Apartment near the sea · €320,000
| 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, 2.4%) | ~€1,010/month |
| Bank type | Major Spanish bank · Alicante |
Region focus · Spain · §34i
Buy property on the Costa Blanca: how much equity non-residents need
The province of Alicante has been the strongest market for foreign property buyers in Spain for years, and Costa Blanca property runs 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 you pay the ITP of the Valencian Community: generally 9 % of the higher of purchase price and cadastral reference value, rising to 11 % above €1m. The ITP is the single largest cost block; budget around 10 to 13 % in total costs, which you cover from equity.
Not every bank lends against income in a foreign currency — we approach the ones that do. For the full evaluation, enter your income converted into euros.
Your estimate
- Monthly payment(calculation rate—)—
- Loan amount—
- Loan-to-value (LTV)—
- Purchase costs—
Our brokerage focus starts at a loan amount of around €300,000 — we arrange smaller loans too and will give you an honest read on whether it makes sense in your case.
Estimate, no guarantee. The interest rate is the calculation basis for this example, not a market rate or commitment — the rate you actually achieve depends on your credit profile, the property and the bank. Spain: max. 70 % LTV for non-residents. Purchase costs by region as on our purchase-costs page; the other items are guide values.
Buy property on the Costa Blanca: which three financing cases do bank branches fail on?
Spanish banks only pay out for new builds at the completion/sign-off of the building; they finance purchases, not equity release, and they are unable to value German properties.
- North: greener and more expensive; South: cheaper and easier to value: North (Dénia, Jávea, Moraira, Altea): greener, hilly, higher prices, in high demand amongst Germans. South (Torrevieja, Orihuela Costa): flatter, lower entry prices, a mixed international population — and easier for banks to value. An overview of the regions.
- Around 30 % equity plus purchase costs: Around 30 % equity on the purchase price plus around 10 to 13 % purchase costs. Banks will finance up to 70 % of the lower of the purchase price and the tasación. Costs when buying in Spain.
- ITP 9 %, 11 % for amounts of €1 million or more: Comunitat Valenciana: Purchase of second-hand property – ITP 9 %, 11 % for amounts of €1 million or more (Ley 5/2025, effective from 1 June 2026). New-build properties: 10 % IVA plus AJD (1.4 % in the region). Finance a new-build property in instalments.
- Buying a house on the Costa Blanca: How much is the property transfer tax? Anyone buying a house on the Costa Blanca pays the ITP levied by the Valencian Community — usually 9 %, or 11 % on amounts over €1 million.
Since 1 June 2026 (Ley 5/2025), the standard rate has been 9 % of the higher of the purchase price and the cadastral reference value — it was previously 10 %.
For properties worth over €1 million, the rate rises to 11 %; this primarily affects the premium locations of Jávea, Moraira and Altea, where many villas exceed the €1 million mark. For the typical second home priced below €1 million — in Dénia, Calpe, Torrevieja and Orihuela Costa — the rate remains at 9 %.
The ITP is the largest single cost item; you should expect purchase costs to total around 10 to 13 %. Important for financing: The bank will lend against the lower of the purchase price and the tasación, and will finance the purchase price, not the purchase costs — you must cover the ITP from your own funds. Alicante Airport serves the entire coastline. As at 07/2026.
Of the 30+ institutions on the market, one finances the developer instalments during construction and two provide mortgages against unencumbered existing property (Perini Market Check, as at 8 October 2026).
Costa Blanca: how do north and south compare?
The north is a green, hilly coast with a price per square metre of €2,500–4,500. The south is flatter and drier with a lower entry price and €1,500–2,800 per square metre.
- Dénia, Jávea, Moraira, Calpe, Altea (Costa Blanca North): 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.
- Torrevieja, Orihuela Costa, Guardamar (Costa Blanca South): 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.
- 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.
- 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.
- ITP 9% Comunitat Valenciana: 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.
- 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.
What do two example cases from the Costa Blanca show?
Concrete sample calculations for typical foreign buyers — as a guide for your own plan. North and south differ markedly.
Calculate your costs quickly: Pre-filled with typical values for this region — adjust the figures and the result updates at once; the region and its tax rate are already set.
What is in the full evaluation by email?
Everything the calculator does not show on the page: equity needed including purchase costs, every cost item, total interest and total cost — and, with your income, how much you can afford under the 35 % rule.
We approach at least 2 of the 15–20 banks we work with for your case (31 in Spain, 14 in Portugal); which ones fit, we discuss in person.
Case studies from the Costa Blanca: how have buyers financed their property?
Anonymised examples of how German-speaking buyers have financed their property on the Costa Blanca.
Costa Blanca: the amount that must be paid in cash: The Costa Blanca forms part of the Comunitat Valenciana, where the ITP is levied on a sliding scale in accordance with Ley 5/2025. For buyers, this means two things: the rate depends on the purchase price, and the amount cannot be financed.
