Buying Property on the Costa Blanca as a Foreigner (2026): Alicante, Torrevieja, Jávea and the North-South Divide

Published on: July 11, 2026

Last verified: 11 July 2026. Spanish property, tax and residency rules vary by region and change. Verify before acting.

The Costa Blanca is the single most international stretch of coastline in Spain, foreign buyers account for the largest share of transactions of any Spanish region. But "the Costa Blanca" is really two markets stitched together along the Alicante coast. A €2 million villa on a pine-covered hillside in Moraira and an €85,000 apartment near the salt lakes of Torrevieja are both technically the Costa Blanca, and choosing between them shapes your budget, your rental yield, and the community you will live in. This guide explains the north-south divide, what a foreigner actually pays to buy, and the two headline policy stories, the end of the Golden Visa and the widely misreported "100% tax", that every buyer is asking about in 2026.

The north-south divide: two coasts, two budgets

The practical dividing line runs roughly through Alicante city. To the north, the Bética mountains meet the sea; to the south, the land flattens into wide sandy beaches, salt lagoons, and golf estates.

Costa Blanca North (Dénia, Jávea/Xàbia, Moraira, Benissa, Calpe, Altea) is the premium, low-density end. Rugged terrain physically limits new construction, which keeps supply tight and prices firm. Expect roughly €2,500 to €5,000 per square metre, with detached villas the standard. Jávea and Moraira are the two anchors: Jávea draws a large British, Dutch and German community and strong international schools, while Moraira is quieter and more exclusive, with well-established Belgian and Dutch networks. The northern towns have delivered some of Spain's strongest coastal appreciation over the past decade.

Costa Blanca South (Torrevieja, Orihuela Costa, Ciudad Quesada, Guardamar, Pilar de la Horadada) is the value coast. Prices run closer to €1,500 to €2,500 per square metre, and the market is dominated by apartments and townhouses in purpose-built urbanisations. Torrevieja is the commercial and social hub, with one of Spain's largest expat populations (mostly British and Scandinavian retirees), a major hospital, and entry-level apartments starting well under €100,000. Orihuela Costa, just south, is golf-and-beach country: La Zenia, Playa Flamenca, Cabo Roig and Villamartín, anchored by the huge La Zenia Boulevard shopping centre.

A quick rule of thumb: the north typically costs 30 to 60% more per square metre, and a comparable two-bedroom new build runs roughly €190,000 to €280,000 in the south versus €350,000 to €500,000 in the north. The trade-off is yield, the southern "value coast" tends to produce higher gross rental returns (often 6 to 8%) thanks to a deep, year-round pool of international renters, while the north is bought more for lifestyle than cash flow.

The Golden Visa is gone, but you can still buy freely

The most important thing a non-EU buyer needs to know in 2026: Spain abolished its Golden Visa on 3 April 2025. Buying a property worth €500,000 or more no longer grants any residence permit. Existing Golden Visa holders keep their status and can renew under transitional rules, but no new applications are accepted.

What has not changed is your right to buy. Foreigners, EU and non-EU alike, can still purchase apartments, villas and land on the Costa Blanca with exactly the same ownership rights as Spanish nationals. There is no ban and no cap. Ownership simply no longer comes bundled with residency.

If living in Spain is the goal, the property purchase and the residence application are now two separate projects. The routes most Costa Blanca buyers use are the Non-Lucrative Visa (for retirees and those with sufficient passive income) and the Digital Nomad Visa (for remote workers). Both require proof of income and private health insurance, and both lead to long-term residency after five years. Owning a home helps demonstrate ties to Spain, but it is not itself a visa.

The "100% tax" rumour, explained accurately

In January 2025, Prime Minister Pedro Sánchez floated the idea of a punitive tax on non-EU, non-resident buyers, and a draft bill followed in May 2025. International headlines translated this into "Spain's 100% tax on foreigners."

Here is the accurate position as of mid-2026: it is a proposal, not law. It has not been voted on, no commencement date exists, and the minority government does not have the parliamentary numbers to pass it. Legal experts also question whether a tax that discriminates by nationality would survive EU free-movement-of-capital rules or a Spanish constitutional challenge.

