The Costa Blanca is one of the most popular regions in Spain for buying a holiday property. With its sunshine, sea, Mediterranean lifestyle, and well-developed infrastructure, it attracts both tourists and property buyers from around the world. But before you invest, proper preparation is essential. In this article, you’ll learn what to look out for to avoid risks and make a sound decision.

1. Location, location, location – with clear priorities

The Costa Blanca stretches over 200 km from Dénia in the north to Pilar de la Horadada in the south. Each area differs in infrastructure, price level, and lifestyle. Do you plan to use the property yourself or rent it out? Do you prefer peace or proximity to beaches, shops, and restaurants?

2. Legal checks and ownership status

Before purchasing, consult the Land Registry to verify ownership and confirm that the property is free of debts, mortgages, or other encumbrances. Also check the Cadastral Reference (Referencia Catastral) for official size and use. Legal support from a property lawyer is highly recommended.

3. Building legality

Especially for older or rural properties, ensure that all extensions or modifications are legal and registered. Otherwise, you may face fines or demolition orders. Verify everything with the local town hall (Ayuntamiento).

4. Taxes and additional costs

Beyond the purchase price, be aware of:

• Property transfer tax (8–10% depending on the region)

• Notary and land registry fees

• Legal fees

• Potential agent commissions

Post-purchase costs include annual property tax (IBI), rubbish collection, non-resident income tax (if renting), and more.

5. Usage: private, rental, or mixed?

If you plan to rent your property to tourists, you will need an official rental license (Licencia de alquiler turístico) in the Valencian region. Not all properties qualify. Check this beforehand.

6. Financing and currency risks

Spanish banks offer mortgages to non-residents – usually up to 70% of the purchase price. However, compare financing options in your home country too, especially if exchanging foreign currency.

7. Ongoing management

Holiday homes require regular care. Many owners rely on local property management companies for cleaning, key holding, gardening, or pool care. Know your options before you buy.

8. NIE number – mandatory

Foreign buyers must obtain a Spanish NIE number for tax purposes before the notary appointment. This can be done in Spain or at a Spanish consulate abroad.

Conclusion

Buying a holiday home on the Costa Blanca can be a rewarding investment – if you plan well, get expert help, and manage expectations. With the right preparation, you’ll enjoy peace of mind and a solid property in one of Europe’s most beautiful regions.

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