Spain · buyer's guide
Taxes and costs of buying property in Spain in 2026
In short. In the Valencian Community (Alicante, Torrevieja and the whole Costa Blanca), a resale buyer pays ITP transfer tax at 9% on purchases from 1 June 2026, or 11% on the whole price if it is over 1 000 000 €. A new build bought from a developer carries 10% VAT and 1.4% AJD stamp duty. Add about 1% for the notary and registration. In total, budget roughly 10% on top for a resale and 12.4% for a new build.
This article covers taxes for non-resident buyers in the Valencian Community. It is not tax advice: rates change, so before buying check the laws linked at the end or speak to a tax adviser.
Why the rates depend on the region
The resale transfer tax (ITP) and the stamp duty (AJD) are national taxes in Spain, but their rates are set by the autonomous communities. That is why the same apartment would be taxed differently in Madrid and in Alicante. Almost our entire catalogue, 131 of 139 properties, is in the province of Alicante, which is part of the Valencian Community. All the figures below apply there.
VAT on new builds, by contrast, is the same across the country: 10% on housing under Article 91 of the VAT Act.
Resale: ITP transfer tax
The Valencian Community's Ley 5/2025 (Article 33) cut the general ITP rate from 10% to 9% from 1 June 2026. The same paragraph contains an important catch: if the price of the apartment or house is above 1 000 000 €, the rate is 11%, and it applies to the whole price, not only to the part over a million.
| Property price | ITP rate | Tax |
|---|---|---|
| 150 000 € | 9% | 13 500 € |
| 250 000 € | 9% | 22 500 € |
| 1 000 000 € | 9% | 90 000 € |
| 1 200 000 € | 11% | 132 000 € |
The law also has reduced rates (for under-35s buying a first home, large families and others), but they are tied to a main residence and almost never apply to a buyer who lives outside Spain.
ITP is paid on form 600 within one month of signing the deed. In practice your lawyer or gestor (an administrative agent) files it under your power of attorney straight after the notary.
If the purchase was signed before 1 June 2026, the old 10% rate applied. For calculations today, use 9%.
New build: VAT and AJD
When you buy an apartment from a developer (the first transfer of a new home), you pay two taxes instead of ITP:
- VAT (IVA) at 10% on housing, including up to two parking spaces and storage rooms sold together with the apartment. The tax is included in your payments to the developer.
- AJD stamp duty on the notarial deed. In the Valencian Community it is 1.4% for purchases from 1 June 2026 (Article 34 of Ley 5/2025); before that it was 1.5%.
If the developer sells off-plan with stage payments, VAT is charged on each instalment. Buying from a private owner in a building completed a few years ago counts as a resale, so ITP applies.
Notary, Land Registry and other costs
The notary and the Land Registry charge official scale fees (Real Decreto 1426/1989 and 1427/1989). The amount rises with the price, but not proportionally. For budgeting, allow about 1% of the price for both together; the notary gives you the exact figure before signing.
Everything else depends on your situation:
| Cost | When it arises | How it is calculated |
|---|---|---|
| Lawyer | almost always on a remote purchase | agreed fee, often fixed or a percentage of the price |
| Power of attorney | if you are not flying in | at a Spanish consulate, or at a notary at home plus apostille and translation |
| NIE | always | fee on form 790, code 012; the form calculates the amount itself |
| Valuation (tasación) and bank fees | if you take a Spanish mortgage | at the bank's rates |
| 3% withholding | if the seller is a non-resident | not a cost to you, but part of the price that you pay to the tax office instead of to the seller |
Example: what it all adds up to
Let's take three typical Costa Blanca cases. The median price in our catalogue for Torrevieja is currently 169 900 €, so the resale example is close to a real purchase.
| Resale, 170 000 € | New build, 300 000 € | Villa, 1 200 000 € (resale) | |
|---|---|---|---|
| Purchase tax | ITP 9% = 15 300 € | VAT 10% = 30 000 € | ITP 11% = 132 000 € |
| AJD stamp duty | none | 1.4% = 4 200 € | none |
| Notary and registry, about 1% | about 1 700 € | about 3 000 € | about 12 000 € |
| On top of the price | about 17 000 € (10%) | about 37 200 € (12.4%) | about 144 000 € (12%) |
| Total | about 187 000 € | about 337 200 € | about 1 344 000 € |
Note the last column: once the price goes even slightly above 1 000 000 €, the rate jumps from 9% to 11% on the whole amount. An apartment at 1 000 000 € means 90 000 € in tax, while one at 1 010 000 € means 111 100 €.
