfortable. She was available whenever we had questions and truly went above and beyond to make the experience smooth and stress-free. What stood out most was her continued support even after the sale was completed. She didn’t just disappear once the deal was done she stayed in touch and continued to offer advice and assistance whenever we needed it. We would also like to extend our heartfelt thanks to Marina, our solicitor, who played such an important role throughout the process. Her attention to detail, clear communication, and professionalism gave us great peace of mind. Marina was always available to explain things clearly an

— Bora Topkaya

Highly professional and with excellent communication.

— Tomoroga Laurentiu

I’m very satisfied with my collaboration with this company, and especially with Kamila. Despite a few surprises during the property purchase, Kamila took care of everything the way she should. Throughout the entire search and purchase process, I felt well looked after and attended to. In the future, if I buy another property again, it will definitely be with them!

— Rafał M.

During our search for an apartment, we had the help of Kamilla. We’ve found her to be a very reliable real estate agent who makes sure that the entire buying process, in the broadest sense, runs smoothly. She thinks proactively, lays out the options available, but at no point does she come across as pushy. She has a great knowledge of the market and maintains good relationships with many other colleagues in the area. In addition, Kamilla is a very pleasant person who stays herself in every situation. Without a doubt, we would choose her again without hesitation. It’s also very helpful that, besides Spanish and Polish, she speaks English.

— Esther

Fantastic service—professional, fully committed, with support at every stage. Everything was handled quickly and efficiently, and on top of that, with great kindness and approachability. I highly recommend it.

— Hanna Pelec

With all my heart, I can recommend Estrellas Properties. The wonderful Mr. Władysław accompanied us throughout the entire process, from choosing the property to the very end… or better yet, without an end, because we’re still counting on his help in everything. And for quite some time now, we’ve been happy owners of a property in Spain. The best, without a doubt.

— Marzena Bochen

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Buying Property in Spain on Costa Blanca - Guide for UK and International Buyers

Find your home on the Costa Blanca

Introduction

Differences between new-build properties and second-hand homes

Actual purchase costs and expense structure in Spain

Beyond the tax, there are other necessary costs that are part of the process:

Real example - primary market (new construction)

Real example - secondary market (resale)

Featured properties

Required documentation and legal verification

The N.I.E. number and opening a bank account

Find your home on the Costa Blanca

Financing - mortgage process

Officially registered real estate agency in Spain

Full purchase process of buying in Spain

Obligations and costs after purchase in Spain

Profitability, Rent and Use of the Property

Importance of the agency and professional support

Our team

Our clients, our best reference

Contact us

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