Complete Guide: Property Purchase, Sale, and Investment in Altea
Legal and Tax Assistance for Properties on the Northern Costa Blanca
Why Choose Altea
Altea is an outstanding town on the Northern Costa Blanca, known for its cultural charm, typical tourist center, and the exclusivity of areas like **Altea La Vella**, often compared to the “second Ibiza”. It is surrounded by spectacular hills with magnificent views and vibrant nature. It offers high-quality beaches such as L’Espigó, Cap Negret, Cap Blanc, L’Albir, Cala Barra Grande, and Cala del Metge.
Our office in **Calpe** legally covers the entire Altea area, which encompasses a wide range of properties: rustic homes, apartments, bungalows, urbanizations, and properties near Golf Courses.
Property Typology and Essential Legal Aspects
Legal due diligence is tailored to the specific urban planning characteristics of each area.
Consolidated Urban Areas (Center and Altea La Vella)
These areas include the town center and surrounding streets, consisting of primary residences for local citizens and residents, second homes, or holiday homes, traditionally owned by Spanish (Valencia, Madrid, Basque Country) and foreign residents (Central-Northern Europe).
Critical Points in the Purchase
- Construction History Study: It is vital to study whether the seller carried out works (extensions, covering of terraces, porch conversions) with the **appropriate licenses**. Lack of permits can result in fines or, most importantly, the refusal by the Town Hall to renew the **Certificate of Habitability**, causing issues with utility contracts.
- Water and Electricity Contracts: Since these are older properties, supply companies may ask the buyer to **update the installations** to change contracts after completion. Property inspection is necessary to calculate potential electrician or plumber fees and negotiate them in the commercial agreement.
- Plusvalia Tax (Municipal Capital Gains Tax): This tax is the **seller’s** responsibility. If the property is old and has been owned by the same person for a long time, the tax will be high. Prior knowledge allows the buyer to establish **guarantees** for its payment.
- Owners’ Community: It must be verified not only that the seller is up-to-date with payments but also whether there are **major extra payments (derramas)** or partial payments for reforms in common areas (façades, parking lots) which are not always reflected in standard certificates.
Urbanizations (Altea Hills, Cap Negret, Sierra Altea, etc.)
These are developments created during or before the Spanish “boom,” including complexes like Cap Negret, Cap Blanc, Altea Hills, Santa Clara, Alhama, Sierra Altea, and Montemolar.
Important Legal Aspects
- Perfect Registry Inscription: The property must be perfectly registered in the Land Registry as a **”completed house.”** This requires:
- Final Works License (Licencia de Final de Obra).
- Ten Year Insurance (Seguro Decenal, covering structural defects for 10 years).
- Certificate of Habitability.
- Common Areas and Regulations: It must be ensured that common areas (Golf Courses, pools, gardens) are **completed or in an advanced stage of execution**. It is crucial to **read the community rules** to know restrictions (neighbor running a business, pets) and the **high maintenance fees** these complexes usually have.
- Limitations and Rights of Use: Check if the property is affected by service infrastructure (electricity, water, sewage, rubbish collection).
- Urbanistic Consideration: In the case of **older urbanizations**, a **special and individualized urbanistic study** is required due to recent regulations affecting their status.
Properties in Rustic Areas and the Countryside
These areas require special considerations regarding territorial planning.
- Free of Urban Planning Affections: It is crucial to verify that the property is **FREE** of any urban planning actions or affections (road affections, electricity or water infrastructure, connection to sewage, or septic tank installation).
- Risk of Cession and Costs: As in some urbanizations, it is common for owners to have to **cede part of their plots** to widen roads or to **pay for urbanization infrastructures** (sewage connection, pedestrian areas).
Cross-Cutting Risks: Urban Charges and Obligations
One of the biggest legal precautions on the Northern Costa Blanca (including Altea) is the existence of pending costs and works to be borne by the owner.
- Pending Urbanization Charges: There are areas where the property may have outstanding urbanization costs and/or **urbanization works to be finished** (roads, pavement, connection to main sewage, water, electric) which must be assumed by the new owner.
