In addition to the purchase price, you should budget for 10% to 15% of the property's value to cover various taxes and fees.

The main taxes depend on whether the property is a new build or a resale. For a new build, you pay VAT (IVA) at 10% plus Stamp Duty (AJD).

For a resale property, you pay the Property Transfer Tax (Impuesto de Transmisiones Patrimoniales - ITP), which varies by region but is typically between 7% and 10%. On top of these taxes, you'll have professional fees for the notario (notary), the Registro de la Propiedad (Land Registry), and your independent abogado (lawyer).

For a more detailed breakdown of purchase costs in the Costa Blanca South, Call +34 966 718 392 or email Sales@Homes4u.es

Buying in Orihuela Costa? Call +34 655 30 17 30 or email Sales@SellingOrihuelaCosta.com

Yes, absolutely. Spanish banks actively offer mortgages to foreigners, whether you are a resident or a non-resident.

However, the terms are different from those for residents. Non-residents can typically borrow 60% to 70% of the property's appraised value, meaning you will need a higher deposit of at least 30%.

Banks will also require extensive documentation to prove your income and financial stability from your home country. It is highly recommended to work with a gestor (a financial manager) or a mortgage broker who specialises in assisting foreign buyers.

It's important to budget for regular expenses beyond the purchase price. These costs typically add up to between 0.5% and 1% of your property's value annually.

The primary ongoing cost is the annual local property tax, called Impuesto sobre Bienes Inmuebles (IBI), which is based on the official cadastral value of the property. In the Alicante province where our properties are located, this is commonly referred to as the SUMA tax, named after the local tax collection agency.

Other recurring costs include:

• Comunidad de Propietarios (community fees) if your property is part of a complex.

• IRNR (Impuesto sobre la Renta de No Residentes), a non-resident income tax.

• Utility bills (agua and luz), home insurance, and waste collection fees (basura).

No, property ownership no longer automatically grants residency in Spain. The Golden Visa programme, which previously allowed non-EU investors to obtain residency through a real estate purchase of €500,000 or more, officially ended on 3rd April 2025.

This change was implemented by the Spanish government to address housing shortages in popular areas. While the Golden Visa programme is no longer a pathway to residency, there are still other options available, such as the non-lucrative visa or the Digital Nomad visa, which may be suitable for those who can prove they have sufficient financial means or work remotely.