Buying a Property in Costa Blanca South: Complete Guide for Foreign Buyers

Buying a property in Costa Blanca South can be an exciting way to own a home in Spain, whether you are looking for a permanent residence, a holiday home, a retirement property or a long-term investment.

From the beaches of Orihuela Costa and Pilar de la Horadada to the residential communities around Torrevieja, Ciudad Quesada and Guardamar del Segura, Costa Blanca South offers a wide range of apartments, townhouses, villas and new-build developments.

However, buying property in Spain as a foreigner involves more than finding the right home. Buyers need to understand the Spanish property purchase process, taxes, legal checks, financing, running costs and, particularly if rental income is part of the plan, the rules governing tourist accommodation.

This complete guide explains how to buy property in Costa Blanca South as a foreign buyer, step by step.

Important: Property, tax and tourist-rental regulations can change. This guide is intended as general information and should not replace advice from an independent Spanish lawyer, tax adviser or other qualified professional.

Why Buy Property in Costa Blanca South?

Costa Blanca South has become one of Spain’s most internationally oriented residential markets.

The area combines Mediterranean beaches, golf courses, established international communities, relatively good transport connections and a broad selection of property types.

The wider Alicante province is particularly relevant to international buyers. Official property-registration data for the second quarter of 2026 showed that foreign buyers accounted for 46.43% of registered residential purchases in Alicante province. This is a provincial figure and should not be interpreted as the percentage for every individual town in Costa Blanca South.

For buyers considering Costa Blanca South, popular locations include:

Orihuela Costa
Torrevieja
Pilar de la Horadada
Guardamar del Segura
Ciudad Quesada
Los Montesinos
Rojales
Santa Pola

Each area has a different character.

Orihuela Costa

Orihuela Costa is particularly well known for its beaches, golf resorts, established residential communities and large international population.

Popular areas include Campoamor, Villamartín, Playa Flamenca, La Zenia, Cabo Roig and Mil Palmeras.

Torrevieja

Torrevieja combines a substantial permanent population with holiday homes and international residents. It offers apartments, townhouses, villas and properties close to beaches, shops and services.

Pilar de la Horadada

Further south, Pilar de la Horadada and its coastal areas offer a mixture of traditional Spanish neighbourhoods, modern developments and properties close to the Mediterranean.

Ciudad Quesada and Rojales

These inland communities appeal to buyers looking for villas, larger plots, golf access and a residential environment while remaining within relatively easy reach of the coast.

Costa Blanca South Property Market in 2026

Anyone researching the Costa Blanca South property market should distinguish between asking prices and actual completed transaction prices.

For example, a summer 2026 market review using Idealista asking-price data reported an asking price of approximately €3,066 per square metre in Orihuela Costa in August 2026, while Torrevieja was around €2,536 per square metre in July 2026. These are advertised asking prices rather than guaranteed final sale prices.

The same review reported that Orihuela Costa’s asking prices were 7.1% higher year-on-year in August 2026, although the increase between May and August was considerably smaller. This illustrates why buyers should avoid judging the market from a single percentage or asking-price statistic.

For a serious purchase, compare:

Current asking prices.
Recent comparable properties.
Property condition.
Location and walking distance to amenities.
Community fees.
Plot and built size.
Renovation requirements.
Actual completed transaction evidence where available.

Can Foreigners Buy Property in Spain?

Yes.

Foreign nationals can generally purchase property in Spain, and buying a property does not automatically require becoming a Spanish resident.

This distinction is important:

Owning property in Spain and having Spanish residency are two different things.

A buyer can own a holiday home or other property in Costa Blanca South without automatically becoming a Spanish tax resident.

However, buying property can create Spanish tax and administrative obligations, and anyone planning to spend substantial periods in Spain should obtain immigration and tax advice based on their individual circumstances.

Do You Need an NIE to Buy Property in Spain?

