Hidden Costs of Buying a Villa in Cabo Roig (2026 Breakdown)

The purchase price is just the beginning. We break down every tax, notary fee, land registry charge, community fee and hidden cost you'll face buying a villa in Cabo Roig, Orihuela Costa — with 2026 ITP rates for Alicante province. From Torrevieja property lawyers since 1976.

Cabo Roig is one of the most sought-after coastal areas on the southern Costa Blanca. Its proximity to pristine beaches, the popular Cabo Roig strip with its restaurants and bars, and the well-maintained residential urbanisations make it a top choice for British, Scandinavian and Northern European buyers looking for a holiday home or permanent residence in Spain.

But if you have found your dream villa and agreed a purchase price, you need to know that the price on the contract is only part of the story. There are significant additional costs that can add 12–15% or more to the final amount you will pay. Understanding these costs upfront is essential to avoid unpleasant surprises at completion.

Transfer Tax (ITP) — The Biggest Additional Cost

If you are buying a resale property (second-hand), you will pay Transfer Tax (*Impuesto de Transmisiones Patrimoniales*, ITP) instead of VAT. In the Valencian Community, the ITP rate is 10% of the purchase price declared in the escritura (title deed).

For a villa priced at €350,000, this means €35,000 in transfer tax alone.

Important: The Valencian tax authority (*Agencia Tributaria Valenciana*) uses reference values (*valores de referencia*) set by the Cadastre to check whether the declared price is below the minimum taxable value. If you declare a price below the reference value, the tax authority may issue a complementary assessment demanding additional tax plus interest.

VAT and Stamp Duty on New Builds

If you are buying a new-build villa directly from a developer, you will pay:

  • VAT (*IVA*) at 10% of the purchase price
  • Stamp Duty (*Actos Jurídicos Documentados*, AJD) at 1.5% in the Valencian Community

This combination (11.5%) is slightly higher than the 10% ITP on resale properties. For a €400,000 new-build villa in Cabo Roig, the total tax bill would be €46,000.

Notary Fees

The notary (*notario*) formalises the public deed of sale (*escritura pública*). Notary fees are regulated by law and depend on the property price, the number of pages in the deed, and the complexity of the transaction.