Why the Costa Blanca Leads Europe for Foreign Buyers
- ITP cut to 9% from 1 June — the biggest Valencia property tax reform in over a decade.
- Alicante price growth +15.3% in 2025 · +5–9% forecast 2026 — still affordable vs Costa del Sol.
- Northern Costa Blanca positioned as premium alternative to crowded Marbella/Mallorca.
ITP Cut to 9% from 1 June 2026 — The Key Numbers
Ley 5/2025 of the Comunitat Valenciana reduces ITP from 10% to 9% for resale properties up to €1,000,000 from 1 June 2026. AJD falls from 1.5% to 1.4% simultaneously.
Critical rule: The applicable rate is determined by the DATE OF THE NOTARIAL DEED — not the reservation contract or private purchase agreement date.
| Property Price | ITP Before 1 Jun 2026 (10%) | ITP From 1 Jun 2026 (9%) | Saving |
|---|---|---|---|
| €150,000 | €15,000 | €13,500 | €1,500 |
| €250,000 | €25,000 | €22,500 | €2,500 |
| €400,000 | €40,000 | €36,000 | €4,000 |
| €600,000 | €60,000 | €54,000 | €6,000 |
| €800,000 | €80,000 | €72,000 | €8,000 |
| €1,000,000 | €100,000 | €90,000 | €10,000 |
| €1,500,000 (>€1M bracket) | €165,000 (11%) | €165,000 (11% — no change) | €0 |
Total Purchase Costs: Costa Blanca 2026 (After 1 June)
| Cost Item | €200K Apartment | €350K Villa | €600K Villa | €1.2M Luxury Villa |
|---|---|---|---|---|
| ITP (9% or 11%) | €18,000 | €31,500 | €54,000 | €132,000 (11%) |
| Notary | ~€800 | ~€1,000 | ~€1,400 | ~€2,200 |
| Land Registry | ~€400 | ~€600 | ~€800 | ~€1,500 |
| Gestoría | ~€600 | ~€800 | ~€1,000 | ~€1,500 |
| Lextax legal fee | from €1,500 | from €2,000 | from €2,500 | from €3,500 |
| NIE (if needed) | ~€150 | ~€150 | ~€150 | ~€150 |
| TOTAL COSTS | ~€21,450 (~10.7%) | ~€36,050 (~10.3%) | ~€59,850 (~10.0%) | ~€140,850 (~11.7%) |
| TOTAL OUTLAY incl. price | ~€221,450 | ~€386,050 | ~€659,850 | ~€1,340,850 |
All Taxes: Buying & Owning Property in Valencia 2026
| Tax | When | Rate 2026 | Who Pays |
|---|---|---|---|
| ITP | Purchase of resale property | 9% (≤€1M from 1 Jun) · 11% >€1M | Buyer |
| IVA | Purchase of new-build from developer | 10% | Buyer |
| AJD | New-build + mortgage deeds | 1.4% (from 1 Jun 2026) | Buyer |
| Plusvalía Municipal | Property sale — land value increment | Variable (cadastral + years held) | Seller (buyer as substitute if non-resident) |
| IBI — Annual Council Tax | Every year as owner | 0.4–1.1% of cadastral value | Owner on 1 Jan each year |
| IRNR / Modelo 210 | Annual — non-resident empty/personal-use | 24% × 1.1–2% cadastral (non-EU) · 19% (EU) | Non-resident owner |
| Wealth Tax / Patrimonio | Annual — assets >€700K (non-res) / >€1M (Valencia res) | 0.2–3.5% progressive | Owner at 31 Dec |
| Inheritance / Gift Tax (ISD) | On inheritance or gift | Valencia: 99% relief (children/spouse) | Heir or beneficiary |
| Modelo 211 — 3% Retention | When buying from non-resident seller | 3% of purchase price | Buyer (pays to AEAT) |
Jávea & Costa Blanca North: 2026 Market Prices
| Location | Avg Price/m² (2026) | 2025 Growth | 2026 Forecast | Top Buyer Nationalities |
|---|---|---|---|---|
| Jávea — Puerto (marina) | €4,753/m² | +12–15% | +8–12% | Dutch, British, Norwegian, German |
| Jávea — Balcón al Mar / Cap Martí | €4,378/m² | +10–14% | +8–12% | Dutch, Norwegian, British |
| Jávea — Montañar/Arenal (beach) | €4,226/m² | +10–12% | +7–10% | Dutch, British, Belgian |
| Jávea — Old Town (Centro) | €3,279/m² | +8–10% | +5–8% | British, German, Spanish |
| Jávea — Montgó / Adsubia | €3,470–3,552/m² | +8–11% | +6–9% | Dutch, British, German |
| Moraira | €2,500–€4,500/m² | +10–13% | +6–9% | Dutch, Belgian, German |
| Altea | €2,800–€3,500/m² | +9–12% | +6–9% | British, Dutch, Scandinavian |
| Dénia | €2,800/m² | +8–11% | +5–8% | German, Dutch, British |
| Calpe | €2,800/m² | +8–10% | +5–8% | British, German, Dutch |
| Alicante City | €2,500/m² | +10–12% | +6–9% | French, British, Dutch |
