Buying a property in Spain requires a fundamentally different approach than in Belgium or the Netherlands. Whereas in the home country the notary has a controlling role, in Spain the responsibility for legal checks lies entirely with the buyer.
In this article, we go through the entire buying process at the Costa Blanca, from cost structure to property registration.
What costs are involved in buying a house in Spain?
Count on an average of 12.5% to 15% in extra costs on top of the purchase price (Cost of Buyer). Many buyers make the mistake of looking only at the asking price, while the tax burden and ancillary costs are substantial. The exact rate depends on the type of property (new construction or existing) and the region. Specific rates apply in the Comunidad Valenciana (Costa Blanca).
The fee structure can be divided into taxes, notary fees, registration fees and legal fees.
Difference Existing Construction vs. New Construction
Existing homes (Resale): You do not pay VAT, but Transfer tax (ITP). In Costa Blanca, this 10-11%.
New build (Buy on plan): You pay 10% VAT (IVA) plus one Stamp duty (AJD) from 1,50%.
Read more about additional taxes and fees.
Calculation example: Purchase Holiday home Alicante (€160,000)
To make your budgeting concrete, here is a realistic cost estimate for an existing €160,000 home in the Alicante region:
| Cost item | Estimated Amount | Notes |
| Transfer tax (ITP) | € 16.000 | 10% of the purchase price (Costa Blanca) |
| Notary and land registry fees | € 1.000 – € 2.000 | Depending on number of pages of deed and value |
| Utilities | € 100 – € 600 | Transferring water/electricity contracts |
| Legal guidance | Variable | Approx. 1% + VAT (average market standard) |
| Total additional costs | Approx. €18,000 - €20,000 |
Expert Insight: "Experience shows that 1 in 5 foreign buyers in Spain incur unforeseen costs due to lack of proper budget analysis beforehand. With a Spanish mortgage, take into account additional filing fees and valuation costs."
The Spanish Buying Process in 6 Steps
The purchase process on the Costa Blanca follows a set legal structure. Follow these steps strictly to minimise risks.
Step 1: The Reservation Contract (Contrato de Reserva)
The reservation contract takes the property off the market in exchange for a deposit of €3,000 to €10,000. This is the first legal commitment you make.
Note: If you change your mind without a valid legal reason, you will lose this deposit irrevocably.
Opinion: Never sign a reservation contract without a lawyer conditions precedent has added. If during the Due Diligence (see step 2) construction violations or debts surface, you should be able to recover your reservation fee.
Read more about the reservation contract and the first deposit.
Step 2: Legal Research
Legal support is necessary because the Spanish notary does not check the property for illegality or debts. Unlike in Belgium, the notary in Spain has no obligation to investigate the urban planning condition.
Our specialised lawyers check for you:
Property title: Is the seller the rightful owner?
Cargas (Charges): Are there any mortgages, attachments or outstanding debts on the property?
Urbanisation: Are there any building violations? Is the house built legally?
Bank guarantee: Crucial in new construction; this protects your advances if the promoter goes bankrupt.
Find out more about the job of a lawyer in Spain.
Step 3: Apply for NIE number
The NIE number (Número de Identificación de Extranjero) is your unique tax identification number in Spain. You need this number for:
Payment of transfer taxes.
Payment of taxes (including for non-residents).
Connecting utilities (water, electricity, internet).
How to apply?
This can be done through the local police station (form EX-15), the Spanish consulate in Brussels/Amsterdam (count on a 2-month wait), or most quickly through a notarised power of attorney.
Step 4: The Compromise (Contrato Privado de Compraventa)
After a positive examination, the private purchase contract follows, where you usually pay 10% of the purchase price. This contract is binding. The remaining amount will be paid upon notarization (within 2 to 12 weeks).
Warning: Don't skip the reservation contract stage to go straight to compromise without legal research. You risk buying a property with legal defects that you will later pay for yourself. Using a concrete case, we explain why it is best not to sign the compromise immediately.
Step 5: Payments
Our Spanish third-party account is required for the final payment and subsequent utility direct debits.
Utility companies accept SEPA payments from Belgium and the Netherlands. A Spanish account is not required after purchase. However, you pay the buyer with a Spanish bank cheque, for which you can use our Spanish third-party account.
Step 6: The notarial deed (Escritura)
The official transfer of ownership takes place at the notary via the signing of the Escritura de Compraventa.
At this point, you pay the residual balance (via bank cheque) and receive the keys. You will immediately receive a Copia Simple (provisional deed).
Tip: before going to the notary, it is usual to visit the property again and check for visible defects.
After the notary:
The notary's job stops after the signing. Confianz takes care of the crucial final step: registration in the Registro de la Propiedad (Property Register) and the Land Registry. Only after this registration is your property right opposable to third parties.
Frequently asked questions (FAQ)
1. Is a lawyer mandatory when buying a house in Spain?
Legally, it is not compulsory, but it is highly recommended. The Spanish notary does not check the legality of the property. Without a lawyer, you risk buying an illegal property or one with debts.
2. What is the difference between ITP and IVA in Spain?
ITP (Impuesto sobre Transmisiones Patrimoniales) is the transfer tax on existing homes (10-11% in Costa Blanca). IVA (Impuesto sobre el Valor Añadido) is the VAT you pay on new build properties (10%), on top of which there is a stamp duty (AJD) of 1.5%.
3. Can I buy a house in Spain without an NIE number?
Yes, but then you cannot pay transfer taxes. This will cause problems when registering your title. You can already view houses and sign a reservation, but ideally you should have the NIE number before the official transfer.
Read more about how to apply for a NIE number.
4. What is the total cost of buyer in the Valencia region?
In the Valencia region (including Costa Blanca), factor in a mark-up of 14% to 15% on top of the purchase price. This includes 10% tax and 4-5% for notary, registration and legal fees.
About the author: Glenn Janssens is a lawyer specialising in Spanish real estate transactions and tax regulations.
Since 2017, he has been helping Belgian and Dutch individuals and entrepreneurs safely purchase and structure real estate in Spain. He guides files from A to Z: from due diligence, ownership and tax control to estate planning and optimisation for residents and non-residents.
Thanks to his years of experience, hundreds of handled files and focus on transparent communication, Glenn makes complex Spanish legislation understandable and practically applicable for every property buyer.
