Complete Guide to Buying Property on Costa Blanca in 2026

Author: Hansson & Hertzell | Category: Buyer Guide | Updated: February 2026

Quick Answer

Buying property on Costa Blanca involves obtaining a Spanish NIE number, navigating 10-12% in acquisition costs (6-8% transfer tax, notary/legal fees, registry costs), finding a suitable property, making an offer, securing a lawyer, and closing through a Spanish notary over 8-12 weeks. International buyers can access mortgages covering 60-80% of property value at competitive rates, making strategic financing a key component of successful acquisitions.

Introduction

Purchasing property on Costa Blanca represents one of the most significant financial and lifestyle decisions an international buyer can make. For Swedish, Norwegian, British, German, and Dutch investors, the Spanish property market offers compelling opportunities—but the process differs substantially from home country procedures. Understanding each step, from initial planning through final keys receipt, transforms what appears intimidating into a straightforward, manageable process.

This comprehensive guide walks you through every phase of Costa Blanca property acquisition, explaining legal requirements, clarifying costs, detailing timelines, and highlighting where professional guidance proves invaluable. Whether purchasing your first Mediterranean home or expanding an investment portfolio, this roadmap ensures you navigate the process confidently.

1. Step-by-Step Buying Process

The Costa Blanca property purchase follows a logical sequence with distinct phases and decision points.

Phase One: Planning and Preparation (Weeks 1-4) - Define property requirements: Location, size, features, budget, investment vs. lifestyle goals - Secure financing pre-approval (if mortgage needed) - Gather documentation for Spanish procedures - Research neighborhoods and market conditions - Connect with local property agents and professionals

Phase Two: Property Search and Evaluation (Weeks 5-16) - Browse online property databases and agent listings - Schedule site visits during planning trips - Inspect properties thoroughly (structure, condition, rental potential) - Review documentation: deed abstracts, floor plans, certification documents - Evaluate neighborhood amenities and rental market dynamics

Phase Three: Negotiation and Offer (Weeks 17-20) - Submit written offer through real estate agent - Negotiate price and terms with seller - Finalize agreed price and conditions - Place deposit (typically 5-10% of purchase price) - Execute preliminary purchase agreement

Phase Four: Legal Due Diligence (Weeks 21-28) - Engage Spanish lawyer for legal review - Verify property ownership and rights - Check for liens, mortgages, or legal encumbrances - Confirm tax and utility status - Arrange property survey and professional inspection

Phase Five: Financing and Closing (Weeks 29-36) - Arrange mortgage pre-approval (if needed) - Schedule notary appointment - Review final settlement statement - Wire funds to escrow - Sign notary documents - Register property at Land Registry

Total timeline: 8-12 weeks for resale properties; 12-24 months for new-build projects

2. Understanding Your NIE Number: Essential First Step

Every property buyer in Spain requires a Spanish Tax Identification Number (Número de Identificación de Extranjero, or NIE). This simple document proves essential for property registration, tax compliance, and financial transactions.

What is a NIE? A NIE is a nine-character code (similar to X1234567B) assigned by Spanish tax authorities to non-residents for tax purposes. It functions as your Spanish tax identification number and is required for virtually every property transaction.

How to obtain your NIE: - Option 1: Spanish Consulate (easiest for non-residents): Visit your country's Spanish consulate with completed form EX-15, passport, and proof of property purchase. Processing time: 1-3 weeks - Option 2: Spanish National Police (requires Spain visit): Complete form EX-15 at local police station, submit with documentation. Processing time: Same-day to 1 week - Option 3: Your Spanish lawyer: Most lawyers can arrange NIE acquisition as part of purchase services (recommended approach for international buyers)

NIE advantages beyond property purchase: - Required for Spanish bank account opening - Necessary for mortgage applications - Compulsory for rental income reporting - Critical for any Spanish financial transactions

Hansson & Hertzell recommends engaging your lawyer to handle NIE acquisition—it's typically completed within weeks and removes administrative burden from the buyer.

3. Finding the Right Property: Strategies and Resources

Effective property search combines multiple channels and clear evaluation criteria.