One of the first practical steps for a foreign buyer is obtaining a NIE (Número de Identidad de Extranjero), the foreigner’s identification number used for many official and financial procedures in Spain.

You will typically need an NIE for property-related transactions and other activities such as dealing with Spanish tax authorities, banks and utilities.

Do not leave this until the last minute.

If you are planning to buy property in Costa Blanca South, arrange the documentation you need early so that the purchase process is not delayed.

Step 1: Decide What You Want to Buy

Before looking at individual properties, define your requirements.

Ask yourself:

Do you want a permanent home or holiday property?
Will you live there all year?
Do you need access to an international airport?
Is walking distance to the beach important?
Do you need a private swimming pool?
Is a communal pool sufficient?
Do you want a villa, townhouse or apartment?
Do you need several bedrooms?
Is golf important?
Will you need parking?
Are you planning to rent the property?
How much renovation are you prepared to undertake?
What annual running costs can you comfortably afford?

These questions can dramatically reduce the number of unsuitable properties.

Step 2: Choose the Right Location

Costa Blanca South is not one single property market.

A property in central Torrevieja is a very different proposition from a villa in Ciudad Quesada or a townhouse close to the beach in Orihuela Costa.

Consider:

Location

Check the actual journey times to:

Alicante Airport
Murcia Airport
Beaches
Supermarkets
Hospitals
Schools
Restaurants
Golf courses
Public transport
Main roads

Seasonality

Some developments are lively throughout the year, while others can be much quieter outside the summer months.

If you intend to live in the property permanently, visit the area during different seasons before buying.

Community

Some residential developments have a high proportion of international owners, while others have a stronger Spanish residential character.

There is no universally correct choice. The important point is to choose an environment that matches your intended lifestyle.

Step 3: Calculate Your Real Property Budget

One of the biggest mistakes made by first-time foreign buyers is calculating only the advertised purchase price.

Your total acquisition budget may include:

Purchase price
Transfer tax or VAT
Stamp duty where applicable
Notary costs
Land Registry fees
Lawyer’s fees
Mortgage-related costs
Valuation fees
Translation costs
Currency-exchange costs
Property inspection
Renovation
Furniture
Utility connections
Community fees

For this reason, establish your maximum all-in budget, not simply your maximum property price.

Property Taxes When Buying in Costa Blanca South

Tax treatment depends primarily on whether you are buying a new property or a resale property and on the specific circumstances of the transaction.

Buying a Resale Property

For a typical resale property, the buyer generally pays Impuesto de Transmisiones Patrimoniales (ITP), or Transfer Tax.

The Valencian Community changed its general property-transfer tax from 10% to 9% for taxable events from 1 June 2026, while properties or rights with a value above €1 million are subject to an 11% rate under the applicable legislation. Certain reduced rates can apply in qualifying circumstances.

Therefore, a buyer purchasing a €250,000 qualifying resale property at the general 9% rate would have a tax calculation of approximately:

€250,000 × 9% = €22,500

This is an illustration only. The taxable base and applicable rate must be checked for the specific transaction.

The Valencian Tax Agency provides the relevant procedure for the property transfer tax return, including the Model 600 process.

Buying a New-Build Property

When buying a qualifying new home directly from a developer, VAT (IVA) normally applies.

The Spanish government’s current guidance states that the standard VAT rate for the sale of dwellings is 10%, with specific reduced treatment for certain officially protected housing.

Depending on the transaction, AJD (Stamp Duty) may also apply.

Because new-build taxation can differ from resale taxation, buyers should have their lawyer or tax adviser calculate the exact amount before signing.

What Is the Reference Value?

Another important point for buyers in Spain is that property-transfer taxation is not necessarily determined simply by the price written in the sales contract.

Spain uses a reference value system for certain properties and taxes, and the applicable tax calculation can depend on the circumstances of the transaction.

This is one reason why buyers should ask their lawyer or tax adviser to check the property’s fiscal information before committing to the purchase.

How Much Does It Cost to Buy Property in Costa Blanca South?

