👉 Buying property in Spain involves several taxes, typically ranging between 10% and 13% of the purchase price.
For many foreign buyers, this is one of the most confusing parts of the process. However, once you understand the structure, it becomes much easier to plan your investment.
👉 In simple terms, the total cost depends on whether you buy a new or resale property — and this makes a big difference.
Quick Answer: What Taxes Do You Pay When Buying Property in Alicante?
In Alicante, the main taxes are:
- Resale property → 10% Transfer Tax (ITP)
- New property → 10% VAT (IVA) + 1.5% Stamp Duty (AJD)
👉 In total, expect to pay around 10%–13% including all costs.
Resale Property Taxes (Most Common Case)
If you buy a resale property, the main tax is:
👉 ITP (Transfer Tax): 10%
This applies to:
- Second-hand properties
- Most properties on the market
For example:
If you buy a property for €200,000
👉 You will pay €20,000 in transfer tax
👉 From my experience, most foreign buyers fall into this category.
New Property Taxes (Developers & New Builds)
If you buy a new property from a developer, the structure changes.
You will pay:
- 10% VAT (IVA)
- 1.5% Stamp Duty (AJD)
👉 Total: 11.5%
Therefore, new properties are usually slightly more expensive in terms of taxes.
Additional Costs You Must Consider
In addition to taxes, there are other costs involved.
These typically include:
- Notary fees
- Land registry fees
- Legal fees
- Administrative costs
👉 As a result, the total cost usually reaches 10%–13% of the property price.
Explore properties with full cost clarity👉 apartments for sale in Alicante investment opportunities
Real Example: Total Cost Breakdown
Let’s look at a realistic scenario.
If you buy a property for €250,000:
- Transfer tax (10%) → €25,000
- Additional costs (~2%) → €5,000
👉 Total cost: ~€30,000
👉 This is why understanding taxes early is essential.
The Biggest Mistakes Foreign Buyers Make
Although the process is clear, many buyers make avoidable mistakes.
1. Not Including Taxes in the Budget
👉 Many buyers focus only on the property price.
However, taxes can add a significant amount.
2. Confusing New vs Resale Taxes
👉 These are completely different structures.
As a result, confusion here is very common.
3. Underestimating Additional Costs
👉 Legal and notary costs are often ignored at the beginning.
4. Not Planning Financially
👉 Without proper planning, buyers may face unexpected issues.
How I Help Clients Understand Real Costs
My approach is very practical and transparent.
To begin with, I explain all costs from the start. Then, I break down real numbers so there are no surprises later.
As a result, clients can make informed decisions with full clarity.
👉 In many cases, my role is not just to find properties, but to ensure the numbers actually make sense.
If you’re looking for investment-ready properties, you can explore options such as
👉 houses for sale in Alicante for rental income
Alternatively, for higher-end investments, consider
👉 villas for sale in Alicante high return properties
Are Property Taxes in Alicante High?
👉 No — compared to other European countries, Spain remains relatively competitive.
On one hand:
- Taxes are clear and standardized
- Costs are predictable
On the other hand:
- They must be planned properly
- They impact total investment
👉 Therefore, understanding them is key to making the right decision.
Final Verdict: Property Taxes in Alicante
👉 Taxes in Alicante are straightforward — but they must be included in your investment strategy from the beginning.
To avoid problems:
- Always calculate total costs
- Understand the type of property
- Plan your budget properly
- Work with professionals
👉 Ultimately, knowing the real numbers is what separates a good investment from a bad one.
FAQs: Property Taxes Alicante
What tax do you pay when buying property in Alicante?
Typically 10% for resale properties, or 10% VAT + 1.5% AJD for new builds.
How much are total costs when buying property in Spain?
Usually between 10% and 13% of the purchase price.
Do foreigners pay higher taxes in Spain?
No, taxes are the same for foreign and local buyers.
Are there ongoing taxes after buying property?
Yes, such as property tax (IBI) and possible rental taxes.