On the Costa Blanca, there is an additional regional characteristic — the high proportion of new-build properties from developers. With new-build properties, the mortgage only comes into effect upon completion and registration; the developer’s instalments are therefore funded from your own funds beforehand. Tax, purchase costs and construction instalments thus coincide in time.
If you look only at the loan-to-value ratio, you won’t see this overlap — it is the real bottleneck on this coast.
Valencia & Costa Azahar: Neighbouring region to the north, same ITP rate of 9 %.
Rental licence in Spain: Regional licence, national registration number — and what the owners’ association is permitted to do.
Financing calculator: Monthly instalments, loan amounts and purchase costs by region available immediately; total cost and equity requirement sent by email.
Mortgage without residency: Documents and procedure for non-residents.
ITP Comparison: Spain: Purchase costs by region.
Procedure and sequence: Why the condición suspensiva is the lever.
How can you use a property on the Costa Blanca as a source of capital?
The Costa Blanca belongs to the Comunitat Valenciana. What counts is where the property lies, not where the owner lives. A paid-off property on the Costa Blanca does not have to be sold to free up capital — it can be mortgaged instead.
Inheritance tax, Comunitat Valenciana: 99% relief, since 28.05.2023 (retroactively) — groups I and II, meaning parents, children and spouses (art. 12 bis Ley 13/1997, as amended by Ley 6/2023 of 22.11.2023).
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. Scope: inheritance tax, groups I and II (parents, children, spouses). Regional tax law changes regularly.
What was actually paid in this area. Portal prices are what sellers ask. What was recorded at the notary is published by the Spanish notaries themselves: the Portal Estadístico del Notariado — free, no registration, and searchable down to postcode level.
In the first quarter of 2026 the prices paid ran 29 per cent below asking prices, the widest gap since 2007. For a mortgage that is the figure that counts: the bank's valuer works from completed sales, not from listings. → Portal Estadístico del Notariado · What that means for your financing · Where the numbers come from
Case reports Costa Blanca: Anonymised examples of how buyers financed their property on the Costa Blanca.
Valencia & Costa Azahar — mortgage for non-residents: Financing in the region.
Canary Islands — mortgage for non-residents: Financing in the region.
Portugal — mortgage for non-residents: Algarve, Madeira, Lisbon and Porto at a glance.
Townhouse with pool · €180,000
| Item | Amount |
|---|---|
| Equity | €54,000 (30%) |
| Mortgage | €126,000 (70%) |
| Purchase costs (~10%) | ~€18,000 |
| Loan-to-value | 70% LTV |
| Example payment (20 yrs, 2.4%) | ~€660/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.
Frequently asked questions
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, roughly 30% equity on the purchase price plus around 10–13% costs. Spanish banks finance up to 70% of the lower of purchase price and Tasación value. With a strong credit profile, exceptions are possible.
Buying a house in Benidorm: What sort of properties will the bank finance?
In Benidorm, there are mainly apartments in high-rise blocks rather than detached houses. The same tax and financing framework applies as in the rest of Alicante, i.e. up to 70 % of the lower of the purchase price and the tasación. For investment properties intended for holiday letting, Benidorm is often regarded as the most liquid option in the region.
How high is the transfer tax (ITP)?
The Costa Blanca belongs to the Comunitat Valenciana. On a resale property ITP is 9% — 11% above €1m of taxable value (Ley 5/2025, in force since 1 June 2026). On a new build you pay 10% IVA plus AJD stamp duty (1.4% in this region). Notary, land registry, lawyer and the NIE are additional.
Which banks finance in Alicante province?
We approach at least 2 of 15–20 institutions per case; several major Spanish banks run non-resident programmes in the province. Which bank offers the best terms in your case, we 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.
Request a mortgage
Planning a purchase on the Costa Blanca? A free initial consultation in English — also German, French, Spanish, Russian. We review your situation and find the right bank in Spain.
This is not tax advice.
Related pages
Region
Dénia — Mortgages for non-residents
The largest municipality in the north, with its own page covering the full framework.
Region
Moraira — Mortgages for non-residents
The smallest and most exclusive town in the north, with its own page.
Region
Torrevieja — Mortgages for non-residents
The largest market in the south, with its own page covering the full framework.
Calculator
Buying a house on the Costa del Sol: What will the bank finance, and what won’t it?
Banks on the Costa del Sol usually provide non-residents with financing of up to 70 % of the lower of the purchase price or their own valuation.
Content by Siegfried Perini — local brand representative since 2019, active in real estate since 1992, entered in the German intermediary register (§ 11a GewO) as a person directly involved in brokerage and advice. Point of contact for German-speaking buyers in Spain and Portugal. Brokerage by Olga Nikushkina, mortgage credit intermediary under § 34i German Trade Regulation (GewO); in Portugal through a locally licensed intermediary.