Buy a property in Costa Blanca is an excellent investment, whether to enjoy your holidays, live all year round or to rent to third parties. However, it is important to know the associated taxes and expenses so that you can plan your budget properly. In this article, we provide you with all the information you need to know about taxes and fees when buying a new-build, resale property, or a plot of land on the Costa Blanca.

1. Taxes when buy a new-build home

When you buy a new build property in Costa Blanca, you should take into account two main taxes: Value Added Tax (VAT) and Stamp Duty (IAJD). These taxes must be paid within 30 business days of purchase.

• VAT: The general rate is 10% of the value of the property. For example, if you buy a new home valued at €300,000, the VAT would be €30,000. However, for social housing, this rate is reduced to 4%.
• IAJD: This tax is calculated on the deeded value of the property and is 1.5% in Costa Blanca, however, if the property is used as a first home, the rate is reduced to 0.1%.

2. Taxes when buy a second-hand home

If you want to buy a second-hand house in Costa Blanca, the Property Transfer Tax (ITP) replaces VAT. In Costa Blanca, the general ITP rate is 10%, although there are some reductions:

• 8%: if you buy a social housing or if you are under 35 years of age and the property will be your main residence.
• 4%: if you have a physical disability equal to or greater than 65% or a mental disability equal to or greater than 33%, provided that the property is your main residence.

3. Taxes when buy a plot

Buy a plot for sale in Costa Blanca also involves specific taxes.

• If you buy from a real company: You must pay 21% VAT and 15% IAJD.
• If you buy from a private individual: Instead of VAT and IAJD, you pay the ITP of 10%.

In addition to these taxes to buy a property in Costa Blanca, you should also consider other expenses such as notary fees, mortgage, and property registry costs.

Receive personalized, no-obligation advice on buy a property in Costa Blanca

At Petra Hönig, we know that tax and administrative details can be complicated when buy a property in Costa Blanca. If you have questions or need additional guidance on the taxes to be paid, do not hesitate to contact us. Our team of experts is here to offer you no-obligation advice and ensure that your purchase is as simple and transparent as possible. Contact us today and let us help you make your dream of buying a property in Costa Blanca come true!

info@petrahonig.com

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