Question 1

Can foreigners buy property in Spain?

Accepted Answer

Yes — there are no restrictions. You need an NIE and a Spanish bank account.

Question 2

Do I need to be a resident to buy?

Accepted Answer

No. Most foreign buyers on the Costa Blanca are non-residents.

Question 3

Can Americans buy property in Spain?

Accepted Answer

Yes. US citizens have the same property rights as any other foreigner.

Question 4

Can Brits still buy property after Brexit?

Accepted Answer

Yes. Buying property is unaffected by Brexit; only long-stay residency rules changed.

Question 5

Do I need a Spanish lawyer?

Accepted Answer

Yes — always. An independent abogado runs all checks and protects your interests.

Question 6

How long does a Spanish purchase take?

Accepted Answer

Typically 6–10 weeks from offer accepted to keys.

Question 7

What's an arras contract?

Accepted Answer

The private purchase contract — you pay 10% deposit; either party defaults at a financial penalty.

Question 8

Can I sign at the notary by proxy?

Accepted Answer

Yes — via Power of Attorney granted to your lawyer.

Question 9

What is an NIE?

Accepted Answer

Número de Identificación de Extranjero — your Spanish tax ID as a foreigner. Essential for buying.

Question 10

What is the escritura?

Accepted Answer

The official Spanish title deed, signed at the notary.

Question 11

Are off-plan deposits safe?

Accepted Answer

Yes if the developer provides a Spanish bank guarantee, as required by law.

Question 12

Can I negotiate the asking price?

Accepted Answer

Yes. 5–10% below asking is a normal opening on the Costa Blanca.

Question 13

What are typical buying costs?

Accepted Answer

Plan for 10–13% on top of the purchase price.

Question 14

What is ITP?

Accepted Answer

Impuesto sobre Transmisiones Patrimoniales — transfer tax on resale property (8–10%).

Question 15

What is IVA on property?

Accepted Answer

10% VAT applies to new builds, plus 1.5% AJD stamp duty.

Question 16

What is IBI?

Accepted Answer

Spain's annual council tax, paid to the town hall.

Question 17

How much is notary?

Accepted Answer

Typically 0.3–0.5% of the price, set by law.

Question 18

How much are land registry fees?

Accepted Answer

0.1–0.25% of the price, also fixed by law.

Question 19

Are legal fees negotiable?

Accepted Answer

Yes — typically 1% + IVA with a €1,200–€1,500 minimum.

Question 20

What is plusvalía?

Accepted Answer

Municipal tax on the increase in cadastral land value during your ownership.

Question 21

Who pays plusvalía?

Accepted Answer

By law the seller, but it's negotiable in the arras contract.

Question 22

Do I pay capital gains in Spain?

Accepted Answer

Yes — 19% (EU) or 24% (non-EU) for non-residents, 19–28% for residents.

Question 23

Is there a wealth tax in Spain?

Accepted Answer

Yes. Thresholds and rates vary by autonomous region; Valencia region applies above €500,000.

Question 24

Are there annual taxes on holiday homes?

Accepted Answer

Yes — non-resident income tax (~0.2% of cadastral value) plus IBI.

Question 25

Do I pay tax on rental income?

Accepted Answer

Yes — quarterly via Form 210 for non-residents.

Question 26

Can I deduct expenses on rental income?

Accepted Answer

EU residents yes; non-EU residents cannot deduct under current law.

Question 27

What's stamp duty (AJD)?

Accepted Answer

Actos Jurídicos Documentados — typically 1.5% on new-build purchases and mortgages.

Question 28

Can I get a Spanish mortgage as a non-resident?

Accepted Answer

Yes — typically 60–70% LTV with fixed rates from around 3.2%.

Question 29

What documents do banks need?

Accepted Answer

Passport, NIE, 3 months payslips, 2 years tax returns, bank statements, employment contract.

Question 30

Can I get an interest-only mortgage in Spain?

Accepted Answer

Rare. Spanish loans are normally amortising capital + interest.

Question 31

What are typical mortgage terms?

Accepted Answer

20–25 years for non-residents, up to 30 for residents under 70 at end of term.

Question 32

Are mortgage rates fixed or variable?

