One fact surprised me when I started in this sector over a decade ago: 70% of my international clients who bought in Orihuela Costa ended up recommending the area to family and friends. It’s no coincidence that this stretch of the Southern Costa Blanca has become the go-to sanctuary for thousands of Europeans seeking their ideal second home.
Having managed hundreds of real estate transactions in this area, I can confidently say that Orihuela Costa offers a unique combination: 15 kilometers of Blue Flag beaches, a Mediterranean climate with over 300 days of sunshine a year, and an infrastructure designed for year-round residents, not just summer tourists.
Why Orihuela Costa Stands Out
Most buyers arrive here after visiting other areas of the Costa Blanca. What they find is different.
Orihuela Costa is a coastal strip stretching from Punta Prima to Cabo Roig, passing through La Zenia, Villamartín, and Campoamor. Unlike more overcrowded destinations, the urbanizations here strike a balance between community life and privacy.
In my experience, what my clients value most is the “big village” feel. You have every service—from the Zenia Boulevard shopping center to world-class golf courses—while maintaining the tranquility you look for in a second home.
The current market reflects this demand. Villas range from €83,000 in areas like Los Almendros-La Florida to luxury properties exceeding €400,000 in Punta Prima. For high-end houses and apartments, the average price sits around €5,235/m².
Tax Advantages Your Advisors Might Not Explain Clearly
This is one of the areas that generates the most doubt among foreign buyers. Tax benefits in Orihuela Costa aren’t different from the rest of the Valencian Community, but there are specific nuances worth knowing.
As a non-resident, you will pay a Property Transfer Tax (ITP) of 10% for resale homes, or 10% VAT plus 1.5% AJD (Stamp Duty) for new builds. What many don’t realize is that for luxury properties over €400,000, you also need to factor in Wealth Tax (Impuesto sobre el Patrimonio).
| Concept | EU Non-Resident | Non-EU Non-Resident |
|---|---|---|
| ITP (Resale) | 10% | 10% |
| VAT (New Build) | 10% | 10% |
| AJD (Stamp Duty) | 1.5% | 1.5% |
| Capital Gains Withholding | 3% | 3% |
I always recommend that my clients be crystal clear on the tax laws of their home country. A post-Brexit Brit has different considerations than a German or French buyer.
What Foreign Owners Actually Experience Here
The data is great, but day-to-day reality is what truly matters. I’ve stayed in touch with many clients over the years, and their feedback is remarkably consistent.
- Common challenges: The initial language barrier and adapting to Spanish schedules (like shops closing from 14:00 to 17:00).
- Standout advantages: An active international community, residents’ associations, and a significantly lower cost of living compared to the UK or Nordic countries.
My top tips for new owners:
- Learn basic Spanish before you arrive.
- Connect with local expat WhatsApp groups for trusted trade recommendations.
- Hire a good property manager; the difference is worth hundreds of euros a year.
Brexit Changed the Game for Brits
As a non-EU resident now, a Brit can stay in Spain for a maximum of 90 days out of every 180 without a visa. This has shifted buying patterns. Many are now looking for properties specifically for holiday use, while others are applying for residency from the start. If you plan to stay longer, you must plan your residency status before you sign the deeds.
Tourist Rental Licenses: The Biggest Headache
Regulation in the Valencian Community is strict. To obtain a VTAR license (Tourist Rental Housing), you must meet specific requirements including urban compatibility certificates and technical inspections. Verify feasibility BEFORE you buy; don’t assume every property can be rented to tourists.
Real Maintenance and Management Costs
| Concept | Orihuela Costa | Costa del Sol | Costa Brava |
|---|---|---|---|
| Community Fees (Villa) | €800-€1,200/year | €1,000-€1,500/year | €900-€1,400/year |
| Property Tax (IBI) | €400-€800/year | €500-€1,000/year | €600-€1,100/year |
| Garden/Pool Maint. | €1,200-€2,000/year | €1,500-€2,500/year | €1,300-€2,200/year |
Resale versus New Build
Resale properties offer better immediate value for money (often 15-20% cheaper). New builds, while more expensive, offer 10-year structural warranties and Grade A energy efficiency. For a second home, I often recommend resale; for a long-term investment, new build is often smarter.
Frequently Asked Questions
Can I obtain a mortgage as a non-resident?
Yes. Spanish banks typically finance up to 70% for EU residents and 60% for non-EU residents. You will need to prove stable income in your home country.
Is the property market in Orihuela Costa secure?
The market is mature and stable. Expect sustainable growth of 2-4% annually. International demand keeps prices resilient compared to other regions.
What I’ve learned after years in this market is that there is no “one size fits all” answer. Orihuela Costa offers options for every budget—the key is honest planning.
For more information, check out our
12 tips to increase the value of your luxury villa or
5 tips to make your home more efficient.