The Ultimate Costa Blanca Property Buying Guide

8 May 2023

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If you're looking to buy property in Spain, the Costa Blanca is a region that should definitely be on your radar. Known for its beautiful beaches, warm climate, and welcoming locals, it's no surprise that the Costa Blanca is a favourite among property buyers from all over the world. Whether you're looking for a holiday home, a retirement property, or an investment opportunity, the Costa Blanca has something to offer. In this guide, we'll take a closer look at what you need to know before you buy.

Location

The Costa Blanca is a 200-kilometre stretch of coastline located in the province of Alicante, on Spain's eastern coast. It's a popular destination for holidaymakers and expats, thanks to its sunny weather, beautiful beaches, and relaxed lifestyle. The region is home to a number of popular resorts, including Benidorm, Javea, and Torrevieja, as well as quieter towns and villages where you can enjoy a more traditional Spanish way of life.

Culture and Lifestyle

The Costa Blanca is steeped in history and culture, with a rich heritage that dates back centuries. From the Moorish influence in the architecture of some of the region's buildings to the traditional festivals and celebrations that take place throughout the year, there is always something to discover and enjoy.

One of the most famous celebrations in the Costa Blanca is the Las Fallas festival, which takes place in Valencia every March. During the festival, enormous sculptures made of paper and wood are paraded through the streets before being set on fire in a spectacular display of fireworks and flames.

The region is also home to a number of historic towns and villages, including the picturesque town of Guadalest, which is perched on a hilltop overlooking a stunning valley. Here you can explore ancient castles and museums, or simply soak up the atmosphere in one of the many traditional cafes and restaurants.

Of course, the Costa Blanca is also known for its relaxed lifestyle and sunny climate. With an average of 320 days of sunshine per year, it's the perfect place to enjoy outdoor activities like golf, cycling, and hiking. The region's beaches are also a major draw, with soft sand and crystal-clear waters that are ideal for swimming, sunbathing, and water sports.

Property Market

The Costa Blanca property market has remained buoyant over the years, with demand from both local and international buyers. According to Property Guides, the region is currently one of the most popular areas in Spain for property buyers, with prices remaining relatively stable despite the economic uncertainty caused by the COVID-19 pandemic. In 2023, the average price of a property in the Costa Blanca is around €220,000, although you can find cheaper options if you're willing to look further inland or in less popular areas.

Types of Property

When it comes to property in the Costa Blanca, you have plenty of options to choose from. From modern apartments to traditional fincas, there's something for everyone. Some of the most popular types of property in the region include:

Apartments: Perfect for holiday homes or investment properties, apartments in the Costa Blanca are available in a range of sizes and styles. Many come with communal facilities like swimming pools and gardens, and offer easy access to the beach and local amenities.

Villas: If you're looking for a bit more space and privacy, a villa might be the right choice for you. These standalone properties come with their own gardens and often have private pools. They're perfect for families or those who plan to spend extended periods of time in the Costa Blanca.

Townhouses: Townhouses are a popular choice for those who want a bit more space than an apartment but don't need a full-size villa. These properties are often built over two or more floors and come with communal facilities like swimming pools and gardens.

Buying Process

If you're ready to buy property in the Costa Blanca, there are a few things you'll need to know about the buying process. The first step is to find a reputable estate agent who can help you navigate the local property market. They'll be able to show you properties that meet your requirements and negotiate with sellers on your behalf.

Once you've found a property you like, you'll need to make an offer. This is usually done through your estate agent, who will help you negotiate a price with the seller. If your offer is accepted, you'll need to pay a deposit (usually around 10% of the purchase price) and sign a reservation agreement to secure the property.

Next, you'll need to appoint a lawyer to carry out the legal work on your behalf. Your lawyer will check that the property has all the necessary permissions and paperwork in order, and will ensure that the contract is fair and legal.

Finally, you'll need to sign the deed of sale in front of a notary. This is a legal requirement in Spain and is designed to protect both the buyer and the seller. Once the sale is completed, you'll need to pay the balance of the purchase price, as well as any associated taxes and fees. Your lawyer will be able to advise you on the exact costs involved.

Financing

If you need to finance your purchase, there are a few options available to you. Spanish banks offer mortgages to foreign buyers, although the terms and conditions can be quite strict. You'll typically need to provide a deposit of around 30% of the purchase price, and your income and credit history will be assessed to determine whether you're eligible for a mortgage.