There is no single percentage that applies to every purchase.

As a general planning exercise, buyers should budget for the purchase tax plus professional and transaction costs in addition to the agreed property price.

For example, consider a hypothetical €250,000 resale property:

Cost	Example
Property price	€250,000
ITP at 9%	€22,500
Legal, notary, registry and other costs	Variable
Total	More than €272,500

The final figure depends on the transaction, professional fees, financing and other circumstances.

For a new-build property, the tax structure is different because VAT applies.

Never base your budget solely on the advertised property price.

Step 4: Find an Independent Spanish Lawyer

Using an independent lawyer is one of the most important recommendations for a foreign property buyer.

Ideally, your lawyer should represent you, rather than the seller, developer or estate agent.

A Spanish property lawyer can investigate matters such as:

Ownership
Existing mortgages
Embargoes
Charges
Planning issues
Property boundaries
Community debts
IBI payments
Licences
Existing tenants
Contracts
Tax obligations
Registration details

The Spanish government specifically recommends checking the property’s legal situation before purchase.

The nota simple from the Land Registry can show ownership and registered charges, including mortgages and embargoes, as well as information concerning certain obligations associated with the property.

Step 5: Carry Out Property Due Diligence

Never assume that an attractive property advertisement tells you everything you need to know.

Your lawyer should verify the legal documentation.

Important checks include:

1. Land Registry

Request and review the property’s nota simple.

Check:

Who owns the property?
Is the seller the registered owner?
Are there mortgages?
Are there embargoes?
Are there other registered charges?

2. Catastro

Compare the cadastral information with the actual property.

Pay attention to:

Plot size
Built area
Property description
Cadastral reference

3. Planning and Building Legality

This is particularly important if the property has:

An extension
Swimming pool
Conservatory
Converted garage
Additional bedroom
Enclosed terrace
Outbuilding

An alteration that looks perfectly normal may still require appropriate planning or registration.

4. Community of Owners

If the property belongs to a community, check:

Current community fees
Outstanding debts
Planned major works
Community rules
Meeting minutes
Restrictions on certain uses

This becomes especially important if you are considering short-term tourist rental.

Step 6: Be Careful With Off-Plan Property

Costa Blanca South has a large new-build market.

Buying directly from a developer can offer advantages such as modern construction, energy efficiency and contemporary layouts, but the legal and financial checks remain important.

Before paying a substantial deposit, investigate:

Developer identity
Building licence
Planning status
Construction timetable
Payment schedule
Bank guarantees where applicable
Specifications
Completion conditions
Contract cancellation provisions
Community arrangements
Snagging procedure

Your lawyer should review the contract before you sign it or transfer a significant deposit.

Step 7: Understand the Reservation Deposit

Once you find a property you want to buy, the seller or estate agent may ask you to sign a reservation agreement and pay a deposit.

Do not assume that every deposit contract has the same legal effect.

Before paying, make sure you understand:

What happens if the seller withdraws?
What happens if your mortgage is rejected?
What happens if legal problems are discovered?
Is the deposit refundable?
What is the deadline for completing?
Are conditions attached to the reservation?

A relatively small payment can have significant contractual consequences.

Get the agreement checked before signing.

Step 8: The Private Purchase Contract

The next stage may involve a private purchase agreement, commonly known as a contrato de arras.

The contract should clearly establish matters such as:

Buyer and seller
Property identification
Purchase price
Deposit
Completion date
Payment schedule
Conditions
Liabilities
What happens if either party fails to complete

The precise legal consequences depend on the wording and type of contract.

This is another reason why a lawyer should review the agreement before you sign.

Step 9: Arrange Your Spanish Mortgage

Foreign buyers may be able to obtain a Spanish mortgage, although lending criteria vary between banks and borrowers.

The bank may consider:

Income
Employment
Existing debts
Credit profile
Nationality
Residency status
Property value
Loan-to-value ratio
Age
Currency of income

Non-resident buyers should not assume that a Spanish bank will finance the same percentage of the purchase price as it might for a resident.

