Thinking about buying a holiday home, retirement property or investment on Spain’s Costa Blanca or in the wider Alicante and Murcia region? This guide walks you through the entire process — the real costs, the paperwork, the timeline and the mistakes to avoid — written by a local, family-run agency that helps international buyers in English, German, Dutch and French every week.
Why the Costa Blanca?
Over 300 days of sunshine a year, some of Europe’s best-value coastal property, Blue-Flag beaches, world-class golf, and an international airport (Alicante) with direct flights to almost every city in Northern Europe. The region consistently ranks among the healthiest climates in the world according to the WHO, and the cost of living remains well below Northern European levels. It’s no surprise the province of Alicante is Spain’s most popular destination for foreign buyers.
Broadly, the coast has two characters. The north (El Campello, Alicante city, Altea, Finestrat, Benidorm) is greener and more dramatic, with mountains meeting the sea, and mixes authentic Spanish town life with upscale villas. The south (Torrevieja, Orihuela Costa, Algorfa, Benijófar) and neighbouring Costa Cálida in Murcia (Mar Menor, Torre Pacheco, Los Alcázares) offer exceptional value, flat golf-resort living and large, well-established international communities. Neither is “better” — they suit different buyers, which is exactly the conversation to have before you fly out.
The buying process, step by step
Define your brief. Budget, locations, must-haves, and how you’ll use the home (holidays only, wintering, renting out, eventual relocation). A good agent will match you to areas — not just to listings.
Get your NIE. The Número de Identidad de Extranjero is the Spanish tax identification number every foreign buyer needs. You can apply via the Spanish consulate in your home country or in Spain; your lawyer can arrange it with power of attorney.
Appoint an independent lawyer. Non-negotiable. An English-speaking abogado (typically ~1% of the price) checks the property is debt-free, correctly registered, has its licences, and reviews every contract before you sign. We can introduce vetted, independent lawyers who work in your language.
Arrange your finances. Non-residents can typically borrow 60–70% of the price from Spanish banks. If you’re transferring money from abroad, a currency specialist rather than your bank can save you 1–3% on the exchange — a meaningful amount on a property purchase.
View — in person or by video. We organise viewing trips and full video tours for buyers who can’t fly out immediately.
Reserve and sign. A reservation contract (typically €3,000–€6,000) takes the property off the market. Then the private purchase contract (contrato de arras) is signed with a 10% deposit. For new-build off-plan homes, staged payments are protected by bank guarantees — your lawyer verifies these.
Complete at the notary. The title deed (escritura) is signed before a Spanish notary, the balance is paid, and you receive the keys. Resales typically complete in 6–12 weeks from the offer; new builds on the developer’s delivery date.
What it really costs
Budget roughly 12–14% on top of the purchase price to cover everything. The main items:
Transfer tax (ITP) on resale properties: 7–10% depending on the region (10% in the Valencia region, which includes Alicante; 8% in Murcia; 7% in Andalucía/Almería).
VAT (IVA) of 10% plus stamp duty (AJD) of ~1.2–1.5% on new-build properties, instead of ITP.
Notary and land registry: usually €1,500–€2,500 combined.
Independent lawyer: typically ~1% of the price.
Mortgage costs (if financing): valuation and arrangement fees.
Ongoing costs are modest by Northern European standards: annual property tax (IBI), community fees if the home is in a development, utilities, home insurance, and a small annual non-resident tax declaration. As a rule of thumb, a €250,000 apartment costs €2,000–€3,500 a year to hold.
Renting it out when you’re not there
Many owners cover their running costs (and more) with holiday rental income — coastal Alicante and Murcia enjoy strong year-round demand. Short-term tourist rental rules vary by region and are changing: a tourist licence is required, and new licences are restricted in some areas. If rental income matters to your plans, tell your agent before you choose the property — it affects which homes and communities qualify.
Five mistakes foreign buyers make
Buying the property before choosing the area. Spend a day in a town before you buy in it — off-season if possible.
Skipping the independent lawyer or using one recommended by the seller.
Underestimating the full cost — remember the 12–14% on top.
Losing money on the currency exchange by transferring through their regular bank.
Going it alone with no local representative — in Spain the listing agent works for the seller. As a family agency we represent you, in your language, from first viewing to keys and beyond.
How we help
Butters Rüben is a family-run, APIVA-licensed estate agency on the Costa Blanca. We speak English, German, Dutch and French, we work across the provinces of Alicante and Murcia, and we guide international buyers through every step above — including introductions to independent lawyers, currency specialists and non-resident mortgage brokers.
Tell us what you’re looking for — budget, areas, must-haves and timeline — and we’ll send you a hand-picked selection with video tours, in your language:
Want new listings that match your search, plus buying tips, in your inbox once a month? Ask for our property alerts when you get in touch.
This guide is general information, not legal or tax advice. Rules and tax rates vary by region and change over time — your independent lawyer will confirm the exact figures for your purchase.