Your Dream Home on the Costa Blanca: From Search to Key Handover
Buying a home in the Moraira, Benissa, or Javea region is a wonderful adventure, but the process differs significantly from Northern Europe. While you may be used to fixed frameworks, the Spanish market requires local expertise and a keen eye.
1. The Search: Navigating the Spanish Market
Forget the accuracy of portals like Funda or Immoweb. While sites like Idealista or Kyero are useful for a first price indication, they contain many pitfalls:
- Duplicate listings: Properties are often listed by multiple agents with different prices and photos.
- Outdated data: Sold properties often remain online as ‘bait’.
- Location mysteries: Exact addresses are rarely disclosed; often only the neighborhood or partida is mentioned.
Our tip: Hire a buying agent. This usually costs you nothing (the commission is shared with the seller), and you gain access to a smooth process and a wide network in the region. [View our current listings in Moraira and Javea here].
2. Negotiations and the Role of the Lawyer
Once the right property is found, negotiations begin through the agents. At this stage, a lawyer (abogado) is essential. In Spain, the notary plays a passive role, primarily verifying identities and the title deed. Your lawyer performs the crucial due diligence regarding:
- Outstanding debts or illegal renovations.
- Correct registration in the Property Register.
- Applying for your NIE number and opening a Spanish bank account.
3. From Reservation to Completion
- Reservation Contract: With a deposit of €5,000 to €6,000, the property is taken off the market, giving your lawyer 2 to 3 weeks for legal checks.
- Purchase Contract (Arras): After legal approval, you sign the official contract and pay a 10% deposit.
- Financing: Note! A “subject to financing” clause or a structural survey is not standard in Spain. We advise having these matters settled or scheduled before signing the Arras.
4. What Does a House in Spain Really Cost?
On top of the purchase price, you should budget for approximately 12% to 13% in additional costs:
- Transfer Tax (ITP): 10% (or 11% for properties over €1 million).
- New Build: 10% VAT (IVA) plus 1.5% Stamp Duty (AJD).
- Buyer’s Costs: 2% to 3% for notary fees, legal fees, and registration.
- Please note: Specific costs also apply if you decide to sell the property in the future.
5. Management and Annual Running Costs
Once you are the owner, you are responsible for local taxes. These include the IBI (municipal tax), Basura (rubbish collection), and non-resident income tax. Additionally, consider utility costs, insurance, and garden/pool maintenance.
Peace of mind: We are happy to help you find reliable maintenance partners and ensure your lawyer handles the seamless transfer of all utility contracts (water, electricity, gas).
6. ROI: Rentals as an Investment
The Costa Blanca North is a top-tier destination. Holiday rentals can transform your purchase into a profitable investment. For rentals, you will need a Tourist License and must fulfill tax obligations. You can choose full-service management (completely hands-off) or simply outsource the key handover.