On every listing in our catalogue we show an "≈ total with costs" line calculated at exactly these rates: 10% for resale and 12.4% for new builds.
What the seller pays, not you
Listings and contracts sometimes muddle this, so in brief:
- Plusvalía municipal, the tax on the increase in land value, is paid by the seller by law (Article 106 of the Local Finance Act).
- The seller's capital gains tax. If the seller is not resident in Spain, the buyer withholds 3% of the price and pays it to the tax office on form 211 within one month. This is an advance on the seller's tax and does not come on top: you simply pay the seller 3% less. But if you forget, the tax office can claim the amount from you.
- The previous owner's community debts and IBI. The seller clears them before completion; otherwise the apartment itself stands as security for community debts. The certificates are obtained before signing.
Annual running costs
Once you own the property, regular payments begin. Work them out in advance, especially if the apartment will stand empty for part of the year.
| Payment | Paid to | How it is calculated |
|---|---|---|
| IBI, the property tax | the town hall | a percentage of the cadastral value (valor catastral); by law between 0.4% and 1.1% for urban housing, with the rate set by the municipality |
| Rubbish collection (basura) | the town hall or its contractor | municipal rate, billed separately |
| Community fees (comunidad) | the owners' community | according to the community budget; depends on pool, garden, lift and security |
| Non-resident income tax (IRNR) | the state, form 210 | see below |
| Insurance | the insurer | under your policy; compulsory if you have a mortgage |
The cadastral value is usually well below the market price, and it is shown on the IBI receipt. Ask the seller for that receipt before you pay a deposit, and you will know your annual taxes in advance.
Non-resident tax if the apartment is not let
Even if you don't let the property, Spain assumes it earns you an income. This deemed income equals 1.1% of the cadastral value if the municipality has revised cadastral values since 2012, or 2% otherwise. It is taxed at 24% for residents of non-EU countries (Armenia, Russia, Kazakhstan) and 19% for residents of the EU and EEA. No expenses can be deducted.
Example: cadastral value 60 000 €, rate 1.1%. Deemed income is 660 €, tax at 24% = 158.40 € a year.
If the apartment is let
Then the tax is paid on the rental income. For residents of non-EU countries the rate is 24% of gross income with no deduction of expenses. EU and EEA residents pay 19% and can deduct expenses. For the days when the apartment is not let, the deemed income from the previous section still applies.
Short-term holiday lets in the Valencian Community also require registration in the tourism register. That is a separate topic, covered in more detail in our questions about buying.
The "100% tax on foreigners": what it is
There is no such tax at present. In May 2025 a bill (122/000196) for a tax of up to 100% on home purchases by non-EU nationals was introduced in the Spanish Congress. It was never even taken into consideration, and after parliament was dissolved on 6 October 2026 (with elections called for 29 November 2026) it lapsed. The new parliament could table a similar bill, but any such tax could only apply once a law is passed and published in the official gazette, the BOE. The rates that apply today are set out above. Before every purchase we check the rules in force and tell you if anything is changing.
How to set your budget
A simple rule for the Costa Blanca: add 10-11% to the price of a resale and 12.5-13% to a new build if you hire a lawyer and grant a power of attorney. It also works in reverse: if you have 200 000 € including taxes, look for a resale up to about 180 000 €. You will find such options in our selections under 150 000 € and under 200 000 €.
The purchase itself is described step by step in how to buy property in Spain remotely, and the NIE number, without which you cannot pay any of these taxes, in NIE and a Spanish bank account.
Want an exact calculation for a specific property, including the lawyer, the power of attorney and the annual payments? Send us a request and we will work it out and send it with a shortlist.