Get a realistic financing assessment early.

The Banco de España recommends comparing the total cost of mortgage offers, including interest, commissions, fees, term, currency and other conditions. It also highlights documents such as the FIPRE and FEIN in the mortgage process.

How Much Deposit Do Foreign Buyers Need?

The amount of cash required depends on the property, mortgage, buyer profile and bank.

A buyer should budget not only for the deposit or down payment but also for purchase taxes and transaction costs.

This means that someone who has enough money for a percentage of the property price may still not have enough cash to complete the purchase.

Always calculate the complete cash requirement before making an offer.

Step 10: Sign Before a Spanish Notary

The final purchase is normally formalised through a public deed before a Spanish notary.

The notary plays an important role in the formalisation of the transaction, but buyers should understand that a notary is not a substitute for their own independent legal due diligence.

At completion:

The parties attend the notary.
The final documentation is reviewed.
The purchase deed is signed.
The purchase price is paid according to the agreed mechanism.
The keys are normally handed over.
The transaction proceeds to registration and tax formalities.

Step 11: Register the Property

After completion, the purchase should be registered with the appropriate Land Registry.

The Spanish government recommends registering property acquisitions and provides access to information about the relevant registries and procedures.

Registration provides an important layer of legal certainty concerning ownership and registered rights.

Buying a Property in Costa Blanca South for Holiday Rental

Many foreign buyers are interested in purchasing a property that they can use themselves while also generating rental income.

However, do not buy a property on the assumption that you can automatically operate it as a holiday rental.

The rules for tourist accommodation in the Valencian Community are important.

Under current Valencian legislation, a tourist-use dwelling is generally a complete property offered for payment for tourist purposes for 10 days or less to the same tenant, subject to the relevant urban-planning compatibility report and other requirements. Tourist accommodation cannot simply be assumed to be permitted because an owner owns the property.

Municipal authorities can also establish limitations concerning tourist-use properties in buildings, areas or zones.

There is another important consideration: the community of owners.

Recent official decisions demonstrate that an administrative tourist-use authorisation does not necessarily resolve separate civil or community-property restrictions. Community statutes can restrict tourist activity in certain circumstances.

Therefore, before purchasing an apartment or townhouse as a holiday-rental investment, investigate:

Municipal planning rules
Tourist-use compatibility
Existing tourist registration
Community statutes
Community meeting decisions
Building restrictions
Current registration requirements
Local restrictions
Tax implications

If rental income is central to your investment plan, make this investigation before signing the purchase contract.

Property Running Costs in Costa Blanca South

Buying the property is only the beginning.

Foreign owners should budget for ongoing costs such as:

IBI

Impuesto sobre Bienes Inmuebles (IBI) is the annual local property tax.

The amount depends on the property and municipality.

Community Fees

Apartments, townhouses and properties within residential communities may have monthly or annual community charges.

These can vary substantially depending on:

Swimming pools
Gardens
Security
Lifts
Communal areas
Sports facilities
Maintenance
Size of the development

Utilities

Budget for:

Electricity
Water
Internet
Waste-related charges where applicable
Gas, if relevant

Insurance

Building and contents insurance can be particularly important for properties that remain empty for periods of the year.

Maintenance

A holiday home may need:

Air-conditioning servicing
Pool maintenance
Garden maintenance
Cleaning
Repairs
Keyholding
Security checks

These costs should be included in your long-term property budget.

Tax Considerations for Non-Resident Property Owners

Owning a property in Spain can create tax obligations even if you do not live there permanently.

Depending on your circumstances, these can include taxation connected with:

Rental income
Imputed income from a property not rented out
Property ownership
Sale of the property
Capital gains
Local taxes
Wealth-related taxation where applicable
Inheritance and succession

Tax rules can also depend on your country of tax residence and any applicable double-taxation agreement.

