When people start looking for a home in Torrevieja, they usually think about one figure first: the price. But buying a home comes with other costs that are worth knowing from the start. Taxes, the notary, the Land Registry, a mortgage valuation or a gestoría can all add to the total you need to complete the purchase. So before you reserve a home, work out not only what the house costs but how much money the whole purchase will take.
New or resale: the first big difference
The taxes change depending on whether you buy a new home directly from the developer or a resale home. This matters, because it decides a large part of the costs. On a resale home the buyer generally pays Transfer Tax (ITP). On a new home the purchase is normally subject to VAT (IVA) and Stamp Duty (AJD). The Spanish Tax Agency and the General Council of Notaries give a VAT rate of 10% for the ordinary purchase of a new home.
What taxes do you pay on a resale home in Torrevieja?
Torrevieja is in the Valencian Community, where buying a resale home is normally subject to Transfer Tax (ITP). Since 1 June 2026 the general rate is 9%. When the property is worth more than €1,000,000, the rate is 11%.
For example, on a resale home of €180,000, assuming the general rate applies and that is the taxable base, the ITP would be €16,200, plus notary, Registry and any other costs. There are reduced rates for certain cases: some purchases of a first main home by young people, protected housing, large or single-parent families, people with certain degrees of disability and other cases that meet the Valencian rules.
To work out the taxable base you also need the Cadastre's reference value, where there is one. For the tax, the general rule is to take the highest of the reference value, the agreed price and the declared value.
What taxes do you pay on a new home?
When you buy a new home directly from a developer, the system is different. You normally pay VAT on the purchase price. On the ordinary purchase of a new home, the general rate is currently 10%.
You also need to allow for Stamp Duty (AJD). In the Valencian Community, the Valencian Tax Agency currently gives a general AJD rate of 1.5%, with other rates in certain situations. For first copies of deeds buying a main home there is a rate of 0.1%, if the requirements are met. These differences are exactly why it is worth calculating the costs for the specific home and the specific buyer.
The notary
The public deed gives the sale legal certainty. Among other things, the notary checks who the parties are, who owns the home, whether there are charges on it, the state of the community of owners, how the money is paid and some tax points of the sale.
Notary fees are set by an official scale, so they are not a free figure. The final cost can vary with the price of the property, the length of the deed and other details. Remember too that how some deed costs are shared can depend on what buyer and seller agree and on what the law sets.
The Land Registry
After the deed is signed, the home is usually registered in the new owner's name at the Land Registry. Registration gives legal protection and makes public who owns the property. Registry fees are also set officially, so they are another amount to include in your budget.
Do you have to pay a gestoría?
Not always. A gestoría can handle tasks such as filing the taxes and registering the deed. But the buyer can also do some of this personally, or arrange it through the notary, depending on the case. If there is a mortgage, the paperwork is usually a little longer.
What costs come with a mortgage?
Many buyers in Torrevieja need bank finance. In that case, keep the costs of the purchase separate from the costs of the mortgage.
Since the changes in the mortgage credit law, the bank pays certain costs of setting up the loan, such as the notary, the Registry, the gestoría and the tax on the loan. The buyer normally pays for the valuation of the property. There may be other costs depending on each bank's terms, so it is worth comparing several mortgage offers.
The mortgage valuation
If you ask for a mortgage, the bank needs to know the value of the home it is financing, so an official valuation is done. The result matters: the bank usually works out the most it will lend from limits linked to the purchase price and the valuation. This means you need not only the money for taxes and costs, but also your own funds for the part of the price the bank does not finance.
The reservation and the deposit contract (arras)
The deposit is not really an extra cost if you go ahead, because it is usually deducted from the price. But it is money you need to have available early on.
The arras contract has legal weight. The General Council of Notaries points out that it is a valid contract and that its consequences depend on how it was agreed. With penitential arras, for example, if the buyer pulls out they may lose the deposit, and if the seller pulls out they may have to pay it back twice over. So do not hand over a large deposit before the legal situation of the home has been checked.
Costs people forget
When you do the numbers, also think about what comes after: transferring the utilities, small repairs, furniture, painting, renovation, home insurance and community fees. If the home is on a development with a pool, gardens or other shared services, ask what the community fee is. It is just as important to know whether the community has approved any special levies. The notaries recommend checking both the community fees and any charges on the home before you buy.
A simple example
Imagine a resale home listed at €180,000. The buyer should not think only, "I need €180,000." They should add the tax that applies, the notary, the Registry and, if there is one, the mortgage valuation or the gestoría.
Before fixing the tax, you would also need to check the home's reference value and whether the buyer qualifies for a reduced rate. A purchase that looks simple on paper can change quite a lot with personal circumstances.
How much should you set aside on top of the price?
There is no single figure that works for every buyer. It depends mainly on:
- Whether the home is new or resale
- The purchase price
- The tax reference value
- Whether it will be your main home
- Your personal situation
- Whether you need a mortgage
- The professional services you use
So before you sign a reservation, do a full calculation. It avoids a very unpleasant moment: finding the perfect home and then discovering you do not have enough money for the taxes and costs.
Buying safely
Buying a home can be one of the biggest financial decisions of your life. It is not only about finding a beautiful home. You also need to check the documents, the registry situation, any charges, the community, the taxes, the finance and every cost involved. Good advice along the way helps you see problems coming and tells you from the start what the purchase will really cost.
At Grupo Torremar we can help you find a home that fits what you need and stay with you through the purchase, whether you want to live here all year, a second home or a place close to the sea, in Torrevieja and the towns around it.
First published in Spanish on 24 September 2026. Figures and rates are as they stood on that date; rules change, so check them for your own case.