Property search channels: - Online portals: Idealista, Fotocasa, Inmobiliario (largest Spanish sites; similar to Zillow/Rightmove) - Real estate agents: Local brokers specializing in your target area - Developer websites: New-build projects with direct builder listings - Word-of-mouth: Existing expat networks often know properties before formal listing - Auction sites: Bank-repossessed or foreclosed properties (requires caution and expertise)

Property evaluation criteria: - Location: Proximity to amenities, beach access, community infrastructure - Condition: Structural soundness, renovation requirements, energy efficiency ratings - Rental potential: Holiday season demand, long-term tenant availability, comparable rates - Neighbors: Community composition, language capabilities, social integration opportunities - Future development: Regional infrastructure projects affecting long-term appreciation

Red flags requiring caution: - Properties with unclear ownership history - Sellers with incomplete documentation - Properties subject to legal disputes or community issues - Recently reduced prices without clear explanation - Communities with excessive outstanding fees or conflicts - Properties requiring extensive renovations (budget realistic costs)

4. Making an Offer and Negotiating Terms

Written offers through qualified agents establish legal framework and protect both parties.

Offer process mechanics: - Submit written offer (typically 5-10% below asking price for realistic negotiations) - Offer typically includes: Purchase price, closing date, conditions precedent, earnest money deposit amount - Agent presents offer to seller's representatives - Seller responds: Acceptance, counteroffer, or rejection - Negotiation continues until agreement or withdrawal

Negotiation strategy recommendations: - Research comparable sales: Establish realistic pricing anchoring negotiations - Identify seller motivation: Urgent sales enable stronger negotiation positions - Lead with reasonable offer: 5-10% below asking opens negotiation space without insulting - Propose flexible terms: Sometimes sellers value certainty over price—offer quick closing or larger deposit - Know your walk-away price: Avoid emotional escalation beyond financial sense

Earnest money considerations: - Typical deposit: 5-10% of agreed purchase price - Deposits held by notary or property agent pending closing - Non-refundable only if buyer withdraws without legitimate cause - Applies toward purchase price at closing

Timeline negotiation elements: - Closing date: Typically 4-8 weeks post-agreement (allows legal review and financing) - Inspection periods: Professional survey and evaluation timeframes - Financing contingencies: Mortgage approval prerequisites (critical for financed purchases) - Repairs or conditions: Any required pre-closing remediation by seller

5. The Lawyer's Critical Role in Property Purchase

Spanish real estate transactions are considerably more complex than simple purchase-sale agreements. Your lawyer protects your interests throughout.

Why Spanish lawyers are essential: - Spanish property law differs substantially from Northern European frameworks - Legal documentation requires expert review (mortgages, easements, community restrictions) - Verification of ownership chain and legal rights takes professional expertise - Tax implications and strategies require specialized knowledge - Community property regulations require legal interpretation

Lawyer responsibilities during acquisition: - Verify property ownership through Land Registry searches (Registro de la Propiedad) - Check for liens, mortgages, or encumbrances affecting property - Review property condition reports and certifications - Examine community documentation and regulations - Confirm tax status and utility accounts - Prepare preliminary purchase contracts - Handle NIE acquisition and documentation - Coordinate with notary and closing procedures

Lawyer selection tips: - Choose lawyers specializing in international real estate transactions - Seek referrals from other international property owners - Confirm experience with your nationality group (some specialize in Swedish, German, etc.) - Establish clear fee structures (typically €1,500-€3,000 for property purchases) - Communicate expectations clearly: timeline, update frequency, available support languages

Questions to ask potential lawyers: - How many international property transactions have you completed? - Can you provide references from clients similar to my situation? - What is your timeline expectation and communication frequency? - What languages do you speak? - Will you personally handle my transaction or delegate to associates?

6. Understanding Notary Procedures and Closing

Spanish closing procedures differ substantially from Northern European models, centering on the official notary (Notario Público).

The notary's role: In Spain, notaries (distinct from lawyers) are official government representatives responsible for verifying transaction legality, signing official documents, and registering transfers. The notary protects all parties through official authority and documentation.

Closing appointment procedures: - Both buyer and seller meet at notary office - Notary verifies identity and authority of all parties - Purchase-sale deed (Escritura de Compraventa) is read aloud and explained - All parties review and sign the official deed - Notary witnesses signatures and affixes official seal - Deed becomes legally binding upon signature - Notary submits registration documents to Land Registry

Documentation required at closing: - Original passport or ID - Property documentation and deeds - NIE verification - Mortgage documentation (if financed) - Evidence of utility account transfers - Bank details for fund transfers

Post-closing registration: - Notary submits deed to Land Registry for registration - Registration typically completes within 2-4 weeks - Registered property reflects new ownership - Official title documents issued by registry

Timeline considerations: - Closing appointments scheduled 2-4 weeks post-agreement - Notary services complete in 1-2 hours - Funds transfer via bank wire (typically next business day) - Full registration can take 3-4 weeks post-closing

7. Acquisition Costs: Comprehensive Breakdown

International buyers often underestimate property acquisition costs. These transaction expenses are significant and mandatory.

