Legal Guide for European Citizens Buying Property on the Costa Blanca

Legal Guide for European Citizens Buying Property on the Costa Blanca

Buying property in Spain as a European citizen is a straightforward process, but it requires a clear understanding of the legal, tax and administrative aspects involved. On the Costa Blanca, one of the most popular destinations for international buyers, mistakes often occur due to lack of proper legal advice.

This guide explains, step by step, everything a European buyer should know before purchasing a property in Spain.

Can European citizens buy property in Spain?

Yes. Citizens of the European Union can buy property in Spain without any restrictions, whether they are residents or non-residents.

It is not necessary to:

• Have Spanish residency
• Have a work permit
• Live permanently in Spain

European buyers have the same purchasing rights as Spanish citizens.

NIE number: what it is and why it is essential

The NIE (Foreigner Identification Number) is mandatory for any foreign buyer. Without it, it is not possible to:

• Sign the title deed
• Pay taxes
• Register the property at the Land Registry

Where can it be obtained?

• In Spain (Police Station)
• At the Spanish Consulate in the buyer’s home country

Practical advice

Apply for the NIE as early as possible. In practice, processing times are often longer than expected and delays can affect the purchase if it is not arranged in advance.

Is a Spanish bank account required?

It is not legally mandatory, but it is strongly recommended.

A Spanish bank account makes it easier to:

• Pay taxes and purchase-related expenses
• Set up utilities and community fees
• Avoid delays or blocks with international transfers

Many foreign buyers underestimate this step and encounter problems shortly before completion.

Taxes when buying property in the Valencian Community

Taxes depend on whether the property is new build or resale.

Resale property

• Transfer Tax (ITP): 10% of the purchase price

New build property

• VAT (IVA): 10%
• Stamp Duty (AJD): 1.5%

These taxes must be correctly calculated and paid within the legal deadlines.

Additional costs buyers should consider

In addition to the purchase price and taxes, buyers should budget for:

• Notary fees
• Land Registry fees
• Administrative and management costs
• Legal fees
• Sworn translations, if the buyer does not speak Spanish

Proper financial planning helps avoid unexpected costs after completion.

Common mistakes made by European buyers

In transactions involving international buyers, the most frequent mistakes include:

• Signing a reservation contract without prior legal review
• Relying solely on information provided by the developer or bank
• Failing to check debts, charges or planning status
• Assuming the buying process works the same way as in their home country

Each property purchase in Spain must be reviewed individually.

The importance of independent legal advice

Having an independent lawyer specialised in Spanish property law is essential to:

• Verify the legal and planning status of the property
• Review contracts and clauses
• Represent the buyer through a power of attorney
• Ensure a safe and risk-free purchase

For international buyers, multilingual legal assistance is especially important.

Conclusion

The Costa Blanca offers excellent property opportunities for European citizens, whether as a permanent residence, holiday home or investment. However, a secure purchase depends on proper legal and tax planning from the very beginning.

Working with a real estate team specialised in international buyers and offering full legal assistance makes the difference between a smooth transaction and future problems.