If you’re planning to buy property in Alicante, one of the most important questions is:
👉 How much will I actually pay in taxes?
Because here’s the reality:
The purchase price is only part of the cost.
After working with many international buyers, one of the most common surprises I see is this:
👉 people underestimate taxes and total costs.
Let’s break everything down clearly — with real numbers.
What Taxes Do You Pay When Buying Property in Alicante
When buying property in Alicante, you’ll typically pay between 10% and 13% on top of the purchase price.
Here’s how it works.
Transfer Tax (ITP) — Resale Properties
If you buy a resale property, the main tax is:
- ITP (Transfer Tax): 10% in the Valencia region
👉 This is the biggest cost.
VAT + Stamp Duty — New Builds
If you buy a new property instead:
- VAT (IVA): 10%
- Stamp Duty (AJD): ~1.5%
👉 Total: 11.5%
Additional Purchase Costs
Beyond taxes, you should also budget for:
- Notary fees
- Legal fees
- Land registry
- Mortgage costs (if applicable)
👉 These usually add 1% – 3% extra
Real Example: Buying a €200,000 Property
Let’s make it simple.
👉 Property price: €200,000
Resale property:
- ITP (10%): €20,000
- Other costs (~2%): €4,000
👉 Total cost: ~€224,000
New build:
- VAT (10%): €20,000
- Stamp duty (1.5%): €3,000
- Other costs: €4,000
👉 Total cost: ~€227,000
💡 This is where many buyers get caught off guard.
Annual Property Taxes in Alicante
Once you own the property, there are ongoing taxes.
IBI (Property Tax)
This is the main annual tax.
- Based on cadastral value
- Typically: €200 – €800 per year
👉 Depends on location and property type
Non-Resident Tax (for foreigners)
If you’re not a Spanish tax resident:
- You must pay a small annual tax
- Typically: 0.19% – 0.24% of cadastral value
👉 Even if you don’t rent the property
Other Ongoing Costs
- Community fees (if apartment): €300 – €1,200/year
- Utilities and maintenance
Taxes When Selling Property in Spain
If you sell your property, there are also taxes to consider.
Capital Gains Tax
If you make a profit:
- EU residents: 19% – 23%
- Non-EU residents: around 24%
👉 Based on the profit, not the total price
Plusvalía Tax
This is a local tax based on land value increase.
- Varies depending on municipality
- Usually a few thousand euros
Real Example: Selling a Property
👉 Bought for: €200,000
👉 Sold for: €260,000
Profit: €60,000
- Capital gains tax (~19%): €11,400
- Plusvalía: varies (~€1,000–€3,000+)
👉 Net profit is lower than expected if not planned
Common Mistakes to Avoid
This is where most buyers lose money.
Underestimating total costs
Many people only look at the purchase price.
👉 Reality: add 10%–13% minimum
Not planning taxes in advance
Taxes affect:
- Profitability
- Investment returns
- Exit strategy
Assuming all areas behave the same
Different zones = different:
- IBI levels
- Property values
- Rental potential
How to Plan Your Property Purchase Properly
This is where strategy matters.
From experience, the best buyers do this:
- Calculate full cost before buying
- Choose property based on goals (investment vs lifestyle)
- Understand ongoing taxes
- Plan long-term
If you’re exploring options, you’ll find everything from Apartments for Sale in Alicante to Villas for Sale in Alicante, as well as Houses for Sale in Alicante depending on your budget and strategy.
👉 Need help understanding total costs before buying?
Get personalized guidance nowFinal Verdict
If I had to summarize it:
👉 Property taxes in Alicante are not complicated — but they are often underestimated.
If you plan properly, they won’t be a problem.
If you ignore them, they can seriously affect your investment.
FAQs About Property Taxes in Alicante
How much tax do you pay when buying property in Alicante?
Typically between 10% and 13% of the purchase price.
What is IBI tax in Spain?
It’s an annual property tax based on cadastral value.
Do foreigners pay property tax in Spain?
Yes — including non-resident tax even if the property is not rented.
What is the biggest cost when buying property?
Transfer tax (ITP) or VAT — usually around 10%.