BENIHOMES · COSTA BLANCA
How much does it cost to buy a home in Alicante? Taxes and expenses
The total cost of buying a home in Alicante is not a fixed percentage added to the asking price. Separate the agreed price, tax on the transaction, purchase deed and registration, finance and the expenses specific to the home. A line-by-line budget lets an international buyer compare a resale with a developer’s first supply without mixing purchase costs with mortgage costs.
Build the budget before paying a deposit
Purchase budget = agreed price + transaction tax + quoted conveyance costs + services you choose + funds for making the home usable. If borrowing, add the cash contribution and the loan costs that legally fall to you. Keep future ownership costs in a separate column. An advance provision of funds is not the final bill: ask for an itemised account and settlement.
| Item | When it arises | How to get a useful figure |
|---|---|---|
| Purchase price | Every sale | Accepted offer and contract; payment timetable |
| ITP or VAT; AJD if relevant | Depends on the supply and deed | Transaction classification, date, base and applicable rate |
| Purchase deed | If completed before a notary | Itemised notary estimate |
| Registration of purchase | To register title | Itemised Land Registry or conveyancer estimate |
| Valuation and other finance costs | If seeking a mortgage | Written bank terms and valuation quote |
| Translation, technical survey or advice | If you appoint a professional | Scope and written fee before instruction |
| Repairs, furnishing and utilities | Depends on condition and use | Inspection, reports, quotations and connection terms |
Tax depends on the transaction
The Spanish Tax Agency distinguishes a developer’s first supply from a resale: the former generally attracts VAT; an ordinary resale attracts ITP. A deed for a VAT-taxed first supply can also give rise to AJD. For a Valencian purchase taxed from 1 June 2026, our ITP, VAT and AJD guide sets out general rates, special cases and the reference-value issue. Never transfer a quote from one home to another: the legal classification, taxable date, base and buyer’s circumstances matter.
Conditional illustration: a resale with a verified €300,000 taxable base, subject to the general Valencian ITP rate of 9% and no special rate, would produce €27,000 ITP. The cash needed does not stop at €327,000: actual notary, registry, chosen services and any works or reserve remain to be added. For an ordinary developer’s first supply with €300,000 subject to general 10% VAT, the illustrative VAT alone is €30,000; assess AJD separately under the relevant legal case. These are teaching examples, not a quotation or tax assessment.
Notary, Land Registry and administration
The Spanish Notariado explains that notarial tariffs are regulated and an advance provision may cover taxes and third-party fees. Spanish Land Registrars describe registration and their own tariff. Before signing, request separate estimates for the purchase deed, registration, tax and administration. Check who pays each item under the contract and applicable rules. A single unexplained total is hard to compare with the final settlement.
Our nota simple, deposit and deed checklist explains what to check before handing over money. A reservation or arras payment is generally credited towards the price under its contract; do not count it twice as a new tax or fee.
If you need a Spanish mortgage
Keep the purchase deed separate from the mortgage deed. The Bank of Spain explains the allocation of mortgage formalisation costs under Law 5/2019: in the regime described, the borrower pays the valuation, while the lender bears the mortgage deed’s notary, registry, tax and administration costs. That does not mean the lender automatically pays for your purchase deed or purchase tax. Examine any arrangement fee, insurance and total borrowing cost in the specific offer. Our non-resident mortgage guide explains the documents, FEIN and offer comparison without assuming approval. Do not assume your deposit contract protects you if mortgage approval is still pending; have its conditions checked.
Buying from abroad may also involve transfer charges, currency conversion and bank identification checks. Ask for written tariffs and timeframes; an estimated exchange rate is not a guaranteed rate.
Costs after completion
Local property tax, community charges, insurance, utilities, repairs and tax obligations determined by residence and use are ownership costs, not acquisition taxes. Check receipts and documented extraordinary community charges before reserving. Our after-purchase checklist covers the first steps after completion. For the whole sequence, see the international buyer’s guide.
Frequently asked questions
What percentage should I add to the price?
There is no reliable universal percentage. Calculate the tax for the actual transaction and obtain quotes for the other lines. Add your own contingency without describing it as a statutory fee.
Does the bank pay every cost if I take a mortgage?
No. The allocation of certain mortgage-deed costs does not replace purchase tax and purchase-deed expenses. The borrower normally pays the valuation under the Bank of Spain guidance.
Is the deposit an extra cost?
It is usually part of the agreed price under the contract. Check its amount, timing, conditions and consequences; do not double count it in the budget.
Sources and review: Spanish Tax Agency, consolidated Valencian Law 13/1997, Notariado, Land Registrars and Bank of Spain; checked on 31 October 2026. General information, not an individual financial, legal or tax quotation. BeniHomes editorial image of Benidorm, not an advertised property.