Three practical points matter even if it were ever revived:

• It was drafted to apply only to non-EU, non-resident buyers of resale property. EU nationals are excluded.
• New-build purchases from a developer are taxed under VAT (IVA), not the transfer tax the surcharge would attach to, so off-plan and new construction would fall outside its scope entirely.
• Establishing legal residence in Spain before completing would remove the trigger.

Meanwhile the real 2026 legislative change went the other way for the Costa Blanca: the Comunidad Valenciana cut its general property transfer tax (ITP) from 10% to 9% and stamp duty (AJD) from 1.5% to 1.4%, effective 1 June 2026, a genuine saving on resale purchases.

What a foreigner actually pays

Budget for taxes and fees on top of the purchase price:

• Resale property (from a private seller): ITP transfer tax of 9% in the Valencia region (as of 1 June 2026), on the higher of the price or the cadastral reference value.
• New build (from a developer): VAT (IVA) at 10%, plus stamp duty (AJD) at 1.4%.
• Notary and land registry fees: typically 1 to 2% combined.
• Legal fees: an independent lawyer usually charges around 1% (strongly recommended, do not rely on the seller's or developer's lawyer).

All in, plan for roughly 10 to 13% above the headline price. You will also need a Spanish NIE (foreigner's tax number) before you can complete, and a Spanish bank account is effectively required.

Ongoing costs include IBI (annual municipal property tax), community fees if you buy in an urbanisation, and non-resident income tax (filed via Modelo 210), charged at 24% for non-EU owners and 19% for EU owners on deemed or actual rental income.

Rental licences and the Valencia crackdown

If part of your plan is holiday-letting, note that the Valencian government has tightened the rules on new tourist licences to protect residential housing stock. A property that already holds a valid tourist licence now carries a premium precisely because new ones are harder to obtain. If short-term rental income is central to your maths, verify the licence status of the specific property, and the local municipality's stance, before you sign, ideally through your lawyer.

Frequently asked questions

Can foreigners still buy property on the Costa Blanca in 2026?
Yes, without restriction. Both EU and non-EU nationals have the same ownership rights as Spanish citizens. There is no foreign-buyer ban and no cap on how much you can buy.

Does buying a house on the Costa Blanca give me residency?
No. Spain ended the property-linked Golden Visa on 3 April 2025. Owning a home no longer grants a residence permit. To live in Spain, apply separately through routes such as the Non-Lucrative Visa or Digital Nomad Visa.

Is the 100% property tax on foreigners real?
It is a proposal that has not become law. As of mid-2026 it has not been voted on, has no start date, and would apply only to non-EU, non-resident buyers of resale property if it ever passed. New-build purchases and Spanish residents would be outside its scope.

Is the north or south of the Costa Blanca cheaper?
The south (Torrevieja, Orihuela Costa) is markedly cheaper and higher-yielding, with prices around €1,500 to €2,500/m². The north (Jávea, Moraira) is premium at roughly €2,500 to €5,000/m² and is bought mainly for lifestyle rather than rental return.

What are the total buying costs on the Costa Blanca?
Around 10 to 13% on top of the purchase price, covering transfer tax or VAT, notary, land registry and legal fees. Valencia's ITP fell to 9% on resale purchases from 1 June 2026.

Do I need a Spanish lawyer to buy?
It is not legally mandatory, but it is strongly advised. An independent lawyer verifies title, checks planning and licence compliance, and confirms there are no debts attached to the property, especially important in high-demand urbanisations.

Explore Costa Blanca listings on JanusHermes

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This article is for general information only and does not constitute legal, tax or investment advice. Spanish property, tax and residency rules vary by region and change over time, and your position depends on your residency status and nationality. The Valencian ITP rate and any national tax proposals in particular should be confirmed for your specific case. Always engage an independent Spanish lawyer (abogado) and, where relevant, a tax adviser before committing funds.

A note on the numbers: where no source is named, the market figures in this article (prices, yields, costs) are indicative estimates compiled from publicly available market data and industry reporting at the time of writing. Markets move and rules change, so treat them as a starting point and verify current figures with official sources before acting on them.