Buying Property in Spain – Complete Guide
Taxes, buying process, rental rules, financing and common pitfalls. Everything you need to know to buy safely on Costa del Sol and Costa Blanca.
Quick insights 2026
Transfer Tax (ITP)
7% Andalucía · 10% Valencia
Valencia reduced to 9% from 1 June 2026
Short-term rentals
VUD-ID required from 1 July 2025
Without an ID the listing is automatically blocked
Price increase Costa Blanca
+3–5% annually
Stable value growth since 2019
Why Spain?
Europe's most popular country for property investment
320+
Sunshine days
Mediterranean climate year-round
3.5h
Flight time
Direct flights from Sweden
50%
Lower prices
Compared to southern Sweden
4–6%
Rental yield
Costa Blanca gross yield
Lifestyle
Experience your future daily life
Buying property in Spain is about more than an address. It is about the feeling: morning coffee on the terrace, walks along the sea and a daily life where the sun is almost always present.
320+
Sunshine days
3.5h
Flight time
50%
Lower cost
Comparison
Costa del Sol vs Costa Blanca
A strategic comparison for investors and property buyers in 2026.
| Parameter | Costa del Sol (Andalucía) | Costa Blanca (Valencia) | Strategic analysis |
|---|---|---|---|
| Price level | Premium (Marbella: approx. €5,569/m²) | Affordable (Torrevieja: €2,600–3,400/m²) | Twice as much capital required on Costa del Sol. |
| Value increase | High potential (but volatile) | Stable (3–5% annually) | Costa del Sol = Capital growth. Costa Blanca = Security. |
| Rental yield | 3.5–5.0% | 4.5–6.5% | Costa Blanca is strongest for cash flow. |
| Buyer profile | Global elite, investment funds | European middle class, families | Diversified risk on Costa Blanca. |
Our advice: Choose Costa del Sol for prestige and long-term capital growth. Choose Costa Blanca for lower running costs and higher rental yield.
Taxes
Taxes on purchase – here is what it costs
Taxes vary depending on the region and whether the property is a new build or resale.
Transfer Tax (ITP)
Andalucía
7 %Flat rate. Whether you buy for €100,000 or €10 million.
Valencia
10 %Standard rate. (11% for values over €1 million). Reduced to 9% on 1 June 2026 (not for luxury properties).
VAT (IVA) + AJD
Applies throughout Spain for new builds.
Plus: Stamp Duty (AJD)
Tools
Calculate your total cost
See what you pay on top of the purchase price – taxes, fees and running costs.
Calculator
Total investment & monthly cost
Rental rules 2025
Rules have tightened – here is what applies
Short-term rentals require more planning. Here is a quick overview by region.
The new ID requirement
From 1 July 2025 all listings on Airbnb/Booking must have a unique VUD‑ID.
Without an ID the listing is automatically blocked.
Costa del Sol
- Moratorium in Málaga: No new tourist licences in the city until 2027.
- Separate entrance: Many municipalities require a separate entry.
- Community veto: The homeowners association must approve.
Costa Blanca
Tourist (<10 days)
Requires licence, VUD‑ID & community approval. Licence valid for 5 years.
Seasonal (>11 days)
No tourist licence required. Falls under standard rental law (LAU).
Step by step
The buying process in five steps
Preparation & NIE
You must have a Spanish tax ID. Via the embassy it takes 3–5 months. We help you get it done on-site (3–4 weeks).
Book & Reserve
Reservation fee (approx. €6,000) to take the property off the market. Never pay directly to the seller!
Due Diligence (Survey)
We check the LPO (Licencia de Primera Ocupación), debts and illegal constructions. This is where we save you from problems.
Arras (Deposit)
Contract is signed and 10% is paid. If the seller backs out, they must pay back double.
Notary & Completion
Remaining amount is paid. You get the keys and become the formal owner!
Be careful
Common mistakes to avoid
Buying without a Licencia de Primera Ocupación (LPO).
Not checking debts and mortgages on the property.
Paying directly to the seller without legal review.
Not budgeting for all costs (ITP, notary, registration).
Buying without a survey.
Not understanding community rules and fees.
Everything you need
Buying checklist
Frequently asked questions
Can I rent out my apartment on Airbnb?▼
Yes, but you need the new VUD-ID. In Andalucía it is difficult in saturated areas (e.g. Málaga city centre). In the Valencia region a licence is required for short-term rentals, but not for seasonal rentals (over 11 days).
Do I have to pay wealth tax?▼
Andalucía has a 100% allowance (zero tax) up to €3 million. Valencia has an exemption of €700,000 for non-residents, with progressive tax thereafter.
What is "Cuerpo Cierto"?▼
It means you are buying the property "as seen". If it later turns out to be 95 m² instead of 100 m², you generally cannot claim a price reduction as you bought the physical object you saw.
How much does it total to buy a property in Spain?▼
Budget for 10–13% on top of the purchase price. This includes transfer tax (ITP) 8–10%, notary, registration and legal fees.
What is the difference between ITP and IVA?▼
ITP (8–10%) applies to existing properties. IVA (VAT 10%) applies to new builds. Choose the correct tax based on property type.
Do you need a lawyer when buying?▼
It is strongly recommended. An independent lawyer checks the LPO, debts, planning permission and contract before you sign.
Can you buy a property without an NIE number?▼
No, an NIE number is mandatory for all purchases and must be in place before signing at the notary.
How long does it take to get an NIE number?▼
In Sweden it usually takes 2–4 weeks via the consulate. In Spain it can be done in 1–2 days if you book the right appointment.
What happens if the seller backs out after the deposit?▼
If the seller backs out, they must repay double the deposit under the arras contract.
Must you be present at the purchase?▼
No, you can use a power of attorney (poder) and let a lawyer or representative sign on your behalf.
Ready to take the next step?
We guide you through the entire process
From search to key handover and tax filing – we are with you every step of the way.
- We speak your language
- Independent legal review
- Access to the entire market