Property Transfer Tax (ITP) in Alicante: What Foreign Buyers Pay

For buyers coming from the United Kingdom, one of the first numbers to pin down when budgeting a purchase in Alicante is Property Transfer Tax, usually shortened to ITP. Unlike VAT on a new build, ITP is set by the regional government rather than the state, so the percentage you pay depends entirely on where the property sits, not on a single nationwide rule.

At Sókerim we coordinate with your lawyer, notary and bank throughout the purchase, and help confirm the NIE and bank account you need before completion, so that ITP and every other cost are accounted for well before you sign.

Alicante province stretches along Spain's southeastern Costa Blanca, combining lively coastal towns like Benidorm and Torrevieja with quieter inland villages and traditional cities such as Alicante itself. It attracts a wide mix of foreign buyers, from retirees seeking year-round mild weather to families and investors drawn to beach access and established expat communities.

Alicante Airport provides strong international connections, making the area easy to reach for both permanent residents and holiday-home owners. Property types range from modern apartments and coastal villas to inland townhouses, with the region generally quieter outside the summer high season.

Before deciding on a home in Alicante (province), it helps to see the place in numbers: population, asking prices, transport links and climate, each dated and sourced. Together they offer a realistic grounding for anyone weighing up Alicante (province) for a permanent home, a holiday base or a rental.

According to the INE annual census, 2,033,566 people were registered as living in the whole of Alicante province on 1 January 2025. The count takes in every town and village across the province, not only its capital. Across the province of Alicante, 497,387 residents carry a foreign nationality, near 24 of every 100. This is a solid but moderate presence, one that differs a great deal from town to town across the province.

According to INE, 68,904 British nationals were registered in the province of Alicante on 1 January 2025, among the largest foreign communities found there. This suggests that compatriots of the reader are well settled throughout the province. The figure has fallen since 2021, when 75,925 were registered. Such decreases are usually gradual, as residents relocate or fail to keep their registration up to date. The table below lists the largest foreign nationalities registered in Alicante (province) on 1 January 2025, among those INE publishes for every municipality.

For nationalities the census groups together rather than listing them individually, such as Germans, Italians, Dutch, Belgians or Scandinavians, we turn to the detailed INE register for Alicante province. Unlike the table above, this count dates from 1 January 2022, the most recent detailed edition.

In our own price bank, the 33,334 homes currently advertised for sale across the province of Alicante show a median asking price of €2,730/m² and a median ticket of €269,000. That places the province in the middle of the range, close to the €3,135/m² median across the 130 towns we track across Spain. Half of the properties currently listed are priced between €1,880 and €3,650 per square metre, with cheaper and more expensive homes on either side of that middle band.

Based on the median asking price of €269,000 in Alicante (province), transfer tax works out at 9 % — around €24,200 — with a further €3,200 typically going on notary, registry and gestoría fees. Together these add up to roughly €27,400, a sum that must be available in cash before the loan is even drawn down. All prices shown are asking prices from adverts active on 2026-11-01, not completed sales. The price eventually paid is always a matter of negotiation, shaped by condition, precise location and orientation.

This table sets out population, foreign residents per 100 people and median price per square metre for the towns we track in Alicante (province), highlighting how much local markets can vary.

INE's experimental statistic, based on listings from the main holiday-rental platforms, counted 32,148 holiday-let homes in Alicante (province) in 05/2026 (164,954 bed places), about 16 per 1,000 residents. That is a moderate presence, and tourist letting still requires a regional licence. Official data for Alicante (province) show a median long-term rent of €500 a month for a flat in 2024, calculated by the Ministry of Housing from 76,825 tax-declared contracts. The figure looks backward at long-term lets only, not at holiday rentals, and should not be read as a prediction. Monthly rents for flats, drawn from the same official figures, cluster between €400 and €650 for the middle half of tenancies.

As Alicante is served by only one commercial airport, Aeropuerto de Alicante-Elche (ALC), buyers near the provincial border should also weigh up whether an airport just across the boundary might be more convenient. These weather readings come from Alicante, the capital of the province, so inland areas, higher ground or other islands within the same province can show noticeably different conditions. With January averaging 11.7 °C and overnight lows around 6.3 °C, against an August mean of 26.0 °C and highs near 30.8 °C, winters are mild rather than warm. Checking the heating in any home is a sensible step. With only about 311 mm of rain a year across roughly 38 days, this is a notably dry area. Sunshine totals around 2,851 hours a year. Climate data come from AEMET's 1981-2010 normals, recorded at its Alacant/Alicante station around 3 km away; the actual spot may vary a little, particularly further inland or higher up.

