In this article, we’ll break down all the legal fees, taxes, and expenses you should factor in when buying property in Costa Blanca.

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Property taxes in Spain: new build vs resale

Depending on whether you’re purchasing a new build or a resale property, the taxes will vary.

For resale properties:

• Property Transfer Tax (Impuesto de Transmisiones Patrimoniales - ITP):
  In the Valencian Community, this is typically 10% of the declared purchase price.
  Reduced rates may apply for large families or young first-time buyers.

For new build properties:

• VAT (IVA - Value Added Tax):
  Charged at 10% of the purchase price.
• Stamp Duty (Actos Jurídicos Documentados - AJD):
  In the Valencian Community, this is 1.5% of the property value.

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Additional costs when buying a property in Spain

Apart from the taxes, there are several mandatory and optional costs that make up the full purchase budget:

1. Notary fees
The notary prepares and certifies the public deed (escritura pública). Fees depend on the price and complexity of the transaction, usually ranging from €600 to €1,200.

2. Land Registry fees
After signing, the property must be registered in your name. Fees vary, generally between €300 and €600.

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3. Property valuation
If you apply for a mortgage in Spain, the bank will request an official valuation. This usually costs €250 to €500.

4. Mortgage costs (if applicable)
Includes:

• Mortgage opening fees (if charged)
• Notary and registration fees related to the loan deed
• Required insurance policies (home insurance and life insurance)

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How much should you add to your budget?

As a general rule, foreign buyers should add between 12% and 15% on top of the property price to cover taxes and additional costs.

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Who pays what: buyer vs. seller

In most cases, the buyer is responsible for all purchase-related costs.
The seller, on the other hand, typically pays:

• The municipal capital gains tax (plusvalía)
• Any mortgage cancellation fees, if applicable

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Why understanding the full cost is so important

Knowing the real costs helps you:

• Create a realistic budget
• Avoid surprises
• Negotiate more confidently
• Make smarter property decisions

At Enjoy Benidorm, we provide full support and transparency so that every buyer —local or international— understands exactly what they’re paying for.

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Trust Enjoy Benidorm: Your Real Estate Agency in Costa Blanca

Buying a property in Spain —and especially in Costa Blanca— is an excellent lifestyle and financial decision, but it must be made with clear knowledge of the full cost.

Enjoy Benidorm, as a trusted real estate agency guides foreign buyers every step of the way: from initial questions to key handover, helping you understand taxes, legal fees and financing options.

💬 Need help calculating your purchase costs in Spain?
Contact us for expert, personalised advice in your language.

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