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.
North (Dénia, Jávea, Moraira, Altea): greener, hilly, higher-priced, popular with German buyers. South (Torrevieja, Orihuela Costa): flatter, cheaper, internationally mixed — and easier for the bank to value.
Roughly 30% equity on the purchase price plus around 10% costs. Banks finance up to 70% of the lower of purchase price and Tasación.
Comunitat Valenciana: resale ITP 9%, 11% above €1m (Ley 5/2025, since 1 June 2026). New build: 10% IVA plus AJD.
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.
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.
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.
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.
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.
The Costa Blanca lies in the Comunitat Valenciana — ITP transfer tax 9% on resale (11% above €1m of taxable value), or 10% IVA plus AJD stamp duty on new builds. Wealth-tax allowance €500,000 per person.
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.
Concrete sample calculations for typical foreign buyers — as a guide for your own plan. North and south differ markedly.
| Item | Amount |
|---|---|
| Equity | €128,000 (40%) |
| Mortgage | €192,000 (60%) |
| Purchase costs (~10%) | ~€32,000 (ITP 9%) |
| Loan-to-value | 60% LTV |
| Example payment (20 yrs, 3.1%) | ~€1,069/month |
| Bank type | Major Spanish bank · Alicante |
Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.
| Item | Amount |
|---|---|
| Equity | €54,000 (30%) |
| Mortgage | €126,000 (70%) |
| Purchase costs (~10%) | ~€18,000 |
| Loan-to-value | 70% LTV |
| Example payment (20 yrs, 3.1%) | ~€701/month |
| Bank type | Major Spanish bank · Alicante province |
Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.
Pre-filled with typical values for this region — adjust and calculate.
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.
The complete breakdown with your exact figures — loan, equity required, total interest — straight to your inbox.
The Costa Blanca belongs to the Comunitat Valenciana. What counts is where the property lies, not where the owner lives. A paid-off property in the Costa Blanca does not have to be sold to free up capital — it can be mortgaged instead.
For inheritance, the rules of the autonomous community holding the highest value of the Spanish estate apply. With a single Spanish property that is simply its region. The relief must be claimed within the filing deadline — miss it and it becomes contentious.
How far a Spanish bank will go on an unencumbered property, what changes with the owner's age, and what the released money may be used for is set out in full under releasing capital from a Spanish property.
A gift of the released money to a child is taxed in Germany, not in Spain — see inheritance and gift tax in Spain. This is not tax advice; Inheritance tax, groups I and II (parents, children, spouses). Autonomous tax law changes; review quarterly.
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.
Monthly instalment, total cost and equity requirement for your exact figures.
Anonymised examples of how buyers financed their property on the Costa Blanca.