For this reason, foreign buyers should speak to a tax adviser who understands both Spanish taxation and the buyer’s country of residence.

What Happens When You Sell the Property?

Selling a Spanish property can create additional tax and administrative obligations.

Potential considerations include:

Spanish capital gains taxation
Local taxes
Non-resident tax rules
Tax withholding mechanisms
Estate-agent fees
Legal fees
Mortgage cancellation costs
Currency exchange

Non-resident sellers should obtain tax advice before agreeing the final sale price because the amount received after taxes and selling costs can differ significantly from the headline sale price.

Currency Exchange for Foreign Buyers

Currency exchange is often overlooked.

If your income and savings are in pounds, kroner, francs, dollars or another currency while the property is priced in euros, exchange-rate movements can affect your actual purchasing power.

For a €300,000 property, even a relatively small currency movement can represent several thousand units of your home currency.

Foreign buyers should therefore consider:

When to convert funds
Bank transfer fees
Exchange rates
Currency risk
Mortgage currency
Transfer timing

Never choose a property budget without considering the currency in which your wealth and income are held.

Common Mistakes Foreign Buyers Make

1. Choosing a property before choosing a budget

A buyer falls in love with a €300,000 villa and only later discovers that taxes, legal costs and renovation push the required budget substantially higher.

Solution: calculate the all-in cost first.

2. Using the seller’s lawyer

Your interests may not be identical to those of the seller.

Solution: use an independent lawyer who represents you.

3. Assuming the property is legally perfect

An attractive house can still have planning, registration or community issues.

Solution: carry out full due diligence.

4. Assuming a tourist rental licence is automatic

Tourist accommodation is regulated and can involve municipal, regional and community-property requirements.

Solution: verify the property’s eligibility before purchase.

5. Ignoring community fees

A low purchase price can become less attractive if the development has significant annual charges or upcoming special assessments.

Solution: request community accounts, budgets and meeting minutes.

6. Forgetting future selling costs

Your investment calculation should include both acquisition and disposal costs.

Solution: consider the complete ownership cycle.

7. Relying only on property portals

Online listings are useful for researching the market but do not replace legal or technical due diligence.

Solution: compare multiple properties and verify important claims independently.

A Practical Checklist for Foreign Buyers

Before buying property in Costa Blanca South, make sure you have considered the following:

Before viewing properties

Establish your total budget
Decide whether you need financing
Obtain or begin arranging your NIE
Research different Costa Blanca South locations
Decide whether you want new-build or resale
Decide whether rental use is important

Before making an offer

Compare similar properties
Check community fees
Consider renovation costs
Research the location at different times of year
Understand your financing position
Identify an independent lawyer

Before paying a deposit

Check the Land Registry
Review the nota simple
Check ownership
Check mortgages and charges
Check cadastral information
Investigate planning legality
Check community debts
Review the reservation agreement

Before completion

Finalise mortgage
Complete legal due diligence
Arrange property insurance
Confirm payment arrangements
Prepare funds for taxes and costs
Sign before the notary
Register the property
Complete the relevant tax filings

After completion

Change utilities
Arrange community payments
Set up IBI payments
Keep all purchase documentation
Review non-resident tax obligations
Obtain appropriate insurance
If renting, verify all applicable tourist-rental requirements

New Build vs Resale Property in Costa Blanca South

There is no universal answer as to which type of property is right for a buyer.

New Build

Potential advantages include:

Modern design
New appliances
Energy-efficient construction
Modern communal facilities
Lower immediate maintenance requirements

Potential considerations include:

Construction timetable
Developer reputation
Off-plan risk
VAT and purchase taxes
Snagging
Community fees
Distance from established services

Resale

Potential advantages include:

Established neighbourhood
Immediate availability
Existing landscaping
Ability to inspect the finished property
Potential renovation opportunities
More information about the surrounding community

Potential considerations include:

Renovation costs
Older installations
Planning irregularities
Community works
Energy efficiency
Maintenance

The key is to compare the total cost and long-term suitability, rather than simply the advertised purchase price.

