Buying a Villa on the Costa Blanca: Complete 2026 Cost Breakdown — Purchase Taxes, Fees and Annual Running Costs

The full cost base behind buying and owning a Costa Blanca villa

Prices in Jávea and Moraira have crossed €4,000 per square metre in 2026, yet the Costa Blanca North continues to attract record numbers of foreign buyers — and with good reason. Understanding the complete cost base is the most reliable way to budget a purchase realistically and to confirm that the value proposition remains as strong as it looks on paper. This guide covers both the one-time transaction costs and the year-on-year running expenses that come with villa ownership in the Alicante province.

What you pay to buy: 2026 transaction costs

For resale villas — by far the most common purchase on the Costa Blanca North — the headline tax is ITP (Impuesto de Transmisiones Patrimoniales), the regional property transfer tax. As of 1 June 2026, the Valencian Community reduced ITP from 10% to 9%. Stamp duty (AJD) fell at the same time, from 1.5% to 1.4%. On a €600,000 villa, that 1% ITP reduction alone saves €6,000 at signing.

For new-build properties, the applicable tax is IVA at 10% plus AJD at 1.4%, for a combined 11.4%.

Professional fees add a further 2–3%:

• Legal fees (abogado): typically 1% of the purchase price (subject to 21% IVA on the fee itself)
• Notary and land-registry fees: €1,500–€2,500
• Gestoría (administrative agent): €300–€600

For resale purchases completing after June 2026, the total oncost budget is 11–12% above the agreed price.

Purchase cost examples (resale, post-June 2026)

Illustrative estimates. Notary fees are regulated and vary by deed complexity. Verify totals with your appointed lawyer before signing.

The annual cost base: what running the property actually costs

The purchase is a one-time event; the annual cost base determines affordability over the long term. For a typical €500,000–€700,000 detached villa in a Jávea or Moraira urbanisation, annual costs break down as follows.

IBI — the local property tax

IBI (Impuesto sobre Bienes Inmuebles) is Spain's annual municipal property tax, calculated on the cadastral value of the property — typically 30–50% of current market value — multiplied by the local rate. In the Alicante province it is collected by SUMA, generally between August and November each year.

• Smaller or older villa with a modest cadastral value: €400–€800/year
• Modern, larger villa with an updated cadastral value: €900–€1,600/year

SUMA sends the bill to the registered postal address, or it can be managed by direct debit.

Community fees

Most Costa Blanca North villas sit within urbanisations with shared roads, lighting or communal green spaces. Fees vary considerably:

• Basic urbanisation (roads, lighting only): €30–€80/month (€360–€960/year)
• Developed community with pool, landscaping and shared gardens: €100–€300/month (€1,200–€3,600/year)
• Premium gated development with concierge or 24-hour security: €300–€500/month (€3,600–€6,000/year)

Detached rural villas with no shared infrastructure pay no community fees.

Non-resident income tax (Modelo 210)

This is the most frequently overlooked annual cost for foreign owners who do not let their property. Spanish law treats an unrented holiday home as generating a notional income, taxed accordingly. The calculation is:

Notional income = 1.1% of cadastral value (2% for properties whose values have not been revised since 1994)
Tax = notional income × 19% (EU/EEA residents) or × 24% (non-EU nationals)

For a villa with a cadastral value of €150,000, an EU buyer pays approximately €313/year. The figure is modest but the obligation is firm — non-filing attracts penalties. Owners who do rent the property declare actual rental income on the same form for each quarter in which the property was let; the imputed charge does not apply for those periods.

Utilities

Even for properties used seasonally, Spanish utility contracts carry annual standing charges:

Property insurance

Building and contents insurance for a three-bedroom Costa Blanca villa: typically €450–€900/year, depending on rebuild value, location and the scope of coverage. Multi-property discounts are available through UK and Dutch specialist brokers who cover Spanish homes.

