5 things to consider before buying in Alicante

With its Mediterranean climate, quality of life and affordable prices, Alicante attracts many French buyers every year. Whether you're looking to relocate, invest or buy a second home, this destination offers some great opportunities. But before you sign, it's crucial that you prepare your property plans properly. Here are the 5 essential points to consider.

1. Legal verification of the property (Due Diligence)

Before any purchase, a thorough check of the legal situation of the property is essential. This "due diligence" process helps to avoid unpleasant legal or financial surprises.

• Is the seller the legal owner of the property?
• Is the property free of debts, mortgages and co-ownership charges?
• Does it have the necessary planning permission and does it comply with local planning regulations?
• Do the details in the Property Register and Land Registry agree?

Tip: Call on the services of a lawyer specialising in real estate in Spain to ensure the security of this crucial stage.

2. Knowledge of the local market

The property market in Alicante varies greatly from one area to another. It is therefore important to be familiar with the local conditions before buying.

Alicante is made up of :

• Tourist areas: Playa de San Juan, Cabo de las Huertas
• Residential areas: Benalúa, Carolinas Altas/Bajas, Babel
• Attractive neighbouring communities: El Campello, San Vicente del Raspeig, Santa Pola

Prices per square metre, rental yields, seasonal demand and urban development projects can vary greatly from one area to another.

Tip: Analyse market data (via Idealista, Fotocasa or local agencies) and find out about forthcoming infrastructure projects.

3. Obtaining your NIE (Número de Identificación de Extranjero)

The NIE is an essential identification number for all administrative procedures in Spain. It is compulsory for :

• Sign the notarial deed of purchase of the property
• Open a Spanish bank account
• Pay taxes relating to the property

You can apply for an NIE in person at a police station in Spain or via the Spanish consulate in France.

To be expected: It can take from a few days to several weeks, depending on the time of year and the city.

4. Taxation and costs associated with the purchase

In addition to the purchase price of the property, you will need to factor in ancillary costs, which represent around 10-13% of the total amount:

• Transfer taxes (ITP): 10% for older homes in the Valencian Community.
• Notary and registration fees
• Solicitors' fees: generally 1% of the price of the property
• Bank charges: particularly in the case of loans or international transfers

For a new property, the costs are different: VAT (10%) + AJD (1.5%).

Good to know: These costs are largely incompressible, but can be factored into your overall budget.

5. Regulations governing tourist lettings

If you are planning to make a profit from your property via platforms such as Airbnb or Booking, you should be aware that tourist rentals in the Valencian Community are highly regulated.

You will need to :

• obtain a tourist rental licence (VT number) from the Generalitat Valenciana
• Comply with safety, hygiene and accessibility standards
• Check whether any restrictions apply in the area concerned (saturated areas, quotas, etc.)

Please note Certain buildings or districts may be refused a licence. Find out more before you buy.