Real Estate Purchase Expenses in the Valencian Community (2026): Tax Breakdown for Non-Residents

Buying a property in the Costa Blanca or anywhere in the Valencian Community is an exciting financial project, but the tax and indirect burden often raises questions among international buyers. How much do the additional costs beyond the agreed price actually amount to?

For a non-resident buyer, the total sum of taxes, notary fees, and administrative procedures usually ranges between 10% and 13% of the property value. Below is a detailed breakdown updated for 2026 to ensure a transaction without surprises.

1. Taxes Based on Property Type (New Build vs. Resale)

The main tax impact depends directly on the condition of the property:

Resale Property (Second-Hand): Property Transfer Tax (ITP)

When acquiring a second-hand property, the applicable tax is the ITP, managed by the Valencian Tax Agency (ATV):

• General rate: 10% on the Cadastral reference value (or the purchase price if higher).

• Reduced rates: An 8% rate applies in specific cases (young buyers under 35, subsidized housing, or individuals with disabilities), provided the corresponding tax residence conditions are met.

New Build Property: VAT (IVA) and Stamp Duty (AJD)

If purchasing directly from a developer or builder:

• Value Added Tax (VAT / IVA): 10% as a general rule (or 4% for special regime subsidized housing).

• Stamp Duty (AJD): 1.5% for the formalization of the public purchase deed.

2. Notary, Land Registry, and Legal Fees

In addition to regional and state taxes, operational costs are required to formalize and register ownership:

• Notary Fees: Regulated by official state tariffs. They usually range between €600 and €1,200, depending on the property value, length of the deed, and authorized copies requested.

• Land Registry: Registering the title deed guarantees legal security against third parties. Official costs typically fall between €400 and €800.

• Legal / Conveyancing Agency Fees: For non-resident buyers, hiring an independent lawyer or specialized conveyancing agency is essential for tax settlement (Forms 600 or 620), NIE (Foreigner Identification Number) processing, and verifying property encumbrances. This service usually costs between €1,000 and €1,500, or 1% of the sale price.

3. Essential Requirements and Administrative Costs for Non-Residents

To complete the signing before a notary in Spain as a non-resident, several mandatory procedures are required:

• Obtaining a NIE: Mandatory identification document to pay taxes and sign deeds.

• Opening a Spanish Bank Account: Necessary to issue the required cashier's checks on the day of signing and to pay taxes.

• Fiscal Representative: Recommended to handle notifications from the Tax Administration.

4. 3% Retention for Non-Resident Sellers

If the seller is also a non-resident in Spain, the law requires the buyer to retain 3% of the total purchase price and pay it directly to the State Tax Administration Agency (AEAT) using Form 211. This guarantees payment of Non-Resident Income Tax (IRNR) on behalf of the seller.

Need Expert Advice for Your Purchase on the Costa Blanca?

Navigating Spanish tax and administrative regulations doesn't have to be complex. At Bindley Properties, we guide international buyers and investors through selection, negotiation, and legal processing of properties in Moraira and the Costa Blanca, ensuring a transparent and secure transaction.