Legal & Tax Guide for Buying Property on the Costa Blanca as a Foreigner

Purchasing a property on the Costa Blanca —whether a contemporary new-build villa in Moraira, an exclusive estate in Jávea, or a sea-view residence in Dénia— is an inspiring journey. However, for international buyers, navigating the Spanish legal and tax framework can initially raise many questions.

At Bespoke Costa Blanca, we believe buying a home should be a seamless, transparent, and fully coordinated experience. That is why we manage and oversee the administrative and legal aspects of the transaction from start to finish.

Below, we outline the essential key points you need to know before buying your home in the Mediterranean:

1. The NIE (Foreigner Identification Number)

The NIE (Número de Identidad de Extranjero) is the mandatory tax identification number assigned to foreign residents and non-residents in Spain. It is strictly required for any financial transaction, such as signing property title deeds, setting up utilities, or paying taxes.

2. Opening a Spanish Bank Account

While not strictly mandated by law in every scenario, having a local bank account is essential in practice. It facilitates issuing the guaranteed bank cheques required on completion day at the Notary and allows for the easy setup of direct debits for utilities and local property taxes (IBI).

3. Taxes and Purchase Costs

When budgeting for your acquisition, you should account for official taxes and administrative fees on top of the agreed purchase price:

• Resale Properties: Subject to ITP (Transfer Tax), with a general rate of 9% in the Valencian Community for properties up to €1,000,000 (and 11% for values exceeding €1,000,000).

• New-Build Properties: Subject to 10% VAT (IVA) plus Stamp Duty (AJD), which stands at a general rate of 1.4%.

• Notary and Land Registry Fees: Approximately 0.8% to 1.5% combined (covers official Notary execution and formal entry in the Land Registry).

4. Property Legal Due Diligence

Before proceeding to the Notary, Bespoke Costa Blanca conducts thorough checks to ensure full legal and administrative compliance:

• Verification of charges, mortgages, or encumbrances via official Land Registry extracts.

• Confirmation of urban planning compliance with the relevant Town Hall.

• Ensuring all local council taxes (IBI) and community fees are fully up to date.

5. Completion at the Notary Public

The final stage of the buying process is the signing of the Public Title Deed (Escritura Pública de Compraventa) before a Spanish Notary Public. During this meeting, the remaining balance is settled, documentation is verified, and you receive the keys to your new home.

Your Trusted Partner on the Costa Blanca

At Bespoke Costa Blanca, we do more than just help you find exceptional architecture and prime locations; we coordinate the entire administrative process to give you complete peace of mind.

Are you planning to invest or find your home in Moraira, Jávea, or surrounding areas?

Contact our team today and we will be delighted to guide you through a tailored search.