- Certificate of Habitability: Even if properties were built with a license, complications may arise in obtaining the **renewal of the Certificate of Habitability** if the urbanization does not comply with modern standards. It must be verified that all the urbanization infrastructure is **completed**.
For more details, please visit our specialized section: Semi-Consolidated Urbanizations.
Key Documentation and Licenses in Altea
Certificate of Habitability and Occupation License
This is an essential document for purchase and accessing utilities.
- First Occupation License (Licencia de Primera Ocupación): This is the license granted by the Town Hall to **newly built** homes once construction is finished, confirming that they meet the habitability conditions of the project.
- Second or Subsequent Occupation License (Certificado de Habitabilidad): This is the document obtained for **resale** homes or those where time has passed since the first occupation. It confirms that the home continues to meet safety and habitability conditions.
- Responsible Declaration of Second Occupation (Declaración Responsable): This is a simplified procedure where the owner declares under their responsibility that the home meets the requirements to be inhabited, streamlining the certificate renewal process.
Here is the key contact information for the Altea Town Hall (Ayuntamiento de Altea) and relevant links for the procedure:
Altea Town Hall (Ayuntamiento de Altea)
Address: Plaça José María Planelles, 1, 03590 Altea, Alacant.
General Phone Number: 96 584 13 00
Urban Planning Department (Departamento de Urbanismo) Phone: This department is often reached through the main switchboard. It is highly recommended to call the main number and ask to be transferred to “Urbanismo” for specific inquiries regarding the Declaración Responsable de Segunda Ocupación.
Town Hall Website: www.altea.es
Procedure for Second Occupation (Declaración Responsable)
The process is typically managed through the Town Hall’s Electronic Headquarters (Sede Electrónica):
Access the Town Hall Website: Go to www.altea.es.
Navigate to Procedures: Look for the section labeled Sede Electrónica, Trámites, or Urbanismo.
Find the Form: Search for the official document titled “Declaración Responsable de Segunda o Posterior Ocupación”. This is the form you must fill out and submit with your technical certificate.
Since the technical certificate is mandatory, the fastest way to start is to first hire a local architect or technical architect. They are familiar with the current local regulations, have access to the specific forms and digital submission portals, and can handle the entire process on your behalf.
How to Obtain a Construction License in Altea
Any new construction or structural reform in Altea requires a municipal license. It is essential to hire a qualified professional to submit the project and required documents to the Town Hall.
To obtain a building license (Licencia de Obras) in Altea, you must go through the Urban Planning Department (Departamento de Urbanismo) of the Town Hall (Ayuntamiento).
The process varies significantly depending on the scale of the work, which dictates the type of license required:
Major Works (Obra Mayor): For new constructions, major extensions, changes in structural elements, or changes in the use of a building. This requires a full technical project signed by a qualified architect.
Minor Works (Obra Menor): For simpler renovations, redecorating, or non-structural changes. This often requires only simplified documentation (a technical report or declaration).
General Steps to Obtain a Major Works License (New Construction, Major Extension)
The process for major works is complex and always requires a qualified technical professional (Architect or Technical Architect) to manage the submission.
1. Hire a Professional to Draft the Technical Project
Your architect will prepare the comprehensive Technical Project (Proyecto Técnico), which is the core of your application. This includes:
Descriptive Report: Detailing the characteristics and purpose of the works.
Plans: Detailed plans, including site maps and their relation to the urban environment.
Specifications: Technical, general, and particular conditions for the work.
Measurements and Budget: Detailed cost breakdown (Presupuesto).
Health and Safety Study (Estudio de Seguridad y Salud).
Waste Management Study (Estudio de Gestión de Residuos).
Georeferenced Plan: Digital file showing the property’s pre- and post-construction boundaries.
2. Gather Administrative Documentation
You, or your architect on your behalf, will need to gather administrative documents:
Official Application Form: Filled out and addressed to the Altea Town Hall.
Proof of Tax Payment: Justification of payment for the administrative fees (Tasa administrativa) and the Tax on Constructions, Installations, and Works (ICIO). These are often self-assessed and paid through the SUMA office.
Title/Deed: Documentation proving ownership of the property.
