How much does it really cost to buy or sell a house in Alicante? (Beyond the price)

Buying or selling a property in the province of Alicante involves much more than agreeing a price between buyer and seller. There are taxes, administrative costs, bank charges and tax obligations that can have a significant impact on the final result of the transaction.

In 2026, the costs of buying a property continue to represent approximately 10% to 15% in addition to the value of the property, depending on whether it is a new-build property or a resale property. In addition, the seller must also cover certain costs, such as municipal capital gains tax, mortgage cancellation costs or personal income tax on the capital gain obtained.

Knowing all these costs is essential in order to correctly plan both the purchase and the sale of a property in Alicante.

Taxes: VAT vs. ITP depending on the type of property

Taxes vary depending on the type of property and the nature of the transaction.

VAT (10%) for new-build properties + AJD

When buying a new-build property in Alicante, the buyer must pay:

• VAT at 10% of the purchase price.
• AJD (Stamp Duty), which in the Valencian Community is usually around 1.5%.

For example, on a new-build property worth €200,000, VAT would be €20,000 and AJD approximately €3,000.

The costs of buying a new-build property are usually higher precisely because VAT and AJD are applied together.

ITP for resale properties in the Valencian Community

VAT does not apply to resale properties; instead, the applicable tax is ITP in the Valencian Community (Transfer Tax).

The general rate in the Valencian Community is currently 10%, although reductions may apply for certain groups and circumstances.

On a resale property worth €200,000, the ITP would amount to €20,000.

Before buying, it is important to calculate the full costs of buying a property in order to know the real budget required.

Notary, Land Registry and administrative management costs

Both buyers and sellers may have certain administrative costs associated with the transaction.

The main costs include:

• Notary: normally between €600 and €1,200, depending on the property price and the complexity of the deed.
• Land Registry: between €400 and €800.
• Administrative management: usually between €300 and €600 if mortgage financing is involved.

The notary costs for buying a property are necessary in order to legally formalise the transfer of ownership.

When selling, the seller may also have to pay additional notary costs if there is a mortgage cancellation or notarial powers of attorney.

Mortgage costs (if you need one)

When the purchase is financed with a mortgage, additional costs arise.

Valuation, arrangement fee and insurance

The most common mortgage-related costs are:

• Bank valuation: between €250 and €500.
• Arrangement fee: some banks still apply it.
• Compulsory home insurance.
• Life insurance linked to the mortgage in many cases.

Although banks currently cover a large part of mortgage costs, it is still advisable to compare terms between different lenders.

In the case of the seller, if there is still an outstanding mortgage, they will have to pay the costs of removing the charge from the Land Registry and, in some cases, early repayment fees.

Costs payable by the seller of a property in Alicante

Many people are unaware that selling a property also generates significant costs and taxes.

The main costs for the seller are:

• Municipal capital gains tax: a tax on the increase in value of urban land.
• Personal income tax on the capital gain: if there is a profit between the purchase price and the selling price.
• Mortgage cancellation: if the property is still subject to a mortgage.
• Compulsory energy performance certificate.
• Estate agency fees: normally 5% of the sale price.

Municipal capital gains tax depends on the cadastral value and the number of years the property has been owned.

As regards personal income tax, the seller must declare the gain obtained in their income tax return, unless a legal exemption applies.

Practical example: total costs for a €200,000 flat in Alicante

Let us look at an indicative example of real costs.

Case 1: New-build property

Property price: €200,000

Buyer’s costs:

• VAT (10%): €20,000
• AJD (1.5%): €3,000
• Notary: €900
• Land Registry: €600
• Administrative management: €400
• Valuation: €350

Approximate total buyer’s costs: €25,250

Case 2: Resale property

Property price: €200,000

Buyer’s costs:

• ITP in the Valencian Community (10%): €20,000
• Notary: €900
• Land Registry: €600
• Administrative management: €400
• Valuation: €350

Approximate total buyer’s costs: €22,250

Now let us assume that the seller obtains a capital gain of €50,000:

Possible seller’s costs:

• Municipal capital gains tax: approximately between €1,000 and €4,000.
• Personal income tax on the capital gain: variable depending on tax brackets.
• Energy performance certificate: between €80 and €200.
• Estate agency fees: 5% of the sale price.

Deductible expenses in the income tax return

Both buyers and sellers may benefit from certain tax advantages.

The most common include:

• Previous deductions for a main residence purchased before 2013.
• Deductible expenses related to properties used for rental purposes.
• Tax deductions for energy-efficiency improvements.
• Exemption for reinvestment in a main residence.
• Exemption for people over 65 when selling their main residence.

Taxation may vary depending on each personal and financial situation.

Tips to reduce purchase costs

Reducing the costs of buying a property and optimising selling costs is possible with good planning.

Some useful recommendations are:

• Compare different mortgages before signing.
• Negotiate bank fees.
• Request several quotes for notary and administrative management services.
• Check possible ITP reductions in the Valencian Community.
• Check the municipal capital gains tax calculation before selling.
• Analyse the tax impact of the capital gain.
• Rely on specialised property and tax advice.

Buying or selling a property in Alicante can be a very profitable transaction, but knowing all the associated costs is essential in order to avoid unexpected expenses and make safe decisions.

Do you want to know exactly how much it will cost you to buy or sell your property with ESPHOUSES? Request a personalised quote from our advisers.