PURCHASE GUIDE

Set a realistic budget and be aware that advertised prices are net. As a standard rule, you should anticipate an additional 12% to cover purchase taxes, notary, land registry and professional fees.

• Obtaining NIE (Foreigner’s Identification Number). Required to complete the purchase and register ownership.
• Opening a Spanish Bank Account. Not mandatory, but highly recommended. It simplifies the purchase process and ongoing payments such as taxes, utilities and community fees. You will need to provide the bank with several documents in compliance with European anti-money laundering regulations.
• Mortgage Preparation. If financing is required, early planning is essential to secure optimal conditions and avoid delays.

The Altea market includes many intermediaries whose role is limited to showing properties. At ALTEAINVEST, we operate differently. What truly matters is service quality, availability, market knowledge, negotiation skills, reputation and proven experience.

A competent agent should also have solid legal, urban planning and tax knowledge, particularly for complex or high-value transactions, so that he can advise you on issues of vital importance when investing your money. Complex transactions require advisors capable of identifying risks before they arise and structuring solutions efficiently.

Choose one trusted main agent who coordinates the entire process and let him coordinate the entire process for you, acting as your single point of coordination, working with trusted professionals and other agents when necessary, always protecting your interests.

Explain clearly to the agent the characteristics that the house you are interested in buying must have and what your budget is. A well-defined brief allows your agent to curate viewings efficiently and discreetly. Once your criteria are established, your agent will curate a bespoke itinerary of properties that align with your visión and will organise viewings, coordinate with owners and accompany you throughout the process.

After viewings, it is often useful to revisit areas independently to experience their atmosphere. Always schedule second viewings for shortlisted properties, ideally at different times of the day to evaluate light patterns, atmosphere and and neighborhood dynamics.

Ask your agent to explain price variations, which are influenced by key factors such as:

• Location and micro-location
• Views
• Plot size and privacy
• Architecture and design
• Quality of construction and installations
• Orientation and natural light

ALTEAINVEST deep local insight will help you distinguish between similar properties to identify the best long-term choices.

Ready Properties. These properties offer the advantage of immediate use, clear visibility of finished details ("what you see is what you get") plus legal certainty.

Off-Plan Properties. While offering the pinnacle of modern design and customisation, completion may take months or even several years. Extra caution is required when selecting developers to avoid issues with deadlines or finishing quality.

Renovation. An alternative often preferred by experienced buyers is purchasing a well-located villa and renovating it to modern standards, which often yields the highest capital appreciation and is usually faster and safer than buying off-plan .

At ALTEAINVEST we assess not only current value but also risks, future cost implications and overall investment quality.

A serious offer should clearly specify:

• Purchase price and allocation of taxes and costs
• Included items (furniture, fixtures, extras)
• Payment schedule
• Target completion date

Sellers do not always accept the highest offer. They prefer buyers who appear well-prepared, financially secure and realistic. Your preparation at earlier stages becomes a key advantage here.

Deposit contract. Upon acceptance of an offer, a Deposit Contract (Arras) is signed, tipically involving a 10% payment of the purchase price. For security and neutrality, we recommend these funds be held  in a notary, lawyer or a reputable registered API escrow account rather than paid directly to the seller.

The contract must clearly define all agreed terms, deadlines, documentation, costs, and handover conditions.

The contract must clearly state:

• Price and payment deadlines
• Notary signing date
• Documentation the seller must provide (bills and receipts for IBI, water, electricity and gas supplies, energy certificate, etc.)
• Tax responsibilities
• Furnishing/contents agreements
• Any other agreed terms

Legally, both parties retain a right of withdrawal, subject to financial penalties. In practice, withdrawals are rare and usually occur only in exceptional circumstances.