Cost breakdown for €300,000 property purchase:

Transfer Tax (Impuesto de Transmisiones Patrimoniales - ITP): - Applies to resale properties: 6-8% depending on region (varies slightly by autonomous community) - €300,000 property: €18,000-€24,000 - Applies to building value (not land separately)

New-build VAT Alternative (Impuesto sobre el Valor Añadido - IVA): - Applies to new-build properties: 10% of purchase price - €300,000 property: €30,000 - Developer passes cost to buyer; less favorable than resale transfers in most circumstances

Notary Fees: - Official government fees: 0.5-1.5% of property value - €300,000 property: €1,500-€4,500 - Includes deed preparation, registration, and filing

Land Registry Fees (Registro de la Propiedad): - Registration of property title: 0.5-1% of property value - €300,000 property: €1,500-€3,000 - One-time registration fee

Lawyer Fees: - For legal review and documentation: €1,500-€3,500 - Varies based on complexity and scope - Often negotiable or packaged with other services

Property Survey and Inspection: - Optional but recommended professional inspection: €300-€800 - Identifies structural issues, renovation requirements, safety concerns

Bank Services and Appraisal (if mortgaging): - Property appraisal required by lender: €400-€800 - Bank fees for document processing: €300-€500

Insurance: - Homeowners insurance (annual): €150-€300 - Title insurance: €500-€1,000 (optional but recommended)

Total transaction costs: €30,000-€39,000 (10-13% of €300,000 purchase price)

These costs are mandatory and non-negotiable, though occasional negotiations shift portions between buyer and seller. Budget 10-12% of purchase price for acquisition expenses.

8. Mortgage Financing for Non-Residents

International buyers can access Spanish mortgages on competitive terms, though processes differ from home country financing.

Mortgage availability for non-residents: - Spanish banks provide mortgages to non-residents with EU passports or appropriate visas - LTV (loan-to-value): 60-80% of property value typical for non-residents - 70-80% available for strong financial profiles or additional collateral - Interest rates: 2.5-4.5% (variable or fixed-rate options) - Terms: 20-40 years standard

Mortgage requirements for international buyers: - Valid passport or EU residence card - NIE number (Spanish tax identification) - Personal income documentation (3-6 months' recent statements) - Employment verification or pension documentation - Credit assessment (some lenders accept non-Spanish credit reports) - Property appraisal commissioned by lender - Down payment: 20-40% of purchase price

Mortgage advantages: - Leverage: €100,000 down payment controls €300,000 property acquisition - Rental income coverage: 5-7% property yields exceed 3-4% mortgage interest costs - Tax deductions: Mortgage interest reduces taxable income in some circumstances - Currency diversification: EUR-denominated mortgages hedge home currency exposure - Preserve capital: Maintain investment flexibility while building property equity

Mortgage disadvantages: - Additional processing complexity and timeline extension - Interest costs over loan term (€100,000 mortgage @ 3.5% = €65,000+ interest over 20 years) - Property remains collateral to lender until final payment - Regular payments required regardless of market conditions or rental income - Refinancing opportunities limited compared to home country markets

Mortgage application timeline: - Pre-approval: 1-2 weeks (subject to documentation review) - Final approval: 3-4 weeks post-agreement (after property appraisal and additional review) - Mortgage closing: Coordinated with property closing procedures

Key lenders for international buyers: - BBVA (Banco Bilbao Vizcaya Argentaria) - Bankinter - CaixaBank - Banco Sabadell - Banco Santander

Most Spanish banks have English-speaking loan officers experienced with international applicants.

9. Common Pitfalls and How to Avoid Them

Experienced international buyers recognize mistakes undermining transaction success.