How Long Does It Take to Buy Property in Spain?

There is no fixed timetable.

A straightforward cash purchase can move relatively quickly, while a transaction involving:

Mortgage financing
Planning questions
Incomplete documentation
International transfers
New-build construction
Complex ownership
Probate
Existing tenants

may take substantially longer.

Do not book flights, removals or major commitments around an assumed completion date until your lawyer and other professionals confirm the timetable.

Is Costa Blanca South a Good Place for a Foreign Buyer?

The answer depends on the buyer’s objectives.

Costa Blanca South offers a large international residential market, diverse property stock and strong foreign demand.

Current 2026 data illustrates the importance of international buyers in the wider Alicante market: foreign purchasers represented 46.43% of registered residential transactions in Alicante province during Q2 2026.

But market-wide statistics should never replace property-level research.

A good purchase decision depends on factors such as:

The exact location
Property condition
Purchase price
Legal status
Running costs
Financing
Intended use
Rental restrictions
Future resale requirements

The most attractive property on paper may not necessarily be the most appropriate one for a particular buyer.

Final Advice for Buying Property in Costa Blanca South

Buying a property in Costa Blanca South can be a straightforward process when you understand the system and prepare properly.

The most important principle is simple:

Do your due diligence before you commit your money.

Research the location. Compare properties. Calculate the complete acquisition cost. Obtain your NIE. Use an independent Spanish lawyer. Check the Land Registry and planning documentation. Understand the taxes. Investigate community rules. And if rental income is part of your plan, verify the property’s ability to operate legally as intended before you buy it.

The Costa Blanca South property market offers everything from affordable apartments to luxury villas and modern new-build developments. The challenge is not simply finding a beautiful property — it is finding one that is legally sound, financially sustainable and suitable for your personal objectives.

For foreign buyers, careful preparation can make the difference between simply purchasing a property in Spain and making a well-informed long-term property decision.

Frequently Asked Questions

Can foreigners buy property in Costa Blanca South?

Yes. Foreign nationals can generally purchase property in Spain. Property ownership and Spanish residency are separate matters, although ownership can create tax and administrative obligations.

Do I need an NIE to buy a property in Spain?

Foreign buyers normally need an NIE for property-related and other official procedures. It is advisable to arrange the necessary documentation early.

How much tax do I pay when buying a resale property in Costa Blanca South?

For qualifying resale property in the Valencian Community, the general ITP rate is 9% for taxable events from 1 June 2026, with an 11% rate applying where the relevant property value exceeds €1 million, subject to applicable rules and exceptions.

What tax do I pay when buying a new-build property?

A qualifying new dwelling purchased from a developer is generally subject to 10% VAT, with applicable stamp-duty considerations depending on the transaction.

Can I get a Spanish mortgage as a non-resident?

Potentially, yes. Spanish banks can offer mortgages to foreign and non-resident buyers, subject to their lending criteria and the buyer’s financial circumstances.

Should I use a Spanish lawyer when buying property?

Using an independent Spanish property lawyer is strongly advisable, particularly for foreign buyers who may be unfamiliar with Spanish property law and procedures.

Can I rent my Costa Blanca South property to tourists?

Potentially, but tourist rentals are regulated. In the Valencian Community, tourist-use properties are subject to specific requirements, including planning compatibility and applicable administrative requirements. Community-property rules can also be relevant.

Which are the most popular areas of Costa Blanca South?

Popular areas include Orihuela Costa, Torrevieja, Pilar de la Horadada, Guardamar del Segura, Ciudad Quesada, Rojales and surrounding communities. The best location depends on lifestyle, budget, property type and intended use.

Is Costa Blanca South suitable for a holiday home?

The area is popular with international homeowners looking for Mediterranean lifestyle properties, holiday homes and second residences. However, buyers should assess year-round accessibility, community costs, maintenance and any intended rental strategy before purchasing.