Found a property you like on the Costa Blanca? Before you reserve it, work out how much you’ll need on top of the asking price. For a 250,000€ holiday home in Orihuela Costa, our example comes to 25,500€ in extra purchase costs for a resale or 31,500€ for a new build. Here’s how those figures add up, and what to budget for if you need a mortgage or are paying from a non-euro account.
Buying a resale home
When you buy a typical resale home in the Valencian Community, you pay ITP (property transfer tax). The general rate is 9% from 1 June 2026. An 11% rate generally applies where the property value exceeds 1,000,000€, and reduced rates are available in qualifying cases.
Ask your lawyer to check the property’s cadastral reference value (valor de referencia catastral). Where one applies, ITP is generally calculated on the highest of the reference value, the declared value and the agreed purchase price. So if the reference value is higher than the price you negotiate, it may increase your tax bill.
Buying a new build
On a typical first sale of a home by a developer, you pay 10% IVA (Spanish VAT). The notarised purchase deed also generally attracts AJD (stamp duty). The general Valencian AJD rate is 1.4% from 1 June 2026, with a 0.1% rate for qualifying main-home purchases.
Ask the developer whether the advertised price includes IVA and request a payment schedule showing the tax due at each stage. That lets you budget for payments during construction as well as the balance at completion.
What does a 250,000€ property really cost?
This example compares two holiday-home purchases in the Valencian Community. It assumes the taxable base is 250,000€ in both cases and the developer’s price excludes IVA. The 3,000€ allowance for legal, notary and Land Registry costs is illustrative. Ask your lawyer for an itemised estimate and check whether it includes VAT. Vistacasas does not charge buyers an agency fee.
Resale home
Purchase price: 250,000€
ITP at 9%: 22,500€
Estimated legal, notary and Land Registry costs: 3,000€
Costs above the purchase price: 25,500€
Total budget: 275,500€
New-build home
Purchase price before IVA: 250,000€
IVA at 10%: 25,000€
Purchase-deed AJD at 1.4%: 3,500€
Estimated legal, notary and Land Registry costs: 3,000€
Costs above the purchase price: 31,500€
Total budget: 281,500€
The example excludes mortgage and currency conversion costs.
How much cash do you need with a mortgage?
If a bank approves a 150,000€ mortgage on a 250,000€ property, your contribution towards the price is 100,000€. Using the example above, you’d need 125,500€ for the resale or 131,500€ for the new build, plus any mortgage costs you pay and any currency conversion costs. A reservation payment credited towards the price already counts towards your contribution.
Ask the bank how it calculates the loan amount. A lower valuation can reduce what it will lend and increase the cash you need. The buyer generally pays for the valuation. The bank pays the mortgage deed’s notary, Land Registry and administration costs, along with the AJD on the mortgage deed. Any AJD due on the purchase deed is a separate purchase cost. Check your mortgage offer for any arrangement fee.
Paying in pounds or another currency?
Even when the euro price is fixed, the amount you pay in pounds or another currency can change between reservation and completion. Compare how much you’ll pay in your own currency for the exact number of euros you need to send, including fees. For a new build, check the timing of stage payments as well as the final balance.
Vistacasas partners with Currencies Direct. If you’re buying with pounds or another currency, visit Currencies Direct through our referral link to discuss exchange rates, transfer costs and payment timings. You can also ask the Vistacasas team to arrange an introduction.
Working out the budget for a specific property?
Tell us which property you’re considering and how you plan to fund the purchase. Our team at Villamartin Plaza and Playa Flamenca can help you work through the likely costs and identify what to confirm with your lawyer or lender before you reserve.
Tax rates checked on 14 November 2026. Official sources include the Valencian tax legislation (ITP and AJD), Agencia Tributaria (IVA on home purchases) and Banco de España (mortgage expenses).
