Buying a property on the Costa Blanca is an exciting decision, but it also involves a series of expenses that go beyond the price of the property itself. Knowing what these are before you begin the process allows you to plan your budget better and avoid surprises. That’s why this guide provides a clear explanation of all the real costs involved in buying a property and how to calculate them easily.
If you would like professional advice during your purchase, you can visit our About Us section and find out how we can assist you throughout the process.
Main taxes when purchasing a property
Taxes represent one of the most significant expenses. The amount depends on whether you are purchasing a new-build or second-hand property.
✔ Second-hand property
You must pay Property Transfer Tax (ITP).
In the Valencian Community, this usually ranges between 8% and 10% of the property price.
✔ New-build property
Here, VAT (10%) + Stamp Duty (AJD) is payable, which normally ranges from 1% to 1.5%.
Therefore, it is advisable to compare both markets not only in terms of price, but also in terms of associated costs.
Notary and registration fees
Notary fees depend on the value of the property, but are usually between €600 and €950.
For its part, Land Registry fees range from €400 to €700.
Although these are standard amounts, it is advisable to request a quote in advance to obtain a realistic estimate.
Mortgage expenses (if applicable)
If you are financing the purchase, there are additional costs to consider:
-
Property valuation (€300 – €500).
-
Additional notarised copies.
-
Compulsory insurance according to the bank.
In addition, it is advisable to compare several mortgage offers, as some institutions include additional fees or requirements.
Costs of renovations and improvements
Even if the property is in good condition, buyers often want to make minor improvements, such as painting, replacing woodwork or updating bathrooms and kitchens.
We therefore recommend setting aside an additional margin in your budget for these minor adjustments.
Approximate costs of common renovations:
-
General painting: €800 – €1,500.
-
Partial renovation of kitchen or bathroom: €1,500 – €4,000.
-
Window replacement: €300–€600 per unit.
Recurring expenses after purchase
Once you become a homeowner, you will have recurring expenses that you must also consider:
✔ Homeowners’ association
It depends on services such as swimming pool, lifts or gardens. It is usually between €25 and €100 per month.
✔ IBI (Property Tax)
It varies depending on the municipality, but it is usually between €250 and €600 per year.
✔ Supplies and maintenance
Electricity, water, internet and cleaning, according to usage and season.
Required documentation and approximate cost
Another part of the budget includes obtaining the mandatory documents to formalise the purchase:
-
Updated Simple Note
-
Energy Performance Certificate
-
Zero-coupon community debt certificates
-
Up-to-date supply certificate
Many of these documents are provided by the seller, but it is important to confirm this to avoid duplicate expenses.
How to calculate the total costs of your purchase
To accurately estimate the costs of buying a home, follow this outline:
-
Purchase price of the property
-
Taxes (ITP or VAT + AJD)
-
Notary and registry
-
Valuation (if there is a mortgage)
-
Renovations and improvements
-
Annual recurring expenses
-
Professional fees if you hire consultancy services
With this calculation, you will know how much you really need to complete the transaction.
If you would like to receive a personalised estimate tailored to your situation, please contact us and we will help you calculate it step by step.
Conclusion: buy with a clear view of your budget
Understanding the actual costs involved in purchasing a property is the best way to avoid unexpected surprises and make sound decisions. The Costa Blanca offers interesting opportunities, but calculating all the costs allows you to take advantage of them with peace of mind.
With a comprehensive analysis and the right professional support, you can plan your purchase smoothly and enjoy your new home in one of the most attractive areas of the Mediterranean.