The province of Alicante saw 51,383 registered home sales in the year to 07/2026, per INE. A busier market like this generally offers more comparable transactions and greater choice. The figures above cover the whole province of Alicante, but they vary widely from town to town and from property to property. Share what you are searching for and we can review the details with you.

The transfer tax on a resale home is set by each Spanish region. In Alicante the general rate is 9 %, and on top of it come notary, land registry and gestoría (roughly one more percent). On a new build you pay 10 % VAT plus stamp duty instead of the transfer tax. This money is not lent by the bank.

When you buy a resale home in Alicante, you do not pay VAT on the purchase price. Instead you pay Property Transfer Tax, known in Spain as ITP (Impuesto de Transmisiones Patrimoniales). This is a regional tax, set by the autonomous community where the property sits, and it is charged on the higher of the agreed price or the property's reference value used by the tax office. The buyer pays it, not the seller, and it falls due shortly after completion before the notary.

For British buyers used to Stamp Duty Land Tax in England or Land and Buildings Transaction Tax in Scotland, the mechanism will feel familiar: a single tax, paid once, calculated as a percentage of the transaction value, with no further transfer tax due afterwards. What differs is that Spain lets each region set its own rate and its own reductions, so the figure for Alicante is not the same as the figure for a neighbouring province, and it can change from one tax year to the next.

ITP only applies to resale homes. If you buy a new build directly from a developer in Alicante, the purchase is instead subject to VAT at 10 % plus a stamp duty (Actos Jurídicos Documentados), which is also set regionally and charged separately from VAT. Most of the properties British buyers consider through an agency, including flats being resold by a previous owner or homes bought for renovation, fall under ITP rather than VAT, so it is worth confirming which category your target property sits in before you calculate your budget.

Because the rate is regional and subject to change, we do not quote a fixed percentage here; your lawyer or gestoría in Alicante will confirm the exact figure that applies on the date you sign, together with any reduction that might apply if you are buying a primary residence, if you are under a certain age, or if the home qualifies as officially protected housing.

ITP is usually the largest single cost on top of the price, but it is not the only one. Notary fees and Land Registry fees are set by official scale and depend on the property's value and the length of the deed. A gestoría typically handles the tax filing and registration paperwork for a fixed fee, and while a lawyer is optional under Spanish law, we consider one usual and sensible for buyers coming from the United Kingdom who are not familiar with Spanish conveyancing.

None of these costs are refundable if a purchase falls through after the deposit contract is signed, so it is worth having funds confirmed, and your NIE already in hand, before you commit to a specific property in Alicante.

Beyond the tax itself, lenders and the Spanish tax office will want to see that your funds are clearly accounted for. For buyers coming from the United Kingdom we typically see a recent P60 and payslips, the last filed Self Assessment tax return, bank statements from the last three to six months, evidence of any existing loans or mortgage commitments, and a valid passport. Having these ready before you make an offer in Alicante avoids delays once the deposit contract is signed and the clock starts running towards completion.

Since the United Kingdom uses the pound rather than the euro, build in some margin for exchange-rate movement between the day you reserve a property and the day you transfer the balance; currency conversion costs are real money and should be part of your budget alongside ITP.

ITP is a one-off cost paid once at purchase, but owning a home in Alicante brings recurring obligations. Non-resident owners file an annual Modelo 210 return, municipal property tax (IBI) and community fees are due every year, and any rental income is taxed in Spain regardless of where you live. Spain and the United Kingdom have a double taxation agreement, so a local tax adviser should confirm exactly how rental income or any future gain must also be declared to HMRC.

If you later sell as a non-resident, remember the buyer withholds 3 % of the price on account of your Spanish tax, and a separate municipal capital-gains tax (plusvalía) applies on the increase in the land value. None of this replaces proper advice from a tax adviser familiar with both systems, but it gives you the full shape of what ITP is only the first step of.

Spain is a relatively short flight away from most UK airports, making regular visits to a Spanish property straightforward for owners based in Britain. Many British buyers are drawn to Spain for its climate, coastal lifestyle and established expatriate communities. One practical point to bear in mind is that Spanish inheritance law differs from UK rules, so it is worth taking specific advice on how it may affect the property and one's estate. Currency movements between sterling and the euro can also affect the overall cost of purchase and ongoing expenses.

Spain and the United Kingdom have a double taxation agreement in place, and a local tax adviser should confirm how rental income or gains from Spanish property must be declared and reported to HMRC.

As the United Kingdom is no longer an EU member state, British citizens may stay in Spain for up to 90 days in any 180-day period without a visa, and must apply for a visa or residence permit for longer stays.

Since the United Kingdom uses the pound sterling (GBP) rather than the euro, buyers should factor in exchange-rate movements and currency conversion costs when paying for a property or transferring funds to Spain.