Key Steps for a Smooth Purchase
Buying a property in Spain—especially in the stunning Costa Blanca—can be an exciting life decision. Whether you’re relocating, investing, or seeking a vacation home, this region offers great lifestyle value, Mediterranean charm, and long-term potential. Here’s your straightforward, six-step guide to purchasing property in Costa Blanca.
1. Understand the Purchase Process
The property buying process in Spain is structured but manageable with the right support. Here’s how it typically works:
- Make an Offer: Once you find your ideal home, your real estate agent will help you submit a formal offer including your proposed price and any conditions (e.g., mortgage needs or timeframes).
- Offer Accepted? Reserve the Property: If the seller agrees, you pay a reservation deposit (usually 5–10%) to secure the deal.
- Sign the Deed at the Notary: Once financing is in place and all documents are prepared, you’ll sign the public deed of sale at a notary’s office and pay the remaining balance.
Tip: If you’re paying cash, make sure the funds are in a Spanish bank account, to comply with local laws and avoid delays.
2. Decide: New Build, Resale, or Off-Plan?
Each property type has its benefits:
- Resale (Second-Hand) Homes: Previously owned and often located in well-established neighborhoods. These are priced according to market supply and demand.
- New Builds: Recently finished properties that haven’t been lived in. Prices tend to be fixed and reflect modern standards.
- Off-Plan or Under Construction: Ideal for investors. These properties often offer lower prices during early sales stages and may rise in value as the development progresses.
Discuss all options with your agent—Costa Blanca has a healthy mix of each.
3. Cash or Mortgage?
Your budget determines how you pay:
- Cash Buyers: Have a clear spending limit but might want to consider mortgage financing to avoid being undercapitalised.
- Mortgage Buyers: Spanish banks typically lend up to 80% of the property’s appraised value (or less for non-residents—usually 50%).
Consider combining both if it helps you access a better property. Also factor in purchase costs (taxes, notary fees, etc.), which can add 10–13% to the sale price.
4. Applying for a Mortgage in Spain
Getting a mortgage is straightforward, but preparation is key:
- Research interest rates and compare offers from various banks.
- Spain uses the Euribor rate as a reference, and most mortgages follow the French amortization model, where interest payments are front-loaded.
- Decide between fixed and variable rates. Fixed gives you certainty, while variable may save money if the market is favorable.
- Be ready to provide 20–30% of the price in savings, plus cover additional buyer costs.
- Ask about early repayment options and required banking products (insurance, accounts, etc.).
5. Choose the Right Area in Costa Blanca
Costa Blanca stretches from Denia in the north to Pilar de la Horadada in the south. Picking the right location depends on your goals:
- For Living: Prioritise access to schools, work, shops, healthcare, and public transport. Areas like Alicante, Altea, and Javea are popular with families and retirees.
- For Investment/Rental: Look at demand. Are you renting to tourists, students, or locals? Target high-traffic, high-growth areas like Benidorm or Villajoyosa.
- For Holiday Use: Proximity to beaches, views, and amenities matter most.
Let your agent guide you based on market data and your lifestyle preferences.
6. Why You Need a Real Estate Agent
Navigating the Spanish real estate market without a professional can be risky. A qualified agent will:
- Handle legal and financial steps
- Help with paperwork and contracts
- Connect you with lawyers, notaries, and banks
- Protect you from scams or overpriced listings
Good news: In most cases, the seller pays the agent’s commission, not the buyer.
Final Thoughts
Costa Blanca offers an incredible quality of life, strong real estate fundamentals, and solid long-term potential. Whether you’re buying a permanent residence or a second home, the process can be smooth, safe, and rewarding with the right guidance.
Need help navigating your property purchase in Costa Blanca?
neil.collins@expglobalspain.com | +34 648 02 28 74
