Guide for Foreigners: How to Buy a House on the Costa Blanca

Buying a property on the Costa Blanca is an excellent option for those looking for a second home, an investment or a place to retreat to in the Mediterranean sunshine. If you are a foreigner and are thinking of buying a property in this part of Spain, here is a complete guide to the key steps and legal aspects you need to consider.

Obtaining a NIE (Foreigner's Identification Number)

The NIE is an essential requirement for any foreigner wishing to buy a property in Spain. This number is necessary to carry out any financial or legal transaction in the country

How to obtain the NIE?

• You can apply at the police station in Spain or at the Spanish consulate in your country of origin.
• It requires completing form EX-15, presenting a copy of your passport and paying a small fee.

Defining Budget and Financing Options

Before starting your property search, it is essential to define a realistic budget.

• If you need financing, Spanish banks offer mortgages for foreigners, generally with financing of 60-70% of the value of the property.
• Financial advice is recommended to evaluate the best credit options and banking conditions.

Finding the Right Property

The Costa Blanca offers a wide variety of properties: flats on the beachfront, villas in private urbanisations or rustic houses in the interior.

• It is advisable to have a real estate agency specialising in foreign clients to facilitate the process.
• Investigate the location, proximity to amenities, transport links and potential for property appreciation.

Making an Offer and Signing the Reservation Contract

Once the property has been chosen, it is usual to sign a reservation contract, giving a deposit (normally between 3,000 and 6,000 €) to secure the purchase while the legal documents are being prepared.

• The amount paid in advance is deducted from the final price.

• It is recommended to have a lawyer specialised in real estate law to review the terms of the contract and ensure that everything is in order.

Conducting Due Diligence and Signing the Lease Contract

Before the final signing, the lawyer will carry out a due diligence to check:

• That the property is free of encumbrances and debts.
• That the documentation is in order (title deeds, energy certificates, etc.).
• That tax and community payments are up to date.

If everything is correct, the deposit contract is signed, where the buyer pays 10% of the total price as a commitment to purchase.

Signing of the Title Deed before a Notary

The final step is the signing of the deed of sale before the notary, where the remaining payment is made and the property is officially received.

• The Transfer Tax (ITP) is paid if it is a second hand property or VAT + AJD if it is a new construction.
• The notary will register the property in the Land Registry.

Costs Associated with Buying a Property on the Costa Blanca

When buying a property in Spain, it is important to consider the additional costs:

• Taxes: 10% of the value of the property (depending on whether it is new or second hand).
• Notary and Registry: Approximately 1-2%.
• Agency and lawyer fees: 1-3%.

Arranging Services and Maintenance

After purchase, it is necessary to:

• Change the ownership of the utilities (water, electricity, gas, internet).
• Take out home insurance.
• If it is a second residence, consider the maintenance and community fees.

Conclusion

Buying a property on the Costa Blanca as a foreigner is an accessible process if you follow the right steps and have the necessary advice. With a good financial plan, the support of professionals and an informed choice of property, you will be able to enjoy your new home in one of the most privileged areas of Spain.

If you need help with the purchase of your property on the Costa Blanca, contact our real estate agency and we will guide you through the whole process!