Home
•
Blogs
•
Investing in Real Estate in Spain: A Complete Guide

Investing in Real Estate in Spain: A Complete Guide

Tijn Strikker
Tijn Strikker
·
Founder
For Buyers
10
min read
November 17, 2025
Modern apartment interior in a Costa Blanca investment property
Key takeaways

Budget roughly 10 to 12 percent on top of the purchase price for taxes and fees. Resale property carries transfer tax, new build carries VAT plus stamp duty. The golden visa route closed in April 2025 and is no longer available. The Costa Blanca's long shoulder season is what makes the rental maths work.

Spain is still one of the easier places in Europe for a foreign buyer to own property, and the Costa Blanca is still where a lot of that money lands. What follows is how the process actually runs and what it costs, written by people who manage the properties afterwards rather than people who sell them.

The legal process in order

It is more predictable than people fear, as long as you take the steps in sequence.

  1. Get your NIE. The foreigner identification number. Nothing happens without it.
  2. Instruct a lawyer who acts for you. Not the agent's lawyer, not the developer's. Your own.
  3. Due diligence. Your lawyer checks ownership, the land registry entry, outstanding debts and whether the property is legally what it claims to be.
  4. Reservation and private contract. A deposit takes it off the market and sets the terms.
  5. Notary. The public deed is signed and the balance paid.
  6. Land Registry. The purchase is registered in your name. Until this is done, you are not fully protected.

What it costs on top of the price

This is where budgets go wrong. Expect roughly 10 to 12 percent above the purchase price in total.

  • Resale property: transfer tax (ITP), generally in the region of 6 to 10 percent depending on the autonomous community.
  • New build: VAT (IVA) at 10 percent, plus stamp duty (AJD) of roughly 1 to 1.5 percent.
  • Notary and land registry fees: around 1 to 2 percent combined.
  • Legal fees: typically about 1 percent.

These are indicative. Rates are set regionally and they change, so have your lawyer confirm the current figures for the exact property before you commit.

One thing that has changed

You will still find agencies advertising the Spanish golden visa, the residency route that used to come with a 500,000 euro property purchase. That programme closed in April 2025 and is no longer available. If buying property is part of a residency plan, talk to an immigration lawyer about the routes that do still exist rather than relying on anything written before then.

We would rather tell you that than let you find out later.

Where people buy

The Costa Blanca, the Costa del Sol and the Balearics take most of the foreign money. Within the Costa Blanca, the northern towns of Altea, Calpe, Moraira and Javea are the prettier and pricier end. Torrevieja, Orihuela Costa and Guardamar del Segura sit further south at lower entry prices with stronger rental yields.

Why the Costa Blanca works for rental

It is not the weather by itself, because plenty of places have weather. It is the length of the season.

Most Mediterranean rental markets live or die on July and August. Here the golf, the mild winters and the long stay market push demand into months that are dead elsewhere. Across the homes we manage we run at around 80 percent average yearly occupancy, and that number is only possible because the shoulder months carry real weight.

If you are modelling returns, model twelve months rather than three. A property that looks average on peak season rates can look very different once the shoulder is included, and the reverse is also true.

What to actually check before you buy

  • Tourist rental licence. If you intend to let short term, confirm the property can be licensed. Not every property can.
  • Community fees. Ask what they are and what they cover. Unpaid fees can follow the property.
  • Orientation and outdoor space. It affects the shoulder season directly.
  • Distance to a good beach or a golf course. The two most reliable demand drivers here.

A caveat worth reading

This is general information, not financial or legal advice, and we are not licensed advisers. Taxes, rates and rules change, and your own position depends on your residency and circumstances. Use a Spanish lawyer and a tax adviser before committing money.

If you want the unglamorous version

We manage property here for a living, which means we see what rents and what sits empty. If you are weighing up somewhere specific, send us the details and we will tell you honestly what we think it does across a year. +34 658 235 481 or info@casacapitals.com.

Homes behind this article

A couple of the properties we actually manage on the Costa Blanca.

No items found.
Share on social
Talk to a real person

We have managed 50+ homes on the Costa Blanca from our base in Orihuela Costa. Ask us anything about yours.

Got a question about your own property?

Send us the address and a few photos and we will come back with what we would expect it to earn, and what we would change to get there.

Link copied to clipboard!