Before signing the deposit agreement, it is important that an experienced, trusted agent and/or lawyer carries out a series of checks, such as:

• Land Registry review. Confirming ownership and ensuring the property is free of liens or undisclosed encumbrances, mortgages, debts, etc
• Urban planning due diligence.Verifying certificates of occupancy and ensuring no outstanding urban planning infringements exist.
• Technical inspection: recommended for older or poorly maintained properties.

The transaction culminates at the Notary’s office, where the Public Deed of Sale is executed. At the notary, the buyer, seller, and notary sign the purchase deed. Agents and/or lawyers are usually present. Ownership and money change hands at the same moment. If there is a mortgage, the bank signs a separate mortgage deed at the same time.

The gold standard for payment in these transactions is a Spanish Banker’s Draft or OMF Transfer (a real-time, irrevocable bank-to-bank movement of funds) ensuring speed and security.

Resale Properties. the amount of this tax varies from one Autonomous Community to another. Normally it ranges between 6% and 10% of the sale price of the property. In Altea and other municipalities in the Valencian Community, a tax rate of 10% is applied on the purchase price or 11% for properties above €1 million. If the agreed price is lower than the so-called “reference value”, tax may be calculated on the higher figure.

New Build Properties. The buyer will have to pay Value Added Tax (VAT), generally 10% of the price of the property. In addition, sometimes the buyer will also have to pay Stamp Duty (AJD), the amount of which varies from one Autonomous Community to another. It usually varies between 0.5% and 2%.

Additional Costs

• Legal fees: approx. 1%
• Bank transfer / draft costs
• Notary and Land Registry: usually below 0.5%.

Following notary completion, your agent or lawyer will submit the deed to the Tax Officce within 30 days and finally to the Land Registry. This procedure is typically finalized within one month, ensuring your title is fully protected and publicly recorded.

Your agent should make sure water, electricity, gas, internet, and community fees are transferred to your name and set up with direct debit from your bank account. Your agent should advise you and/or help you take out home insurance.

At ALTEAINVEST, we ensure that this phase is handled efficiently and seamlessly.

Once you own the property, there are ongoing taxes and costs:

• Non-Resident Income Tax (IRNR). A tax levied on foreign owners for the personal use or potential rental income of their property.
• IBI: A local municipal tax payable annually by all real estate owners, regardless of residency status.
• Garbage tax: A modest annual fee for municipal waste collection services.
• Wealth Tax: Applicable to high-net-worth individuals based on the net value of their Spanish assets.
• Corporate Obligations: Special regulations and higher tax transparency requirements apply to non-resident entities domiciled in jurisdictions considered tax havens.

Disclaimer: Tax regulations are dynamic and subject to legislative amendments. The information provided herein is for indicative purposes only. Due to the complexity of the Spanish fiscal system, we strongly advise relying on professionals with verified technical training and specific real estate expertise rather than entrusting your affairs to a simple "house salesman."

For more information about taxes you can read our post Foreign home owners and Spanish taxes or you can also visit the Spanish Tax Agency (Agencia Tributaria)

ALTEAINVEST is not a typical estate agency — we are a boutique real estate and legal advisory firm with 45+ years in the Altea market, having sold over 2,000 villas, apartments and luxury homes.

At ALTEAINVEST, we do far more than selling properties. We provide strategic advice, legal coordination and full support, ensuring that every purchase is secure, transparent and tailored to your objectives.

Our strength lies in:

• Deep local expertise. Access to Altea’s most prestigious properties, including exclusive off-market opportunities not available to the general public
• Integrated legal and real estate services. A team of specialists in real estate law, urban planning, and taxation who protect your interests at every turn.
• Bespoke guidance from search to completion
• Unparalleled client support

We invite you to explore our carefully curated portfolio, read our in-depth guides and reach out for a confidential consultation. Allow us to be the architects of your next significant investment in Altea and we will tailor a personalised strategy and guide you step-by-step through a purchase that aligns with your lifestyle and investment objectives.

ALTEAINVEST — Your trusted partner in Altea and Costa Blanca luxury real estate.