Affordable Property Investment in Alicante & Costa Blanca: Torrevieja and Orihuela Costa

Why the Alicante Coast Remains an Attractive Low‑Cost Investment

The province of Alicante, part of Spain’s famed Costa Blanca, has long been a magnet for European buyers seeking sunshine, sea views and a relaxed lifestyle at a reasonable price. Even after the Golden Visa programme was abolished on 3 April 2025, the region continues to offer solid capital appreciation potential and strong short‑term rental demand.

Two towns stand out for value‑oriented investors: Torrevieja, a former salt‑mining hub turned tourist hotspot, and Orihuela Costa, a stretch of beachfront villages with modern developments. Both benefit from excellent transport links (Alicante–Elche Airport is 45 km away) and the EU/Schengen freedom that makes travel effortless for non‑Spanish owners.

Spotlight on Torrevieja: Budget Prices, Good Yields

Torrevieja’s property market still reflects its reputation as a “budget beach town”. As of Q2 2024 the average price for a second‑hand apartment is around €1,650 per square metre. New builds in gated communities are priced slightly higher, typically €1,850–€2,000/m².

Typical investment examples:

• Two‑bedroom resale flat (80 m²) – €132,000
• New three‑bedroom apartment (110 m²) with sea view – €210,000

The rental market is buoyant thanks to a steady flow of tourists from the UK, Germany and Scandinavia. Average short‑term rents sit at €9–€11 per night for a two‑bedroom unit, translating into an estimated gross yield of 6–7% when occupancy reaches 70%.

Spotlight on Orihuela Costa: Modern Developments, Higher Upside

Orihuela Costa is known for its newer residential complexes and a slightly more upscale vibe. Prices are higher than Torrevieja but still attractive compared with the Balearic Islands or the French Riviera.

• Resale apartment (70 m²) – €150,000 (€2,140/m²)
• New beachfront penthouse (120 m²) – €280,000 (€2,330/m²)

Short‑term rentals command €12–€14 per night for a two‑bedroom unit. Assuming a 65% occupancy rate, gross yields of 5.5%–6.5% are realistic.

Comparative Snapshot

Metric	Torrevieja	Orihuela Costa
Average price (resale) €/m²	€1,650	€2,140
New‑build price €/m²	€1,900	€2,300
Typical 2‑bedroom cost	€130k–€210k	€150k–€280k
Average nightly rent (short‑term)	€9–€11	€12–€14
Estimated gross yield	6%–7%	5.5%–6.5%

Purchase Costs and Taxes You Must Budget For

Foreign buyers enjoy the same freehold rights as Spaniards, provided they obtain a Spanish tax identification number (NIE). The main fiscal items are:

• Resale property transfer tax (Impuesto de Transmisiones Patrimoniales – ITP): 6%–10% of the purchase price, depending on the autonomous community and the buyer’s age.
• New‑build VAT (IVA): a flat 10% applied to the invoice amount, plus a 1.5% stamp duty (Actos Jurídicos Documentados).
• Notary and registry fees: typically 0.5%–1% of the price.
• Legal representation: €1,000‑€2,500 for a competent Spanish solicitor.

All costs together usually amount to roughly 10%–12% of the transaction value for resale deals and about 12%–14% for new builds.

Financing Options and Residency Pathways After the Golden Visa

Since the Golden Visa programme ended, investors must look at alternative routes to reside in Spain:

• Non‑lucrative residence visa: Requires proof of a minimum passive income of €28,800 per year (or €34,560 for a family). No work is permitted, but the visa can be renewed indefinitely.
• Digital‑nomad visa: Designed for remote workers earning at least €2,000 per month abroad. It grants a one‑year residence permit, renewable.

Both visas allow property ownership but do not depend on the purchase amount. Mortgage financing is available from Spanish banks to non‑residents, typically up to 60% of the appraised value for EU citizens and 50% for third‑country nationals.

Short‑Term Rental Licensing – What You Need to Know

If you plan to rent your apartment on platforms such as Airbnb or Booking.com, a regional tourist licence is mandatory. In the province of Alicante the process involves:

1. Submitting an application to the Diputación Provincial with proof of ownership and a compliance certificate from the building’s community.
2. Paying the annual licence fee (≈ €150‑€300 depending on capacity).
3. Registering each rental unit in the local police database before advertising online.

The licence is typically valid for five years and can be renewed. Failure to obtain it may result in hefty fines and forced closure of the listing.

Practical Steps to Secure Your Alicante Property

1. Get an NIE number: Required for any property transaction, banking or tax purpose. You can apply through a Spanish consulate or via a local gestor.
2. Define your budget including taxes and fees: Use the percentages above to calculate total cash needed.
3. Engage a reputable agency: Resida Global specialises in guiding foreign investors through the entire process, from property search to legal closing.
4. Conduct due diligence: Verify title deeds, community rules (especially regarding rentals), and any outstanding debts on the property.
5. Sign the private purchase contract (Contrato de Arras): Usually a 10% deposit is paid; this binds both parties while you arrange financing.
6. Complete the public deed (Escritura Pública) before a notary: Transfer of ownership is finalised here, after which the property is registered in your name.
7. Apply for any required rental licence and residence visa: Start these processes early as they can take several weeks.

Following these steps reduces risk and ensures a smooth entry into Spain’s property market.

Conclusion

Torrevieja and Orihuela Costa continue to deliver affordable entry points for investors seeking Mediterranean exposure, solid rental yields and the lifestyle benefits of living in an EU country. While the Golden Visa is no longer available, viable residency routes such as the non‑lucrative or digital‑nomad visas keep Spain accessible to long‑term foreign owners. With careful budgeting, proper licensing and a trusted partner like Resida Global, your Alicante investment can become both a profitable asset and a gateway to European living.

Frequently Asked Questions

Can non‑EU citizens buy freehold property in Alicante?

Yes. Foreign buyers obtain full freehold ownership once they have an NIE number. No citizenship restriction applies.

What taxes do I pay when buying a resale apartment in Torrevieja?

You will pay the regional transfer tax (ITP) between 6% and 10% of the purchase price, plus notary, registry and legal fees totaling around 10%–12% of the transaction.

Is a tourist licence required for short‑term rentals on Airbnb?

In Alicante province a regional tourist licence is mandatory. It involves an application to the Diputación Provincial, an annual fee and registration of each unit with local police.

What residency options exist after the Golden Visa was abolished?

You can apply for a non‑lucrative residence visa (minimum passive income €28,800/year) or a digital‑nomad visa (remote work earnings of at least €2,000/month). Both allow property ownership.

How does Resida Global help foreign investors?

Resida Global assists with finding suitable properties, obtaining an NIE, coordinating legal and tax advice, handling the purchase contract, and guiding you through residency and rental‑licence applications.