Spanish property real estate market. Alicante, Costa Blanca

  Are Property Purchase Taxes in Spain Abusive? A European Comparison and the Case for Reform Buying a property in Spain, especially as a first-time buyer, is a major financial undertaking. Many question whether the taxes related to a property purchase are excessive or even abusive, especially when compared to average incomes and conditions in other European countries. In this article, we break down the tax burden, compare it regionally and internationally, and examine whether current systems are sustainable for Spanish residents. Property Purchase Taxes in Spain: Are They Too High? In Spain, when purchasing a property, buyers are subject to several taxes: Transfer Tax (ITP) : 6%–10% on resale properties depending on the autonomous region. VAT (IVA) : 10% for new properties (plus 1.5% stamp duty). Stamp Duty (AJD) : 0.5%–2% depending on the region. These taxes significantly impact the total purchase cost. For example, in a region like Valencia, the ITP is set at 10%, which is among...

What is a Bridging Mortgage and When is it Worth Considering? In Spain’s fast-moving property market—particularly along the Costa Blanca—it’s common for homeowners to want to buy a new home before selling their current one. This is where a  bridging mortgage  (hipoteca puente) becomes a valuable solution. But what exactly is it, how does it work, and who can apply? What is a bridging mortgage? A  bridging mortgage  is a short- to medium-term loan that allows you to finance the purchase of a new home while still owning your current property. In essence, the bank advances the money needed for the new purchase, using both the existing and the new property as collateral. It’s called “bridging” because it acts as a financial bridge between selling your current home and buying the new one. When is it used? It’s typically requested when: You’ve found your ideal new home but haven’t sold the current one. You don’t want to lose a market opportunity due to lack of immediate fu...