Pool and garden maintenance

The private pool and garden are near-universal in this market segment, and both require regular professional attention:

• Pool service (weekly visit, water testing, chemicals): €100–€160/month (€1,200–€1,920/year)
• Garden maintenance (fortnightly or monthly): €80–€160/month (€960–€1,920/year)

These are often handled by a single local contractor, with combined annual costs of €2,200–€3,800.

Annual running cost summary

For a typical €500,000–€650,000 Jávea or Moraira villa with a private pool and a basic urbanisation fee, a realistic annual running cost sits in the €6,500–€9,000 range. Properties in premium gated communities, or larger villas with higher cadastral values, can run to €12,000–€15,000 per year.

How Costa Blanca stacks up against other sun markets

Transaction costs here compare favourably with other European coastal destinations. The Balearics charge ITP at 8–13% (escalating to 13% above €2 million); Catalonia runs at 10%; Andalucía is currently the most competitive at 7%. At 9%, the Valencian Community sits comfortably mid-range. Against the French Riviera — where notaire fees and taxes total 7–10% on top of significantly higher prices per square metre — or the Algarve (IMT up to 8% plus 0.8% stamp duty), the Alicante province offers comparable transaction costs with substantially lower entry prices.

The 2026 ITP reduction has also tipped the maths in buyers' favour. On a €700,000 villa, the combined savings from the ITP and AJD cuts equal roughly €8,000 versus a pre-June 2026 completion.

Planning your Costa Blanca budget

Bringing both layers together gives a clear picture of what committing to a Costa Blanca villa actually costs:

• Day one: purchase price + 11–12% in taxes and fees
• Year one onward: €6,500–€9,000 in annual running costs for a typical villa-with-pool

For buyers relocating from higher-cost property markets in the UK, the Netherlands or Germany, this cost structure — set against 300-plus days of sunshine, established international healthcare, a strong expatriate community and flight times under three hours from most northern European capitals — continues to make the Costa Blanca North one of the most compelling relocation propositions in Europe.

Frequently asked questions

Q: What percentage should I add to a villa's asking price for purchase costs in the Valencian Community in 2026?
A: Budget 11–12% above the agreed price for a resale villa: 9% ITP, 1.4% AJD, and approximately 2–3% for legal, notary, and registry fees. For a €500,000 property that means provisioning around €55,000–€60,000 in transaction costs on top of the purchase price.

Q: Is the Costa Blanca ITP still 10%?
A: No. The Valencian Community reduced ITP to 9% from 1 June 2026, as part of a broader regional tax reform package. Stamp duty (AJD) also fell from 1.5% to 1.4%. The rate that applies is the one in force on your notary completion date.

Q: Do I pay Spanish tax on my villa even if I do not rent it out?
A: Yes. Non-resident owners must file an annual Modelo 210 return and pay a notional income tax based on 1.1% of the cadastral value (2% for older valuations). EU and EEA residents pay 19% on that notional income; non-EU nationals pay 24%. For a villa with a €150,000 cadastral value, an EU buyer's annual bill is around €313.

Q: What does it cost to run a private-pool villa in Jávea or Moraira each year?
A: Most owners of a mid-range villa with pool budget €6,500–€9,000 per year, covering IBI, community fees, utilities, non-resident income tax, insurance, pool service and garden maintenance. Larger properties or premium gated communities can reach €12,000–€15,000.

Q: When and how is IBI paid in the Alicante province?
A: IBI in the Alicante province is managed by SUMA (the provincial tax agency) and is typically billed between August and November each year. Payment can be made directly to SUMA or set up as a bank direct debit — many absent owners authorise their property manager to handle it.

Q: Are there any wealth-tax obligations for foreign villa owners?
A: Non-residents are subject to the national Wealth Tax (Impuesto sobre el Patrimonio) on their Spanish assets only. There is a general allowance of €700,000 per person; net Spanish assets above that threshold are taxed at progressive rates of 0.2%–3.5%. The Solidarity Tax on Large Fortunes applies to net Spanish assets exceeding €3 million.