Accepted Answer

Both — most non-residents now choose fixed for stability.

Question 33

Can I refinance my Spanish mortgage?

Accepted Answer

Yes — subrogación lets you move banks; rates renegotiated every 5–10 years.

Question 34

Does the bank pay any mortgage costs?

Accepted Answer

Yes — under current Spanish law banks pay most setup costs except the valuation.

Question 35

Can I rent my home on Airbnb?

Accepted Answer

Yes — with a tourist licence (VT) and provided your community allows it.

Question 36

How do I get a tourist licence?

Accepted Answer

Apply via the Valencia regional government. Property must meet minimum standards.

Question 37

How long are typical rental contracts?

Accepted Answer

1 year initially, with up to 5–7 years extension by law.

Question 38

What is the LAU?

Accepted Answer

Ley de Arrendamientos Urbanos — Spain's tenant protection law.

Question 39

How much deposit can a landlord ask for?

Accepted Answer

1 month legal fianza + up to 2 months additional guarantee.

Question 40

Can my landlord increase rent?

Accepted Answer

Only annually, capped at the government index (3% in 2026).

Question 41

Can I end the contract early?

Accepted Answer

Yes after 6 months with 30 days' notice (may have a small penalty).

Question 42

Are pets allowed in rentals?

Accepted Answer

Landlord's choice — always confirm in writing.

Question 43

Can a foreigner sign a long-term lease?

Accepted Answer

Yes — you'll need passport/NIE, income proof and deposit.

Question 44

What's the difference between long-term and temporada?

Accepted Answer

Long-term contracts grant LAU protections; temporada (seasonal) do not.

Question 45

Do I have to be in Spain to sell?

Accepted Answer

No — your lawyer can sign via Power of Attorney.

Question 46

How long does selling take?

Accepted Answer

Typically 3–9 months on the Costa Blanca.

Question 47

What's the 3% withholding?

Accepted Answer

Buyers withhold 3% of the price for non-resident sellers as an advance on CGT.

Question 48

Do I need an energy certificate to sell?

Accepted Answer

Yes — mandatory before listing.

Question 49

Can I sell with debts on the property?

Accepted Answer

Yes, but they must be cleared at the notary signing.

Question 50

How much do agents charge?

Accepted Answer

Typically 4–5% + IVA, paid by the seller.

Question 51

What yields can I expect?

Accepted Answer

4–5% long-term, 5–8% holiday let on the Costa Blanca.

Question 52

What's the best area for capital growth?

Accepted Answer

Moraira, Jávea and Altea have led capital growth recently.

Question 53

Is off-plan a good investment?

Accepted Answer

Can be — 10–25% gains in hot markets over 18–24 months, but check developer guarantees.

Question 54

Should I buy via a company?

Accepted Answer

Usually no for 1–2 properties. A company structure makes sense for portfolios.

Question 55

Is the Golden Visa still available?

Accepted Answer

No — Spain's property-based Golden Visa ended in April 2025.

Question 56

Can I use rental income for a mortgage?

Accepted Answer

Some banks consider it, especially for holiday rentals with track record.

Question 57

Do I need residency to own property?

Accepted Answer

No — owning property and being resident are unrelated.

Question 58

Does buying a home give me residency?

Accepted Answer

No — Golden Visa is closed; you need a separate visa route.

Question 59

What's the 183-day rule?

Accepted Answer

Spend 183+ days in Spain in a calendar year and you become tax resident.

Question 60

Can I bring my pet?

Accepted Answer

Yes — EU Pet Passport, microchip and rabies vaccination required.

Question 61

Are there international schools nearby?

Accepted Answer

Yes — Sierra Bernia, Lady Elizabeth, Xabia International College and more.

Question 62

Is healthcare free for residents?

Accepted Answer

Public healthcare is free for residents once registered with the SNS.

Question 63

Can I open a bank account before moving?

Accepted Answer

Yes — most Spanish banks offer non-resident accounts.

Question 64

Do I need home insurance?

Accepted Answer

Mandatory with a mortgage, strongly recommended otherwise. €200–€1,200/year.

Costa Blanca Property FAQs

Buying basics

Costs & taxes

Mortgages

Renting

Selling

Investment

Living & residency

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