Real Estate Lawyer in Alicante: Full legal protection for buying and selling on the Costa Blanca

Real estate lawyer in Alicante and the Costa Blanca: legal protection for the international buyer

The property market in the province of Alicante is one of the most active in Spain for international buyers. Alicante city, Torrevieja, Benidorm, Javea, Denia, Calpe, Altea and Guardamar del Segura attract thousands of buyers every year from the United Kingdom, Germany, the Netherlands, Belgium, Norway and Sweden — looking for a second home on the Costa Blanca or a retirement property in the Mediterranean sun.

BMC advises international buyers throughout the province of Alicante. We know the local property market, the notaries and land registries in the region, the planning particularities of each municipality, and the most common problems that arise during due diligence on Costa Blanca properties.

Real estate legal services in Alicante and the Costa Blanca

• Full legal due diligence throughout the province of Alicante
• Second-hand and new-build property purchases
• Arras and purchase contracts (drafting and review)
• NIE and bank account for foreign buyers
• ITP, VAT and AJD: calculation, payment and submission to the Valencian Tax Authority
• Long-term and holiday tenancy agreements
• Community of owners management for non-resident landlords
• Transactions with non-resident sellers: 3% retention and processing

Holiday lettings on the Costa Blanca: legal framework and requirements

Holiday lettings in the Valencian Community are regulated by Decreto 75/2015 and its subsequent amendments. Properties used for tourist letting must obtain a registration number from the Registro de Turisme de la Generalitat Valenciana before being advertised on platforms such as Airbnb or Booking. Non-compliance can result in fines of up to €400,000. Furthermore, some private developments in Alicante, Javea or Calpe have holiday letting prohibitions in their community statutes. BMC verifies the position of each property before the owner begins any holiday letting activity.

Property due diligence on the Costa Blanca: what the notary does not check

The notary in Spain gives public authentication to the parties’ intentions and the content of the deed, but does not investigate the legal position of the property before signing. That investigation — the due diligence — is the buyer’s responsibility, and its absence is the most frequent cause of property disputes on the Costa Blanca.

A full due diligence in Alicante and the Costa Blanca includes: the nota simple from the Land Registry (encumbrances, mortgages, enforcement orders, easements, usufruct rights); verification of community of owners debts (the buyer inherits the debt for the current year and the previous year if not retained at signing); an IBI certificate (municipal debts that can be claimed from the new owner); a check of the planning status of the property at the relevant Town Hall (building licence, first occupation licence, any pending planning enforcement proceedings); and review of the habitation certificate and energy efficiency certificate (both mandatory for sale).

In municipalities such as Torrevieja, Orihuela Costa, Guardamar or Pilar de la Horadada, there are properties with complex planning histories arising from 1980s and 1990s developments that require specific verification. BMC carries out full due diligence before the client signs any private contract or pays any reservation deposit.

The purchase process for the foreign buyer in Alicante

The process of acquiring a property in Alicante follows a sequence that every international buyer should understand. First, obtaining the Número de Identificación de Extranjero (NIE) — essential for any asset transaction in Spain, which can be processed by power of attorney before the Spanish Consulate in the buyer’s country of residence. Second, opening a Spanish bank account — needed for payment of the price and taxes. Third, signing the arras or reservation contract once due diligence is complete. Fourth, the public deed before a notary and payment of the balance. Fifth, settling ITP (10% in the Valencian Community for second-hand property) before the Valencian Tax Authority within 30 working days of the deed. Finally, registration of the deed at the Land Registry.

Where the seller is a non-resident in Spain, the buyer must retain 3% of the purchase price and pay it to the AEAT on account of the seller’s IRNR through modelo 211, within one month of signing. This obligation falls on the buyer — failure to comply creates subsidiary liability to the AEAT.

Tax obligations of the non-resident property owner on the Costa Blanca

The owner of a property in the province of Alicante who is not a Spanish tax resident has periodic tax obligations that many discover only when they receive an AEAT enquiry notice.

If the property is not let: an annual modelo 210 IRNR filing is required (deadline 31 December of the year following the period), declaring deemed property income at 1.1% of the cadastral value (or 2% if the cadastral value has not been revised in the last ten years). The tax rate is 19% for EU or EEA residents, and 24% for residents elsewhere in the world.

If the property is let: modelo 210 must be filed quarterly (first quarter in April; second in July; third in October; fourth in January of the following year). EU residents may deduct expenses directly related to the letting activity (depreciation, community charges, IBI, repairs, mortgage interest if applicable) before calculating the tax on net income. Non-EU residents are taxed on gross income with no expense deductions.

In addition, the non-resident owner may also be liable for the Wealth Tax if the net value of their Spanish assets exceeds €700,000 (national threshold; the Valencian Community applies a 75% rebate on the regional element of the tax). The declaration is filed using modelo 714 during the income tax season (April–June). BMC manages all of these obligations on an integrated basis for non-resident owners throughout the province of Alicante.

Transactions with non-resident sellers: the 3% retention

Where the seller of a property on the Costa Blanca is not a Spanish tax resident, Spanish law imposes a very specific obligation on the buyer: to retain 3% of the agreed purchase price and pay it to the AEAT within one month of the deed, using modelo 211. This retention acts as an advance payment on account of the seller’s IRNR liability on the capital gain arising from the sale.

If the tax actually owed by the seller is less than the amount retained (or if the seller has made a loss), the seller may apply for a refund of the excess using modelo 210 within four years. If the buyer fails to make the retention, the buyer becomes subsidiarily liable to the AEAT for the amount not retained. BMC handles this process as a standard part of every transaction involving a non-resident seller in the province of Alicante.

Tenancy law on the Costa Blanca: landlord obligations

The Ley 29/1994 de Arrendamientos Urbanos (LAU), as amended by Ley 4/2013 and Real Decreto-ley 7/2019, governs residential tenancy agreements in Spain. The most relevant points for Costa Blanca landlords wishing to let their property are:

Minimum duration: residential tenancy agreements have a minimum duration of five years where the landlord is an individual (seven years where the landlord is a legal entity). The tenant may withdraw from the contract with two months’ notice once six months have passed from the start, but the landlord cannot recover the property before that minimum period except to use it as a permanent primary residence for themselves or first-degree relatives (and only where this was expressly stated in the contract). This enhanced tenant protection is particularly relevant for non-resident landlords who might need the property back at short notice.

Rent increases: since Ley 12/2023 on the right to housing, annual rent increases are capped at the Índice de Garantía de Competitividad (IGC), with a maximum ceiling of 3% in 2024 and the specific index set by the INE from 2025 onwards.

Mandatory deposit: the LAU requires a deposit equivalent to one month’s rent (two for non-residential tenancies). In the Valencian Community, the deposit must be lodged with the relevant Valencian authority within two months of the tenancy beginning. Failure by the landlord to do so may result in administrative penalties.

BMC drafts tenancy agreements for landlords throughout the Costa Blanca, ensuring the contract complies with the LAU, is tailored to the landlord’s specific needs (necessity clause, expenses regime, additional guarantees) and has been correctly lodged with the regional authority.

BMC has a representation in Alicante. See our Alicante representation for local support.