Guide to Buying Luxury Real Estate on the Costa Blanca

The Costa Blanca is one of the most attractive regions in Spain for luxury real estate investment, and Moraira, with its unique charm and exclusive atmosphere, is one of the most sought-after jewels. For foreign buyers interested in acquiring a luxury property in Moraira, Benissa, Benitachell, or Calpe, the process can be somewhat complex if you are not familiar with local regulations. In this article, we will explore the essential steps and some useful tips to help you navigate the luxury real estate market on the Costa Blanca.

1. Understanding the Purchase Process in Spain

For foreign buyers, it is important to understand the stages of the purchase process in Spain. Generally, the process begins with the signing of a reservation contract, followed by the signing of a purchase contract (when 10% of the purchase price is paid). Finally, the deed is executed before a notary, where the property is transferred.

It is advisable to work with a lawyer specialized in real estate transactions to ensure that the process is legal and transparent. A lawyer can review all documents, check the legal status of the property, and verify that there are no outstanding liens or mortgages.

2. Obtaining the Foreigner Identification Number (NIE)

The NIE (Foreigner Identification Number) is mandatory for any foreigner who wishes to carry out financial transactions in Spain, including the purchase of a property. You can apply for the NIE at the local police station or through the Spanish consulate in your country of origin. This number is essential and should be requested as soon as possible to avoid delays in the purchase process.

3. Opening a Bank Account in Spain

To facilitate transactions and payments related to the property, it is advisable to open a bank account in Spain. Spanish banks offer accounts specifically designed for non-residents, making it easier to pay taxes, mortgages, and services such as electricity and water.

4. Understanding the Costs Associated with the Purchase

Beyond the property price, there are additional costs that should be considered:

• Property Transfer Tax (ITP) or VAT (in case of a new property), which ranges between 10% and 11% of the purchase price.
• Notary and Registration Fees, which can range between 1% and 2% of the property price.
• Lawyer Fees, which generally amount to around 1% of the property's value.
• Agency Fees, which are usually paid by the seller, but in some cases may be borne by the buyer.

It is essential to include all these costs in the budget to avoid surprises.

5. Financing: Mortgages for Foreigners

If you need financing, many banks in Spain offer mortgages to non-residents. Typically, these mortgages cover between 60% and 70% of the property value, and the buyer is required to provide the rest. Mortgage conditions vary, so it is advisable to compare several offers before deciding on one.

6. Choosing the Type of Property: Consider Your Needs and Goals

In Moraira and the surrounding areas of the Costa Blanca, there is a wide variety of properties, from modern luxury villas with sea views to charming Mediterranean-style fincas. It is important to define your needs and investment goals before searching for a property:

• Second Residence: If you are looking for a vacation home, a villa near the coast, with easy access to beaches and restaurants, may be ideal.
• Vacation Rental Investment: In this case, you should consider properties that offer attractive amenities for tourists, such as pools, terraces, and proximity to beaches and points of interest.
• Permanent Residence: If your goal is to move, you will need to consider access to essential services such as medical centers, international schools, and shops.

7. Advice from a Specialized Real Estate Agent

The luxury market of the Costa Blanca has particular characteristics that require good local knowledge. Having the help of a real estate agent specializing in luxury properties will make the process easier, as these professionals know the market, fair prices, and have access to exclusive properties that are not always advertised publicly.

At Unique Homes Moraira, we are committed to offering a personalized and professional service to ensure that you find the perfect property that meets your expectations and suits your needs.

8. Legal Requirements and Taxation for Foreigners

Foreign buyers must be aware of their tax obligations. This includes the payment of:

• Non-Resident Income Tax, if the property is rented.
• Property Tax (IBI), which is paid annually to the local town hall.
• Community fees if the property is in an urbanization.

Additionally, it is important to know the regulations on property use, especially if you plan to rent it short-term. Some areas have specific restrictions on holiday rentals.

9. Golden Visa: Residence through Investment

If you are considering an investment of over 500,000 euros, you may be eligible for the Golden Visa, which grants residency to investors and their families. This is an excellent option for those looking not only for a luxury property on the Costa Blanca but also for the possibility of residing in Spain and traveling throughout the European Union without restrictions.

Conclusion: Navigate the Market with Confidence

Buying a luxury villa in El Portet de Moraira or in other areas of the Costa Blanca can be an enriching experience and a safe investment, as long as the proper steps are followed. Planning and the correct advice are key to avoiding problems and making the process as enjoyable as the destination itself.

At Unique Homes Moraira, we are here to accompany you throughout the process, offering our knowledge and experience to help you find the property of your dreams. With a bit of preparation and the right support, you can become the proud owner of a home in one of the Mediterranean's most exclusive destinations.