3. Obtain Sectoral Authorizations (If Necessary)
Depending on the location and nature of the project, additional permits from other government bodies may be required before the Town Hall grants the license:
Cultural Heritage: If the property is in a protected area (e.g., near the historic center or designated protected buildings), authorization from the regional Ministry of Culture (Conselleria competente en materia de Cultura) may be mandatory.
Sectoral Regulations: Authorization from other bodies if the property is affected by:
Main roads (Carreteras).
Hydraulic public domain (Confederación Hidrográfica).
Coastline (Costas).
4. Submit the Application
The complete file (application form, technical project, and proof of payments/authorizations) is submitted to the Urban Planning Department of the Altea Town Hall, usually via the electronic headquarters (Sede Electrónica).
5. Review and Resolution
The Town Hall’s technical staff will review the project to ensure it fully complies with the General Plan of Urban Planning (Plan General de Ordenación Urbana – PGOU) of Altea.
If the project needs corrections, you will receive a notification (“requerimiento de subsanación”) to fix the deficiencies.
Once approved, the Building License is granted.
Important: Guarantee Deposit (Fianza)
Before you can start the works, you will usually be required to pay a guarantee deposit (Fianza) to ensure that any potential damage to public infrastructure (pavements, streets, lighting) during construction is repaired. This deposit is returned after the works are completed and public space is restored.
Given the complexity and the requirement for technical plans, your first step should always be to consult with an experienced local architect or lawyer specializing in urban planning in Altea.
Public Services and Utilities
Water, Electricity, and Gas Supply
- Water Supply: Connection is made to the municipal network.
- Electricity and Gas Supply: The buyer must choose a provider from those operating in the area.
- Steps: Obtain the Installation Certificate, apply for the supply, and formalize the contract.
Additional Installations
- Solar Panels: Generally permitted, but require compliance with local urban planning regulations and obtaining the necessary licenses from the Town Hall.
- Septic Tank: In rustic areas or those without a sewage connection, its installation must comply with the environmental and sanitary regulations of the Valencian Community, requiring the corresponding permit.
Purchase and Sale Process
Buying a House in Altea
General advice:
- Hire a Qualified Local Attorney: Essential for conducting **Legal Searches** on the property, verifying its legal and urban status, and ensuring all contracts are correct.
- Do Not Sign the Deposit Agreement (Contrato de Arras): **DO NOT SIGN THE DEPOSIT AGREEMENT WITHOUT THE PRIOR CONSENT OF YOUR ATTORNEY**. This document is legally binding and establishes the conditions of the purchase.
- Legal Check: Review the legality of the property, urban compliance, and its status in the Land Registry and Cadastre.
- Costs and Expenses: Plan for additional costs (taxes, notary, registry fees).
- NIE and Post-Purchase: Obtain the Foreigner Identity Number (NIE) and carry out post-completion procedures (utility changes, tax payments).
Selling a House in Altea
Costs and taxes payable when selling include:
- Capital Gains Tax (State): Applied to the profit made from the sale.
- Municipal Capital Gains (Plusvalía): Tax on the Increase in the Value of Urban Land.
- Non-Resident Income Tax (IRNR) Withholding: If you are a non-resident, the buyer will withhold 3% of the sale price to cover your tax obligations.
- Mortgage Cancellation Fees, Energy Efficiency Certificate (EPC), and Fees (Real Estate Agent, Notary, Lawyer).
Offices, Registries, and Services of Interest
Despite the proximity, some key offices may be located in Alicante city or nearby towns like Calpe or La Nucía.
- Cadastral Office and Cadastral Value: The cadastral value is the basis for calculating IBI and other taxes.
- Property Registry Office in Altea
- Bar Associations: The profession is regulated through the Alicante Bar Association.
- Notary Services: Notaria Beatriz Azpitarte Melero
Immigration and Consular Representation
The main Immigration offices and most Consulates/Embassies are located in Alicante city, although some may have honorary representation in the area:
- Consulates: United Kingdom, Netherlands, Germany, Sweden, Norway, Denmark, Finland, Belgium, France, Ireland, Italy, Luxembourg, Ecuador, Dominican Republic. (Example: Norwegian Honorary Consulate in La Nucía).