The province of Alicante has been the strongest market for foreign property buyers in Spain for years. From Dénia to Torrevieja: two markets, one adviser on the ground.
How high is the transfer tax on the Costa Blanca?
On the Costa Blanca the ITP rate of the Valencian Community applies. Since 1 June 2026 (Law 5/2025) the general rate is 9 % of the higher of purchase price and cadastral reference value — previously 10 %. Above €1m it rises to 11 %; this mainly affects the premium spots Jávea, Moraira and Altea, where many villas exceed the million mark. For the typical second home under €1m — Dénia, Calpe, Torrevieja, Orihuela Costa — the 9 % rate applies. The ITP is the single largest cost block; budget around 10 to 13 % in total costs. Important for financing: the bank lends against the lower of purchase price and tasación and finances the price, not the incidental costs — you cover the ITP from equity. Alicante airport serves the whole coast. As of 07/2026.
Market analysis
Costa Blanca — north and south compared
Costa Blanca North
Dénia, Jávea, Moraira, Calpe, Altea
A green, hilly coast with pine woods and established northern-European communities. Premium: Jávea, Moraira, Altea. Mid-range: Calpe, Benissa, Dénia. Price per square metre €2,500–4,500.
Costa Blanca South
Torrevieja, Orihuela Costa, Guardamar
Flatter, drier, a lower entry price. Large international communities — British, Scandinavian, Belgian, German. New-build urbanisations with a communal pool. Price per square metre €1,500–2,800.
Buyer profile
No. 1 for foreign buyers
The province of Alicante has topped the statistics for property purchases by foreigners in Spain for years. British, German, Belgian, Dutch, Norwegian and Swedish buyers form the core.
Rental market
Holiday lets dominate
Solid gross yields in tourist locations. Short-term letting requires a licence (Vivienda Turística, VT) from the Comunitat Valenciana. Year-round letting is possible in the south.
Tax
ITP 10% Comunitat Valenciana
The Costa Blanca lies in the Comunitat Valenciana — ITP transfer tax 10% on resale, or 10% IVA plus AJD stamp duty on new builds. Wealth-tax allowance €500,000 per person.
Access
Alicante airport (ALC)
One of Spain's busiest airports, with direct flights from many northern-European cities. The north is also reachable via Valencia (VLC) in about an hour.
Example financings
Two example cases from the Costa Blanca
Concrete sample calculations for typical foreign buyers — as a guide for your own plan. North and south differ markedly.
North · Jávea
Apartment near the sea · €320,000
Equity€128,000 (40%)
Mortgage€192,000 (60%)
Purchase costs (~11%)~€35,200 (ITP 10%)
Loan-to-value60% LTV
Example payment (20 yrs, 3.1%)~€1,069/month
Bank typeBanco Sabadell · Alicante
Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.
South · Orihuela Costa
Townhouse with pool · €180,000
Equity€54,000 (30%)
Mortgage€126,000 (70%)
Purchase costs (~11%)~€19,800
Loan-to-value70% LTV
Example payment (20 yrs, 3.1%)~€701/month
Bank typeBBVA · Alicante province
Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.
Mortgage calculator
Calculate your costs quickly
Pre-filled with typical values for this region — adjust and calculate.
Your financing & total-cost overview (guide value)
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Guide value without guarantee. Spain: max. 70%, Portugal: max. 80% loan-to-value for non-residents. Purchase costs = ITP/IMT + notary + land registry + lawyer + NIE/NIF. Total outlay = equity + purchase costs + all payments over the term. For a binding offer, contact us.
Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.
FAQ
Frequently asked questions about the Costa Blanca
Costa Blanca north or south — which suits me?
The north (Dénia, Jávea, Moraira, Altea) is greener, hilly, higher-priced and very popular with German buyers. The south (Torrevieja, Orihuela Costa, Guardamar) is flatter, drier, cheaper to enter and internationally mixed. Both are financeable — the choice of bank follows the location.
How much equity do I need on the Costa Blanca?
As a non-resident, typically 30–40% equity on the purchase price plus around 11% costs. Spanish banks usually finance up to 60–70% of the purchase price or the Tasación value — the lower figure applies. With a strong credit profile, exceptions are possible.
How high is the transfer tax (ITP)?
The Costa Blanca belongs to the Comunitat Valenciana. On a resale property ITP is 10%. On a new build you pay 10% IVA plus AJD stamp duty (1.5% in this region). Notary, land registry, lawyer and the NIE are additional.
Which banks finance in Alicante province?
Banco Sabadell (strong regionally in Alicante), CaixaBank, BBVA, Santander and Bankinter have non-resident programmes. Which bank offers the best terms in your case, I find through comparison. Terms as elsewhere in Spain: up to 70% LTV, term up to 25 years.
Can I let my Costa Blanca property to holidaymakers?
Yes, with a tourist-letting licence (Vivienda Turística) from the Comunitat Valenciana. Without one, short-term letting is prohibited and penalised. Some owners' communities also restrict holiday letting — check the statutes beforehand.
Planning a purchase on the Costa Blanca? A free initial consultation in English — also German, French, Dutch, Spanish, Russian. I review your situation and find the right bank in Spain.
Content by Siegfried Perini — local brand representative since 2019, active in real estate since 1992. Point of contact for German-speaking buyers in Spain and Portugal. Brokerage by Olga Nikushkina, mortgage credit intermediary under §34i German Trade Regulation (GewO), notified for Spain and Portugal via the German BAFA.