Costa Blanca Mortgage Guide - Feb 2026

1) Can non-residents (eg, UK buyers) get a mortgage in Spain?

Yes. Spanish banks lend to residents and non-residents, but terms are usually different (deposit size, documentation and affordability checks). A common rule-of-thumb you'll see in practice is:

• Residents: up to ~80% LTV in many cases
  

• Non-residents: often ~60–70% LTV (sometimes less, depending on risk profile)
  

These are not legal limits; each lender sets its own criteria and may tighten/relax depending on borrower profile and property type.

2) “Resident” vs “non-resident” in Spain (why it matters)

For tax purposes, Spain generally treats an individual as tax-resident if they spend more than 183 days in Spain in a calendar year (and/or meet other “center of interests” tests). That distinction often lines up with how banks label borrowers in practice.

3) The key numbers you should budget for in Alicante Province

A) Resale property (most apartments/villas on the Costa Blanca)

ITP (property transfer tax) in Valencian Community

As of Feb 2026, the general ITP rate is 10% for most resale purchases.

A confirmed, scheduled change is in place:

• From 1 June 2026 (inclusive): the general rate reduces to 9%
  

• The 11% rate still applies for higher-value transactions above €1,000,000 (per the regional rules described in professional tax summaries).
  

Why this matters: if you're buying in March–May 2026, your completion date can change the ITP you pay.

B) New build (buying directly from a developer)

For new residential property in Spain, buyers generally pay:

• VAT (VAT): 10% (standard rate for housing)
  

• AJD (stamp duty): varies by region. For Comunitat Valenciana, professional summaries confirmed:
  
  

  • AJD general rate: 1.5% (current)
    

  • From 1 June 2026: 1.4% (scheduled reduction)
    

Note: Reduced VAT rates can apply in specific housing categories and fact patterns; If you're buying a new build, your lawyer should confirm the correct VAT treatment for that purchase.

C) Other buying costs (not taxes)

Beyond ITP/IVA/AJD, you should also budget for:

• Notary fees
  

• Land Registry fees
  

• Legal fees
  

• Bank valuation
  

• Potential mortgage arrangement / admin fees (bank-dependent)
  

These vary by price and complexity, but local buyer guides commonly estimate total “all-in costs” (taxes + fees) around the low-teens percentage for typical Costa Blanca purchases.

4) Spanish mortgage types (what you'll be offered)

Most buyers will see three product structures:

1. Fixed rate — payment stability
   

2. Variable rate — typically linked to Euribor + bank margin (payments can change)
   

3. Mixed — fixed for an initial period, then variable
   

Availability depends on lender appetite and borrower profile.

5) Step-by-step: how a mortgage purchase works in Torrevieja / Orihuela Costa

Step 1 - Choose your structure early (and avoid wasting time)

Before you sign anything binding, decide:

• Will you need a mortgage?
  

• Are you buying resale vs new build (changes your taxes)
  

• Are you resident or non-resident (changes typical LTV and paperwork)
  

Step 2 – Prepare your documentation (banks won't move without it)

Spanish banks commonly require:

• ID (passport / NIE details where applicable)
  

• Proof of income (employment / self-employed)
  

• Bank statements
  

• Existing debt commitments
  

• Evidence of deposit funds (and source of funds checks)
  

If you're non-resident, expect deeper documentation scrutiny.

Step 3 - Valuation

The bank instructs an independent valuation. The lending decision is heavily influenced by this valuation.

Step 4 – Pre-contract mortgage disclosure and the “10-day rule”

Under Law 5/2019 on real-estate credit agreements, borrowers must receive the pre-contract information in advance, and there is a mandatory notary information step. This is designed to ensure you understand key terms before signing.

Step 5 - Completion at the notary + registration

In Spain, completion is formalized at the notary (title deed and, if applicable, the mortgage deed). After signing, the deed is processed with the Land Registry so ownership is properly recorded.

6) The biggest “gotchas” we see in Alicante Province

1) Budgeting for the wrong tax (ITP vs VAT/AJD)

Resale = ITP
New build from developer = IVA + AJD
Mixing these up is one of the fastest ways to blow your cash budget.

2) Assuming you'll get “UK-style” LTV

Many non-resident buyers plan on 80–90% lending and get caught out. In practice, non-resident lending is often lower.

3) Leaving timing too late (especially around June 2026 tax changes)

If you're aiming for the post-1 June 2026 lower ITP/AJD rates, completion date matters. Your lawyer should advise on how “devengo” (tax triggering moment) applies to your transaction.

4) Underestimating mortgage set-up costs

Even with a strong rate, fees like valuation, notary/registry on the mortgage deed, and bank admin can add up. Make sure you request a written cost breakdown from the lender/broker.

7) Practical checklist for buyers in Torrevieja / Orihuela Costa

Before you reserve a property:

• Confirm whether it's resale or new build
  

• Get a mortgage affordability sense (resident vs non-resident)
  

• Get a cost estimate including taxes + fees + mortgage costs
  

Before you sign at the notary:

• Ensure you've received pre-contract mortgage info in good time
  

• Have your lawyer confirm:
  

  • title / charges / debts
    

  • community fees situation
    

  • correct tax treatment (ITP vs VAT/AJD)
    

  • completion timing vs June 2026 tax changes

8) FAQs (for real buyers)

What is the property transfer tax (ITP) in Alicante / Torrevieja right now?

10% (general rate) as of Feb 2026 in Comunitat Valenciana for most resale purchases, with a scheduled reduction to 9% from 1 June 2026 (and higher-value rules still applying).

What taxes do I pay on a new build?

Typically 10% VAT (VAT) plus AJD (stamp duty). The general AJD rate in Comunitat Valenciana is scheduled to reduce from 1.5% to 1.4% on 1 June 2026.

Do I have to use a notary in Spain?

Yes, Spanish property transfers (and mortgage deeds) are signed before a notary as part of the standard legal process.

Note

This article is general information and not financial or legal advice. Mortgage availability and tax treatment depend on your circumstances and the specific property. Always confirm figures with a regulated mortgage adviser/bank and an independent Spanish property lawyer.