Property buying costs in Alicante: taxes and fees for 2026

When you buy a second-hand home from a private seller you pay Impuesto sobre Transmisiones Patrimoniales (ITP) to the Generalitat Valenciana. Under Ley 5/2025 of the Generalitat, the general rate fell from 10% to 9% for deeds signed from 1 June 2026. A higher rate of 11% still applies to properties worth more than one million euros. Purchases signed before 1 June 2026 were taxed at 10%.

Two practical points:

• The tax base is not always the price. Since 2022 the minimum base is the Catastro reference value (valor de referencia) when it is higher than the declared price. On some older properties in Torrevieja the reference value can come close to, or exceed, a negotiated low price, so check it before signing.
• Reduced rates exist for certain buyers, such as young people, large families or people with disabilities buying their main home, but they have strict conditions and rarely apply to non-resident holiday-home buyers.

ITP is self-assessed and paid within one month of the deed, normally by your lawyer or gestoría.

If you buy a new home directly from the developer (the first transfer), there is no ITP. Instead you pay:

• IVA (VAT) at 10% of the price, charged by the developer on each payment, including the reservation and stage payments. Up to two parking spaces and a storage room sold together with the home follow the same 10% rate. Officially protected housing (VPO) has a super-reduced 4% rate.
• AJD (Actos Jurídicos Documentados), the stamp duty on the deed, paid to the Generalitat. In the Comunitat Valenciana it was 1.5% and has been 1.4% for deeds signed from 1 June 2026.

So on a new build the tax bill is roughly 11.4% of the price, against 9% on a comparable resale home. Many buyers still prefer new builds for the warranties, energy efficiency and lower maintenance in the first years, but it is worth doing the arithmetic.

Beyond tax, the fixed costs of a purchase are modest and fairly predictable:

• Notary. Fees follow an official scale based on price and the length of the deed. For a typical apartment expect several hundred euros up to roughly a thousand or a little more.
• Land Registry. Also on an official scale, usually somewhat less than the notary.
• Lawyer. Commonly around 1% of the price plus 21% VAT, sometimes with a minimum fee. It covers due diligence, contracts, tax filing and registration.
• Gestoría and translations. Small amounts for paperwork, sworn translations and powers of attorney if you are buying remotely.
• Valuation (tasación), only if you take a mortgage, a few hundred euros.

If you take a mortgage, Ley 5/2019 puts the notary, registry and gestoría costs of the mortgage deed and the mortgage stamp duty on the bank; you pay the valuation and your own copy of the deed.

Resale apartment in Torrevieja, 180,000 euros, deed after 1 June 2026:

• ITP 9%: 16,200 euros
• Notary and registry: roughly 1,300 to 2,000 euros
• Lawyer (1% + VAT): about 2,180 euros
• Total: roughly 19,700 to 20,400 euros, about 11% of the price

New build in Orihuela Costa, 300,000 euros, deed after 1 June 2026:

• VAT 10%: 30,000 euros
• AJD 1.4%: 4,200 euros
• Notary, registry and lawyer: roughly 5,000 to 6,000 euros
• Total: roughly 39,000 to 40,000 euros, about 13% of the price

These are illustrations, not quotes. For a specific property from our listings, ask us and we will prepare a cost sheet with your lawyer's figures.

Custom and law put several costs on the seller, not you:

• Plusvalía municipal (IIVTNU), the council tax on the increase in land value, is paid by the seller in a sale. Since the 2021 reform it is not due when there is no real gain, and the seller can choose the more favourable calculation method.
• Capital gains tax on the seller's profit.
• Estate agent's commission, normally included in the asking price on the Costa Blanca.

One exception involves you directly: if the seller is not tax resident in Spain, the buyer must withhold 3% of the price and pay it to the tax agency on the seller's account. If you forget, the tax agency can claim it from you and the property is liable. Your lawyer handles this at the notary. It also works in reverse: when you sell one day as a non-resident, 3% will be withheld from your price.

Once you own the property, budget for:

• IBI, the municipal property tax, calculated on the cadastral value (valor catastral) at the rate set by each council. Torrevieja and Orihuela set their own rates, so ask the seller for the last receipt.
• Rubbish collection fee, charged separately in many municipalities.
• Community of owners fees, which vary widely: a small block without a pool costs little, while complexes with pools, gardens, lifts and security in Orihuela Costa or Villamartín cost considerably more. Ask for the latest budget and the minutes of the last meetings to spot planned special levies.
• Home insurance, utilities and standing charges even when the home is empty.

Non-residents pay Spanish income tax on their property every year, even if it is never rented. The tax agency assumes a notional income (renta imputada) of 1.1% of the cadastral value if that value was revised in the last ten years, or 2% otherwise, prorated for the days you own it. The rate is 19% for residents of the EU/EEA and 24% for everyone else, including UK residents since Brexit.

Example: cadastral value 80,000 euros × 1.1% = 880 euros × 19% = about 167 euros a year. The return is filed on Modelo 210, by 31 December of the following year.

If you rent the property, you declare the actual rental income instead for the rented periods: EU/EEA residents can deduct related expenses, others are taxed on the gross income. Holiday lets also require a tourist licence and, since April 2025, the consent of the community of owners for new tourist rentals. Large estates may also face wealth tax; thresholds depend on your situation, so ask an adviser.