Don't Sign Anything Yet: The Complete Expat Guide to Buying Property in Costa Blanca, Spain (2026)

So, you've fallen in love with the Costa Blanca. The light, the warmth, the smell of orange blossom in the air, the €300,000 villa with a pool that would cost £1.2 million back home. We completely understand.

But before you let the emotion of a Saturday afternoon viewing carry you all the way to a signed contrato de arras, there are things you need to know - things that Spanish estate agents, and even some lawyers, won't always spell out for you.

This guide is written specifically for expats buying in the Costa Blanca: the stretch of Mediterranean coastline running from Dénia and Jávea in the north, through Calpe, Altea, Benissa and Moraira, down to Alicante and beyond. Whether you're buying a holiday home, planning a permanent move, or investing in rental property, the process is the same - and the pitfalls are very real.

Let's walk through it, step by step.

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Step 1: Get Your NIE Number (Before You Do Anything Else)

Your NIE (Número de Identidad de Extranjero) is your Spanish tax identification number. You cannot buy property, open a Spanish bank account, sign contracts, or pay taxes without one. It sounds simple. It isn't always.

How to get it:

• Apply at a Spanish consulate in your home country before you travel, or

• Apply in person at a Comisaría de Policía or Oficina de Extranjería in Spain

You'll need your passport, a completed EX-15 form, proof of reason for application (a purchase intention letter works), and a small fee paid via Modelo 790.

Processing times vary. In busy areas of the Costa Blanca like Benidorm or Alicante, allow several weeks. Apply early - you cannot exchange contracts without it.

Tip: Many gestorías (local administrative agents) can handle this for you for €100–€150, which is money very well spent.

Step 2: Open a Spanish Bank Account

You'll need a Spanish bank account to pay your mortgage (if applicable), utility standing orders, community fees, and IBI (local property tax). Most buyers use Sabadell, BBVA, or CaixaBank - all have English-speaking staff in expat-heavy areas.

Some banks will open accounts for non-residents; others require residency. Check before you visit. You'll typically need your NIE, passport, and proof of address.

Step 3: Understand What You Can Actually Afford - Including the Costs Nobody Mentions

This is where many expats get a nasty surprise. In Spain, the buyer pays all transfer costs. On a resale property (which most Costa Blanca purchases are), budget for:

Cost	Approximate Amount
ITP (Transfer Tax)	10% of purchase price in Valencia Region
Notary fees	€600–€1,200
Land Registry fees	€400–€900
Lawyer fees	1–1.5% of purchase price
Mortgage arrangement fee (if applicable)	0.5–1%
Property survey	€350–€800 depending on property size
Total additional costs	Typically, 12–14% on top of the purchase price

So, if you're buying a €350,000 villa, you need to budget approximately €42,000–€49,000 on top of that figure. Plan accordingly.

Step 4: Hire an Independent Spanish Lawyer - Not the Agent's Lawyer

This is non-negotiable. You need your own solicitor (abogado), independent of the agent and the seller.

Your lawyer should:

• Conduct title searches at the Land Registry (Registro de la Propiedad)

• Check there are no outstanding debts, charges, or mortgages attached to the property

• Verify the property's legal status - particularly important for rural properties (finca rústica) where illegal builds are common

• Confirm planning permissions and licences of occupation (cédula de habitabilidad)

• Review the community of owners' statutes and any outstanding community fees

• Verify the seller's right to sell

Why does this matter in Costa Blanca specifically? The Valencia region has a complicated history with urbanisation law. Properties built without full legal paperwork - especially older rural villas and townhouses - are not uncommon. A property with illegal extensions can be demolished. A property without a licence of occupation cannot legally be connected to utilities. Your lawyer catches these things. An estate agent does not.

Expect to pay €1,500–€3,000 for comprehensive legal representation. It is the best money you will spend.

Step 5: Make an Offer and Sign the Reservation Contract

Once you've found your property and done initial due diligence, you'll typically pay a reservation fee (usually €3,000–€6,000) to take the property off the market while legal checks are completed.

This reservation is usually refundable if serious legal issues are discovered. Make sure your lawyer reviews this contract before you sign or pay anything.

Step 6: Sign the Contrato de Arras (Private Purchase Contract)

This is the big one. The contrato de arras is a legally binding private contract between you and the seller. At this point, you typically pay 10% of the purchase price.

Under standard arras penitenciales:

• If you pull out, you lose your 10% deposit

• If the seller pulls out, they must pay you back double (20%)

This contract should be drafted or reviewed by your lawyer. It will include the agreed price, the completion date, what's included in the sale (furniture, appliances, fittings), and any conditions.

This is the point at which you absolutely must have had a building survey done. Once this contract is signed and your 10% is on the table, you need certainty about the physical condition of the property. Discovering structural issues, a failing roof, or illegal electrical wiring after this point is an expensive and stressful position to be in.

Step 7: Get a Building Survey - The Step Most Expat Buyers Skip (and Regret)

Here's an uncomfortable truth: Spanish property law operates on the principle of caveat emptor - buyer beware. Unlike the UK, there is no legal obligation for a seller to disclose defects. If you buy a property and discover that the roof leaks, the retaining wall is failing, or there's moisture ingress behind the bathroom tiles, that is largely your problem.

The good news: A professional building survey by a qualified surveyor will reveal these issues before you complete.

