Sunset Developments

NOVEMBER 2026

Your Trusted Real Estate Advisor in Spain

How Much Does It Really Cost to Buy a New-Build Holiday Home in Spain in 2026?

A note from our agent

Buying a holiday home in Spain is an exciting prospect. Whether you dream of enjoying long summer holidays, escaping the British winter or having your own place in the sunshine, purchasing a property in Spain could be one of the most rewarding decisions you make.

But before you start looking at villas, apartments and golf resort properties, there is one important question to consider:

How much does it actually cost to buy a new-build property in Spain, including taxes and additional expenses?

If you're considering the Costa Blanca or Costa Cálida, this guide explains the main costs you should budget for when purchasing a new-build holiday home in 2026.

1. The purchase price of your property

The starting point is, of course, the advertised property price.

Across the Costa Blanca and Costa Cálida, there is a wide choice of new-build properties to suit different budgets and lifestyles.

You might be looking for:

- A modern two-bedroom apartment close to the beach. - A private villa with its own swimming pool. - A bungalow with a spacious terrace and solarium. - A property on an established golf resort. - A holiday home within walking distance of restaurants, shops and amenities.

When comparing properties, always check exactly what is included in the advertised price. Some developments include appliances, air conditioning, fitted kitchens, landscaped gardens and private pools, while others offer these as optional extras.

Understanding what is included will help you compare the true cost of different properties.

2. VAT (IVA) – 10% on new-build homes

When purchasing a new-build residential property directly from a developer in Spain, the standard VAT rate is generally 10%.

This is known as IVA in Spain.

For example:

- Property price: €200,000 - VAT at 10%: €20,000 - Property price including VAT: €220,000

VAT is normally paid to the developer as the purchase payments become due. If you are buying a property off-plan, VAT will generally apply to the relevant stage payments.

This is an important cost to factor into your overall budget.

3. Stamp Duty (AJD)

In addition to VAT, buyers of new-build properties normally pay a tax called Actos Jurídicos Documentados (AJD), commonly referred to as stamp duty.

The rate depends on which Spanish autonomous region the property is located in.

For buyers considering our two main areas:

Costa Blanca – Alicante region

The general AJD rate is 1.4% from 1 June 2026.

Costa Cálida – Murcia region

The general AJD rate is 1.5%.

These rates are based on the general applicable rates for new-build purchases and are subject to individual circumstances and applicable legislation.

4. Legal fees, notary and Land Registry costs

You should also allow for the professional and administrative costs involved in completing your purchase.

These may include:

Independent solicitor

We strongly recommend using an independent Spanish property lawyer who represents your interests throughout the purchase.

Your lawyer can:

- Check the developer and property documentation. - Review the purchase contract. - Check planning permissions and relevant licences. - Verify that the property is free from unexpected debts or charges. - Check the arrangements protecting payments made before completion. - Assist with your NIE and other paperwork.

Legal fees vary depending on the lawyer and the complexity of the purchase.

Notary fees

The notary oversees the signing of the official title deed, known as the Escritura.

Land Registry

Once the purchase is completed, the property needs to be registered in your name at the Spanish Land Registry.

There may also be administrative or gestoría fees depending on how your purchase is handled.

5. How much should you budget in total?

Let's look at a practical example of buying a new-build holiday home for €250,000.

Example: €250,000 new-build property

Purchase cost| Costa Blanca| Costa Cálida Property price| €250,000| €250,000 VAT (10%)| €25,000| €25,000 AJD| €3,500| €3,750 Total before other fees| €278,500| €278,750

You will also need to allow for legal fees, notary, Land Registry and any administrative costs.

As a general budgeting guide, many buyers allow approximately 12–14% on top of the advertised property price for a new-build purchase, although the actual amount will depend on the property, professional fees and circumstances.

The important thing is to establish your full budget before committing to a purchase.

6. What are the ongoing costs of owning a holiday home in Spain?

Once you have purchased your property, there are some regular expenses to consider.

These can include:

IBI (Council Tax)

This is the annual local property tax, calculated using the property's cadastral value and the applicable local rate.

Community fees

If your property is within an apartment complex, gated development or golf resort, you may have monthly or annual community fees.

These contribute towards maintaining communal areas, swimming pools, gardens, lifts and other shared facilities.

Utilities

Electricity, water, internet and other services will need to be budgeted for, even if you only use your property for part of the year.

Home insurance

Buildings and contents insurance is worth arranging to protect your holiday home.

Non-resident tax

If you are not tax resident in Spain, you may have Spanish tax reporting obligations even if you do not rent out your property. The tax treatment depends on your circumstances.

If you intend to rent your property to holidaymakers, additional tax and licensing requirements may apply.

7. Is buying a new-build holiday home in Spain worth it?

For many international buyers, a new-build property offers several advantages.

Modern layouts, contemporary kitchens and bathrooms, energy-efficient construction and outdoor living spaces make these properties particularly attractive for holiday-home ownership.

Many developments also offer communal swimming pools, landscaped gardens, sports facilities and easy access to golf courses, beaches and local amenities.

Another advantage is being able to choose a property that suits your lifestyle from the beginning, rather than spending time and money modernising an older home.

The Costa Blanca and Costa Cálida offer a particularly appealing combination of sunshine, Mediterranean beaches, golf resorts, restaurants and a relaxed outdoor lifestyle.

Whether you prefer a coastal apartment or a private villa with a swimming pool, there are plenty of options to explore.

8. Why choose Sunset Developments?

At Sunset Developments, we specialise in helping international buyers find new-build properties across the Costa Blanca and Costa Cálida.

Having lived in Spain for more than 28 years and with over 18 years of property experience, we understand how important it is to find the right property, in the right location and within the right budget.

We offer personal guidance throughout your property search, helping you compare developments, understand the buying process and make informed decisions.

From your initial enquiry to completion, we're here to make buying your holiday home in Spain as straightforward and enjoyable as possible.

Ready to Find Your Place in the Spanish Sun?

Whether you're looking for a modern apartment near the beach, a private villa with a swimming pool or a property on one of Murcia's beautiful golf resorts, Sunset Developments can help you find the right new-build home.

Explore our latest properties or get in touch for a friendly, no-obligation conversation about buying your holiday home in Spain.

Your Spanish property journey, made personal.

Warmly,

Mark Willoughby

— Founder

Your Trusted Real Estate Advisor in Spain

+34711052083

hola@sunsetdevelopments.es

sunsetdevelopments.es

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