| Torrevieja | €2,300/m² | +8–10% | +5–8% | British, Scandinavian, Belgian |
| Benidorm | €3,200/m² | +7–10% | +5–8% | British, Norwegian, Dutch |
Step-by-Step: Buying Property on the Costa Blanca as a Foreigner
| Step | Action | Timeline | Lextax Role |
|---|---|---|---|
| 1 | Engage Lextax as your independent legal adviser | Before any offer | Full representation from Day 1 |
| 2 | Obtain NIE number | 3–8 weeks; POA via Lextax | NIE application management |
| 3 | Open Spanish bank account | 1–2 weeks | Bank referral & document support |
| 4 | Legal due diligence: nota simple, debts, planning, IBI, community fees | 1–2 weeks | Full property legal due diligence report |
| 5 | Sign arras (reservation): 3–10% deposit, fixes price & completion date | 1–2 weeks after due diligence | Contract review and negotiation |
| 6 | Check if seller is non-resident → Modelo 211 (3% retention) | Before signing deed | Retention identification and filing |
| 7 | Sign escritura (deed of purchase) at notary — balance payment | 4–8 weeks after arras | Notary attendance and deed review |
| 8 | Pay ITP 9% (resale) or IVA+AJD (new-build) within 30 days | Within 30 days of deed | Tax filing and payment |
| 9 | Register title at Land Registry | 2–6 weeks after deed | Registry management |
| 10 | Transfer utilities, IBI direct debit, community notification | Post-completion | Post-completion checklist |
| 11 | Annual Modelo 210 — imputed income (first deadline 20 Jan 2027) | Annual | Ongoing IRNR compliance |
Frequently Asked Questions
What is the ITP property purchase tax in Valencia/Costa Blanca in 2026?
From 1 June 2026, the ITP on resale properties in the Comunitat Valenciana is 9% for properties up to €1,000,000 (Ley 5/2025). Properties above €1M pay 11%. Before 1 June 2026 the rate is 10%. New-build properties pay 10% VAT + 1.4% AJD stamp duty. The applicable rate depends on the date of the notarial deed.
Can non-EU foreigners (British, American, Australian) buy property on the Costa Blanca?
Yes — non-EU nationals face no restrictions buying Spanish property. No minimum investment, no extra taxes vs EU buyers. Requirements: NIE number and Spanish bank account. Property purchase no longer grants residency (Golden Visa real estate route closed April 2025).
How much does it cost in total to buy a €400,000 property on the Costa Blanca in 2026?
After 1 June 2026: ITP 9% = €36,000 + notary ~€1,000 + registry ~€600 + gestoría ~€800 + Lextax from €2,000 = ~€40,400 total costs (~10.1%). Total outlay: ~€440,400 cash.
Does Wealth Tax apply if I buy a property in Valencia as a non-resident?
Non-residents pay Wealth Tax on Spanish assets above €700,000 per person. A couple buying jointly get €700,000 each — so up to €1,400,000 in joint Spanish property before any Wealth Tax. Valencia residents benefit from a €1,000,000 exemption (Ley 5/2025). Mortgage debt is deductible.
Should I wait until after 1 June 2026 to sign to save on ITP?
For a €500,000 property the 1% saving is €5,000. If you are ready to complete, waiting saves real money. But do not let the tax saving delay a genuinely good purchase — prices are rising 8–12% in prime locations.
Why Choose Lextax for Your Costa Blanca Purchase
Lextax Consulting SLP is based in Jávea (Xàbia), Alicante — at the heart of the Northern Costa Blanca market. Led by Juan José Martínez (Abogado y Asesor Fiscal), Lextax provides full legal and tax services for international buyers across Valencia, Alicante, and Castellón.
- Full property purchase legal representation (offer → Land Registry)
- NIE & Spanish bank account management
- Independent due diligence (nota simple, planning, debts)
- ITP 9% filing & payment (post-1 June 2026)
- Modelo 211 — 3% retention management
- Annual Modelo 210 compliance
- Wealth Tax planning & optimisation
- Inheritance Tax / Spanish wills
- Beckham Law for qualifying new residents
- Post-Brexit guidance for British buyers
