2026 tax guide for foreigners buying property on the Costa Blanca

February 10, 2026

If you are thinking of buying a home in Dénia, Jávea, Moraira or Benissa, understanding taxes and costs is key to planning your investment well. This guide summarizes the taxes on purchase, the annual obligations and the most relevant deadlines for non-residents.

Quick summary

New build: VAT (10% for housing / 21% for separate garage) + AJD (Stamp Duty; approx. 1–1.5% depending on the Valencian Community).
Second-hand: ITP (Transfer Tax; approx. 8–10%, depending on regional brackets).
Costs: notary, registry, management fees, and if there is a mortgage, valuation and opening fee.
Annual: IBI (property tax), rubbish tax, Non-Resident Income Tax (IRNR), home insurance, community fees.
Renting means declaring income (forms and deductions applicable).

Taxes on purchase

The main tax depends on whether you buy new build or second-hand:

New build: VAT + AJD. For housing VAT is usually 10%; AJD ranges from about 1% to 1.5% (varies according to current regional regulations).
Second-hand: ITP with progressive rates approximated; standard estimate is 8–10% of the purchase price.

Other associated costs

Notary: regulated fees, vary according to price and number of copies.
Land Registry: official fees.
Management agent: if involved (very common with mortgages).
Mortgage (if applicable): valuation, opening fee, sworn translations, etc.

Annual taxes and expenses

IBI (Property Tax) and rubbish tax: municipal.
IRNR (Non-Resident Income Tax): imputations of income if you do not rent; if you rent, you are taxed on rental income.
Wealth Tax: according to exempt minimums and regional regulations.
Home insurance and community fees if it is a building with shared ownership.

Renting and taxation

If you rent medium/long-term, you declare rental income and can deduct related expenses. For tourist rentals, the rules and taxation differ and specialized advice is recommended.

Double taxation treaties (foreigners)

Spain has treaties with other countries to avoid double taxation. Normally the property is taxed in the country where the property is located and taxes are coordinated with your country of residence.

Key documents and preliminary steps

Obtain an NIE.
Open a bank account in Spain.
Check registered encumbrances and urban planning status.
Set aside funds for taxes and expenses.
Arrange sworn translations if necessary.

Indicative 2026 tax calendar

Obligation	When	Notes
IRNR (imputation or rental)	Annual/Quarterly	Depends on whether there is rental activity; forms and deadlines vary by case.
IBI	According to the Town Hall	Usually charged in the second half of the year.
Rubbish	According to the Town Hall	Municipal frequency and amount.
Wealth Tax (if applicable)	Annual	According to exempt minimums and regional regulations.

Quick checklist

NIE and bank account ready.
Calculation of taxes (ITP/VAT + AJD) and costs.
Registry and technical review of the property.
Home insurance and provision for community fees.
Annual obligations plan (IBI, IRNR, etc.).

Legal notice

This content is informative and may change with legislation. We recommend confirming current rates and deadlines with your advisor and the corresponding Town Hall. Bullmann Properties can put you in contact with local experts.