In Costa Blanca, a proper building inspection should cover:

• Structural integrity — foundations, load-bearing walls, lintels

• Roof condition — tiles, waterproofing, flashings, gutters

• Damp and moisture ingress — including thermal imaging to reveal hidden leaks

• Electrical installations — age, condition, compliance

• Plumbing systems — pipework condition, boiler, water pressure

• Pools and outbuildings — structural condition, retaining walls

• Envelope and thermal bridges — energy performance, condensation risk

A survey typically costs between €350 and €800 depending on the size and complexity of the property. Consider what you're protecting: a €350,000 purchase. A roof replacement in Spain costs €8,000–€25,000. A structural issue can cost far more.

Thermal imaging is particularly valuable in older Costa Blanca properties, where moisture can be concealed behind render, tiles, and paint. What looks dry to the eye may be saturated behind the surface.

At Home Survey Quote, we connect buyers in Costa Blanca with experienced, UK-qualified, RICS-accredited building surveyors. Our surveyors are English-speaking, locally based, and cover the entire Costa Blanca and Valencia coast - from Dénia and Jávea in the north to Alicante and Villajoyosa in the south.

Get a free, fixed-fee survey quote here →

Step 8: Secure Your Mortgage (If Applicable)

If you're financing part of your purchase, you'll need a Spanish mortgage. Spanish banks typically lend non-residents up to 60–70% of the property's assessed value (tasación).

Key points:

• The bank will conduct their own valuation - this is not the same as a building survey and does not assess physical condition

• Get mortgage approval in principle before signing the contrato de arras

• Fixed-rate mortgages are now increasingly popular in Spain after the Euribor volatility of 2022–2024

• Allow 4–8 weeks for the mortgage process

Step 9: Completion at the Notary (Firma ante Notario)

Completion takes place at a notary's office. Both buyer and seller (or legal representatives with poder notarial - power of attorney) must be present.

At the notary, you will:

• Sign the escritura de compraventa (deed of sale)

• Pay the remaining balance (usually via banker's draft)

• Receive the keys

The notary checks the legal validity of the transaction but does not represent either party. Your lawyer represents you.

After signing, your lawyer will register the purchase at the Land Registry and ensure taxes are paid. This process takes several weeks.

Step 10: After Completion - The Things New Owners Often Forget

Buying the property is the beginning, not the end. After completion:

• Change utilities into your name — electricity (Iberdrola or Endesa), water (local municipality), gas if applicable

• Register with your local ayuntamiento (town hall) on the padrón (municipal register) — this is important for healthcare access and school enrolment

• Set up an IBI direct debit — this is annual local property tax, collected by the municipality

• Check community fees — if you're in a urbanización (residential complex), you'll pay monthly community charges covering maintenance of shared areas, pool, etc.

• Consider non-resident income tax — even if you don't rent the property out, non-residents with Spanish property pay an annual imputed income tax (IRNR)

• Take out Spanish home insurance — required by most mortgage lenders and sensible regardless

Common Mistakes Expats Make When Buying in Costa Blanca

1. Trusting the estate agent's lawyer Agents often recommend lawyers with whom they have a financial relationship. Always hire your own.

2. Skipping the survey The number one regret we hear from buyers who've had problems. Spanish sellers are not required to disclose defects. You must find them yourself.

3. Not verifying planning status Illegal extensions, outbuildings, and pools built without licences are surprisingly common — particularly in rural areas around Jalón, Orba, and Pedreguer. Your lawyer and surveyor should both check this.

4. Buying without an NIE You cannot complete without one. Don't leave this until the last minute.

5. Underestimating purchase costs 10% transfer tax plus notary, registry, legal, and survey fees means budgeting 13–14% on top of the purchase price. Many buyers are caught short.

6. Assuming the mortgage valuation is a survey A bank valuation assesses value for lending purposes. It does not inspect the building's physical condition. You need both.

7. Completing in summer Completion during July and August can be slow — Spanish law firms take August holidays seriously. If your timeline allows, aim for spring or autumn.

Why the Costa Blanca? A Word for the Undecided

If you're still weighing up whether to take the plunge, here's what draws people - and keeps them:

Year-round sunshine. The Costa Blanca averages over 320 days of sunshine annually. Winters are mild with daytime temperatures regularly reaching 18–20°C.

Value for money. Compared to the French Riviera, the Algarve, or Tuscany, property in Costa Blanca still represents extraordinary value. A four-bedroom villa with a pool and mountain views costs a fraction of equivalent properties elsewhere in the Mediterranean.

Infrastructure. Alicante Airport (ALC) has direct connections to most UK and northern European cities, often multiple times daily. The AP-7 motorway runs the length of the coast. Benidorm, Denia, and Alicante city offer excellent hospitals, international schools, and amenities.

Community. There is an established, well-connected expat community across the Costa Blanca - particularly in areas like Moraira, Jávea, Calpe, Altea, and the Jalón Valley. Integration is easier than almost anywhere else in Spain.

Rental potential. With tourism numbers at record highs, rental yields in Costa Blanca are strong. A well-located property in Jávea or Moraira can generate significant income during the summer months.

Ready to Buy? Start With a Survey.

You've done your research, fallen in love with a property, and you're ready to move forward. Before you sign the arras and commit your deposit, get a professional building survey.

At Home Survey Quote, we provide fixed-fee quotes for building inspections across the entire Costa Blanca and Valencia coast. Our surveyors are:

• UK-qualified and RICS / CIOB accredited

• English-speaking and locally based

• Experienced specifically in Spanish construction methods and common defects

• Equipped with thermal imaging technology for hidden damp and electrical diagnostics

A survey takes a few days to arrange and a few hours to complete. The report gives you clarity, negotiating power, and peace of mind - before your money is committed.

Get your free, no-obligation quote today →

This guide is intended for informational purposes only and does not constitute legal or financial advice. Always consult a qualified Spanish lawyer for advice specific to your circumstances.