What are the costs of buying a property in Altea?

Anyone buying a property in Altea or on the Costa Blanca should account for additional expenses on top of the purchase price. These include taxes, notary fees, legal assistance, and—when buying a new build—VAT instead of transfer tax. In this article, we provide a clear overview, including an example calculation based on a property priced at €850,000.

Not familiar with Altea yet? Also read: All About Altea – Living, Buying & Investing

How much extra do you pay on top of the purchase price?

Note: This information applies specifically to the Costa Blanca region (Comunidad Valenciana), where Altea is located. Other regions in Spain may apply different tax rates and additional costs. Always consult a local expert when buying outside this area.

In Spain, buyers should typically budget 12% to 14% in additional costs, depending on whether it is a resale or new-build property. These percentages are based on real-life cases and confirmed by multiple agencies on the Costa Blanca.

Read more about the market: Costa Blanca Real Estate Prices

Property Type	Total Additional Costs (Average)
Resale Property	12%
New-Build Property	13% to 14%

Overview of the main cost components

1. Transfer Tax (ITP) – Resale Properties Only

The Impuesto de Transmisiones Patrimoniales (ITP) is 10% on the purchase price up to €1,000,000. For the amount above one million, an increased rate of 11% applies.

2. VAT (IVA) + Stamp Duty (AJD) – New Builds or Developer Sales

For new-builds, a 10% VAT applies when the property and land are purchased under one deed. In that case, you also pay 1.5% Stamp Duty (AJD).

If the land is bought separately from a private seller, 10% or 11% ITP applies. If it is purchased from a company, 21% VAT is charged, plus 1.5% AJD.

3. Notary & Registration Fees

These costs depend on the property price and typically range from 0.3% to 0.5%, with 0.5% being the common maximum.

More about seller-related costs? Read our seller guide

4. Legal Assistance & Translations

Legal fees are usually between 0.5% and 1% of the purchase price, depending on the services you require. This includes due diligence, contract review, notary support, and translations.

At Altea Moraira Villas, we work with Dutch-speaking legal partners who offer transparent pricing.

5. NIE Number & Bank Account

An NIE number (tax ID for foreigners) is mandatory. The cost for application and handling is between €100 and €450. Opening a Spanish bank account usually comes with minimal cost.

6. Optional Extras

Power of Attorney (if not attending the notary in person): approx. €250–500
Mortgage costs: bank charges, valuation, and admin fees (if applicable)

Example Calculation: Property Worth €850,000

Buying a Resale Property:

Transfer Tax (10%): €85,000
Notary & Registration (0.5%): €4,250
Legal Fees (0.5%): €4,250
NIE & Bank: approx. €300
Total Additional Costs: approx. €93,800
Total Investment: ~€943,800

Buying a New-Build Property:

VAT (10%): €85,000
Stamp Duty (1.5%): €12,750
Notary & Registration (0.5%): €4,250
Legal Fees (0.5%): €4,250
NIE & Bank: approx. €300
Total Additional Costs: approx. €106,550
Total Investment: ~€956,550

Who Pays What in Spain?

Unlike in some other countries, the buyer pays nearly all acquisition costs. The seller typically pays only the agent's commission and any municipal capital gains tax (plusvalía).

Transparency Prevents Surprises

At Altea Moraira Villas, we always provide a detailed cost breakdown before any reservation is signed. That way, you know exactly what to expect—no surprises.

Frequently Asked Questions About Property Purchase Costs in Spain

Are new-build costs higher than resale?

Yes. On top of 10% VAT, you also pay 1.5% AJD, and sometimes extra fees if the land is purchased separately. This usually results in higher costs for new-builds.

Are these costs tax-deductible?

For private buyers, purchase costs are not tax-deductible in Spain. However, they may impact wealth tax calculations or future capital gains tax.

Can I finance these costs with a mortgage?

Spanish banks generally only finance the purchase price, not the extra costs. Make sure to have sufficient funds to cover these additional expenses.

Want to know more about buying in Altea?
Check our dedicated page about buying property in Altea – featuring complete guidance and up-to-date listings.

New to the region?
Also read: The Costa Blanca in Spain – Why So Many Buyers Choose It

Author

Zino Vreysen

Marketing Strategist

Zino Vreysen is the Marketing Strategist behind both Moraira Invest Group and Altea Moraira Villas. He leads all digital marketing efforts across the group, bringing over 10 years of marketing experience and more than 6 years of hands-on real estate expertise to the table.