Retirement Housing Costs on the Costa Blanca

Long-term rent (12-month contracts)

Holiday rental sites distort the picture. Real long-term contracts (contrato de arrendamiento de vivienda habitual) are 30–50% cheaper than short-term equivalents and are what retirees actually sign once they're past the first 3-month settling-in period.

Buying — typical retiree purchase prices

Most retirees buy a 2-bed flat near amenities or a 2/3-bed villa/townhouse with a small pool. Prices are €/m² for resale stock in normal condition (not new-build, not luxury front-line).

Recurring ownership costs

• ✦IBI (council tax): €300–€900/year on a flat, €600–€1,800 on a villa.
• ✦Basura (rubbish): €80–€180/year.
• ✦Community fees: €40–€90/month for a flat with pool; €120–€250 for a gated villa community.
• ✦Home insurance: €250–€500/year on a flat, €400–€900 on a villa.
• ✦Pool maintenance (own): €80–€140/month including chemicals.
• ✦Non-resident wealth/imputed income tax: ~0.5% of cadastral value/year if not tax-resident.

Rent vs buy decision rule

If you're 65+ and plan to stay 7+ years in the same town, buying outright (no mortgage) usually wins because you eliminate landlord risk and rent inflation. If you're still scouting towns, rent for 12 months first — moving costs in Spain (10–13% transaction tax on resale property) punish quick flips.

What changes after age 70

• ✦Single-storey villas or flats with lifts become essential — many older Spanish blocks have no lift (sin ascensor).
• ✦Step-free walk to a pharmacy, supermarket and centro de salud matters more than sea views.
• ✦Smaller properties (60–90 m²) are easier and cheaper to maintain.
• ✦Communities with concierge or maintenance staff reduce admin you no longer want to handle.