Another option is to take out a mortgage in your home country. This can be a good choice if you have a good credit rating and can get a better interest rate than in Spain. However, be aware that you may need to provide a larger deposit, and the process can be more complex. There are also mortgage lenders in Spain that can compare all the Spanish banks and find you the best deal.

Taxes and Fees

When buying property in the Costa Blanca, there are a number of taxes and fees you'll need to factor into your budget. These include:

Property Transfer Tax (ITP): This tax is payable by the buyer when purchasing a resale property. The amount payable varies depending on the purchase price of the property, but typically ranges from 6% to 10% of the purchase price.Value Added Tax (VAT): This tax is payable by the buyer when purchasing a new-build property. The current rate of VAT in Spain is 10%.

Notary Fees: These fees are payable for the services of the notary who oversees the sale. The amount payable varies depending on the purchase price of the property, but typically ranges from €600 to €1,000.

Lawyer's Fees: Your lawyer will charge a fee for their services, which will depend on the complexity of the transaction. Expect to pay around 1% of the purchase price.

Property Registration Fees: These fees are payable for registering the property in your name. The amount payable varies depending on the purchase price of the property, but typically ranges from €400 to €1,000.

Top Locations

If you're considering buying property in the Costa Blanca, there are a number of locations that are worth considering. Here are just a few of the top spots.

Javea: Located in the northern part of the Costa Blanca, Javea is a popular destination for both holidaymakers and expats. With its beautiful beaches, bustling port, and traditional old town, there's plenty to see and do here. Property in Javea ranges from modern apartments to traditional villas, with something to suit every budget.

Moraira: Just a short drive south of Javea, the town of Moraira is another popular destination. This charming coastal town is known for its picturesque marina, sandy beaches, and excellent restaurants. Property in Moraira tends to be on the higher end of the price range, with luxurious villas and spacious apartments commanding a premium.

Benidorm: Although it's known for its lively nightlife and high-rise hotels, Benidorm is also a popular spot for property buyers. The town has a great range of amenities, including excellent shopping, dining, and entertainment options. You can find a range of property types in Benidorm, from studio apartments to large villas.

Altea: If you're looking for a quieter spot, Altea is worth considering. This charming town has a bohemian feel, with narrow cobbled streets, whitewashed houses, and a stunning hilltop church. Altea is also home to a number of excellent restaurants and art galleries. Property in Altea tends to be on the higher end of the price range, with many luxurious villas and seafront apartments available.

Denia: Located in the north of the Costa Blanca, Denia is a thriving coastal town that's popular with both Spanish and international buyers. With its beautiful beaches, bustling marina, and ancient castle, there's plenty to explore here. Property in Denia ranges from modern apartments to traditional townhouses and villas.

Tips for Buyers

If you're planning to buy property in the Costa Blanca, here are some tips to help you get started:

Work with a reputable estate agent who knows the local market well. They'll be able to help you find properties that meet your requirements and negotiate with sellers on your behalf.

Consider hiring a lawyer who is fluent in Spanish and familiar with the local property laws. They can help you navigate the legal requirements and ensure that your transaction goes smoothly. Be prepared to pay additional taxes and fees, which can add up to several thousand euros. Make sure you factor these costs into your budget.

Visit the properties you're interested in before making an offer. This will give you a chance to see the property in person and get a feel for the local area.Consider the rental potential of your property, particularly if you plan to rent it out when you're not using it.

The Costa Blanca is a popular tourist destination, so there is often high demand for holiday rentals. Be aware that the property market in the Costa Blanca can be competitive, particularly in popular areas. Be prepared to act quickly if you find a property you like.

Get to know the local community and culture. The Costa Blanca is a friendly and welcoming place, and getting involved in local events and activities can be a great way to meet new people and make the most of your new home.

In Conclusion

The Costa Blanca is a beautiful and welcoming region that offers a fantastic lifestyle and a great investment opportunity. With its sunny weather, beautiful beaches, and rich cultural heritage, it's no wonder that the region is so popular with property buyers from around the world.

If you're considering buying property in the Costa Blanca, take the time to do your research and work with reputable professionals to ensure that your transaction goes smoothly. With the right approach, you can find your dream property in this wonderful part of Spain and start enjoying all that the Costa Blanca has to offer.