Pitfall 1: Inadequate Legal Review - Risk: Undiscovered liens, ownership disputes, or encumbrances - Solution: Always engage qualified lawyer before committing funds - Prevention: Allow 2-3 weeks for thorough legal review; never skip this phase

Pitfall 2: Underestimating Acquisition Costs - Risk: Insufficient funds for closing; delayed transactions or withdrawal - Solution: Budget minimum 12% of purchase price for transaction costs - Prevention: Request detailed cost estimate from lawyer and notary before committing

Pitfall 3: Inadequate Property Inspection - Risk: Hidden structural problems, renovation requirements, safety issues - Solution: Commission professional inspection and survey - Prevention: Have qualified engineer inspect property; ask questions and address concerns

Pitfall 4: Unclear Community Status - Risk: Unexpected community fees, pending assessments, or community disputes - Solution: Request complete community documentation from seller - Prevention: Review community minutes, budget, and fee history; interview neighbors

Pitfall 5: Poor Financing Decisions - Risk: Excessive leverage, impossible payment obligations, refinancing complications - Solution: Only borrow amounts comfortably covered by rental income or existing wealth - Prevention: Conservative debt service ratios; stress-test mortgage payments against 5% rental yields

Pitfall 6: Property Location Misalignment - Risk: Property location doesn't match actual usage or investment needs - Solution: Spend time in neighborhood before committing purchase - Prevention: Visit during different seasons and times; meet neighbors; experience reality

Pitfall 7: Seller-Suggested Services - Risk: Using seller-recommended services without independent verification - Solution: Select own professionals independently - Prevention: Choose lawyer, inspector, and surveyor through independent research and referrals

Pitfall 8: Rush-Based Decisions - Risk: Pressure sales, inadequate review, emotional decisions over financial logic - Solution: Allow adequate timeline for thorough evaluation - Prevention: Set realistic purchase timeline; resist artificial urgency or deadline pressure

10. Timeline Expectations and Realistic Scheduling

Understanding purchase timelines prevents frustration and enables better planning.

Typical resale property timeline: - Week 1-2: Property search and negotiations - Week 3: Agreement and deposit placement - Week 4-6: Legal review and due diligence - Week 7-8: Mortgage approval (if financing) - Week 9: Notary appointment scheduling - Week 10: Final closing and registration initiation - Week 11-12: Land Registry registration completion

Typical new-build timeline: - Month 1-6: Developer sales and negotiation - Month 6-12: Construction phase (developer-dependent) - Month 12-18: Near-completion inspections and documentation gathering - Month 18-20: Purchase documentation and financing - Month 20-24: Closing and registration

Timeline acceleration factors: - Documented financial pre-approval (reduces mortgage timing) - Early lawyer engagement (parallelizes legal review with property evaluation) - Cash purchase (eliminates mortgage approval delays) - Motivated sellers (increases closing date flexibility)

Timeline extension factors: - Complex legal situations or ownership issues - Financing complications or credit review - Mortgage lender delays or documentation requests - Notary scheduling constraints (high season wait times) - Unexpected property inspection findings requiring renegotiation

11. Essential Documents and Information Gathering

Prepare comprehensive documentation streamlines purchase process considerably.

Personal documentation to assemble: - Valid passport or EU residence card (multiple certified copies) - Recent bank statements (3-6 months) showing down payment funds - Employment verification letter or pension income documentation - Tax returns (last 1-2 years) if mortgage financing - Proof of residence in home country (utility bills, lease agreement) - Complete list of all financial accounts and liabilities

Financial documentation: - Bank account statements (down payment source verification) - Mortgage pre-approval letter (if financing) - Investment account statements (demonstrating available capital) - Insurance documentation (if applicable)

Property-related documentation: - Property deeds and ownership history - Recent property tax statements (IBI) - Utility account information (electricity, water, gas account numbers) - Community regulations and documentation - Homeowners association meeting minutes and budgets - Property inspection reports and certifications - Rental history and agreements (if existing rental property)

Professional contact information: - Spanish lawyer (name, phone, email, office address) - Property real estate agent details - Bank or mortgage lender contact information - Notary information (once selected) - Property management company (if outsourcing)

12. Post-Purchase: Registration and Settlement

After closing, important administrative steps finalize your ownership.

Immediate post-closing actions: - Verify property deed receipt from notary (within 1-2 weeks) - Confirm Land Registry submission - Update property insurance documentation - Arrange utility account transfers to your name - Notify community administration of ownership change - Arrange property management (if not self-managing)

Land Registry verification: - Registration typically completes 3-4 weeks post-closing - Registry issues official title documents - Confirm registration through lawyer or online registry verification - Request certified title copy for your records

Utility account transfers: - Electricity (Endesa, Iberdrola, EDP, etc.): Contact provider with new ownership documentation - Water and waste: Local municipal management (varies by location) - Gas (if applicable): Contact gas company and arrange transfer - Internet/television: Contact service provider for account transfer

Community notifications: - Notify community administration (Administrador de Fincas) of ownership - Request current community fee status and payment method - Provide forwarding address for community communications - Confirm any special assessments or pending projects

Frequently Asked Questions

Q: Do I need a lawyer to buy property in Spain?

Yes, professional legal representation is essential. Spanish property law is complex, property searches require expert interpretation, and ownership verification needs specialized knowledge. Your lawyer protects against liens, disputed ownership, and legal complications that could undermine property rights. Budget €1,500-€3,500 for qualified legal representation—among the most important purchase expenses.

Q: What is a Spanish NIE number and why do I need one?

A NIE (Número de Identificación de Extranjero) is your Spanish Tax Identification Number. It's required for property registration, mortgage applications, bank account opening, and rental income reporting. Obtaining a NIE takes 1-3 weeks and can be handled by your lawyer as part of the purchase process. You'll need this number for life when owning Spanish property.

Q: How much are closing costs when buying property in Spain?

Expect 10-12% of the purchase price in acquisition costs: 6-8% transfer tax (ITP) on resale properties, 1-2% notary fees, 0.5-1% registry fees, and 1-2% legal fees. A €300,000 property involves approximately €30,000-€36,000 in transaction costs. These are mandatory, non-negotiable expenses essential for property transfer.

Q: Can I get a Spanish mortgage as a non-resident international buyer?

Yes, Spanish banks offer mortgages to non-residents with EU passports covering 60-80% of property value. Interest rates are competitive (2.5-4.5%), and mortgage terms run 20-40 years. You'll need passport documentation, income verification, and property appraisal. Many international buyers successfully finance Spanish purchases through Spanish banks.

Q: What does the notary do in Spanish property transactions?

The notary is an official government representative verifying transaction legality, confirming party identity and authority, and executing the official deed. During closing, the notary reads the purchase-sale deed aloud, confirms all parties understand terms, witnesses signatures, and officially registers the transfer. The notary's involvement ensures transaction legitimacy and protects all parties through official authorization.

Q: How long does the property purchase process take?

Resale properties typically require 8-12 weeks from offer to registration: 2 weeks negotiation, 2-3 weeks legal review, 2 weeks mortgage approval (if financing), 1 week closing, and 3-4 weeks Land Registry registration. New-build properties take 12-24 months depending on construction phase. Allow adequate time for thorough evaluation rather than rushing decisions.

Q: What happens at the notary closing appointment?

Both buyer and seller meet at the notary office. The notary verifies identity and authority, reads the purchase-sale deed aloud, and explains all terms. All parties review and sign the official deed. The notary witnesses signatures, applies official seal, and submits registration documents. The deed becomes legally binding upon signature. Closing appointments typically last 1-2 hours.

Q: Are there different taxes for new-build vs. resale properties?

Yes—resale properties pay 6-8% transfer tax (ITP), while new-build properties pay 10% VAT (IVA). VAT is typically less favorable, making new-build properties more expensive overall. However, new-builds offer energy efficiency, warranties, and quality advantages sometimes justifying premium pricing depending on your priorities.

Q: What is a community fee (cuota de comunidad) and how much should I expect?

Community fees (HOA-equivalent) cover common area maintenance, administration, insurance, and repairs. Apartment fees typically range €60-€150 monthly; villa fees vary €50-€200 depending on community amenities. Some communities charge additional assessments for major repairs. Review community documentation and budget before purchasing.

Q: What happens after closing—how long until I receive official ownership documents?

After closing, the notary submits documentation to the Land Registry, which typically completes registration within 3-4 weeks. Once registered, you receive official title documents from the registry. Your lawyer will confirm registration and provide certified copies. This registration period is normal and doesn't affect your ownership rights.

Q: Should I buy property with cash or get a mortgage?

Your choice depends on available capital, investment objectives, and long-term plans. Cash purchases offer simplicity and negotiation advantages but deplete capital. Mortgages provide leverage and maintain investment flexibility, though they involve interest costs and qualification complexity. Properties with strong rental yields often justify mortgaging despite interest costs.

Q: How do I avoid fraud or scams in Spanish property transactions?

Never engage with unqualified professionals or skip legal reviews. Always use a qualified lawyer to verify ownership and conduct thorough due diligence. Use only official channels for fund transfers (never informal bank transfers). Verify seller legitimacy and property documentation independently. Professional oversight prevents fraud exposure.

Share