What Is Included in Property Prices in Spain: Benidorm and the Costa Blanca Coast

Benidorm and other resort towns on the Costa Blanca form a market where properties are purchased both for personal use and for long-term or tourist rentals. However, the Spanish model differs significantly from Bali or the Maldives: completed interior finishes do not necessarily mean that an apartment is fully equipped for living in or renting out.

Taxes, transaction costs, furniture, annual maintenance of the complex and the possibility of obtaining a tourist rental permit must be considered separately.

What Is Usually Included in the Price

In new developments in Benidorm, Alicante, Finestrat, Calpe and other Costa Blanca towns, properties are generally handed over with completed interior finishes.

Depending on the project, the price may include:

• a completed building structure;
• flooring and painted walls;
• interior and entrance doors;
• fitted bathrooms;
• kitchen cabinetry;
• built-in wardrobes;
• air conditioning or pre-installation for it;
• basic lighting;
• a terrace or balcony;
• a parking space and storage room — if provided for in the project;
• access to a pool, garden, gym and other communal areas.

However, the specifications can vary significantly. One project may already include appliances, air conditioning units and lighting, while another provides only kitchen cabinetry and utility connections.

Before signing the contract, it is therefore necessary to check the memoria de calidades — a document specifying the exact finishes, materials and equipment.

Are Furniture and Appliances Included?

In most new developments in Spain, furniture, textiles and decor are not included in the base price.

After receiving the keys, the buyer may need:

• beds and mattresses;
• sofas, tables and chairs;
• a refrigerator, oven and dishwasher;
• a washing machine;
• a television;
• light fixtures;
• curtains;
• tableware and textiles;
• terrace furniture;
• decorative items.

Some developers offer furniture packages for an additional fee. The market also includes investment apartments sold fully equipped.

The label furnished does not always mean that the property is fully ready for tourist rentals. Check whether the package includes everything guests need, as well as who is responsible for delivery, installation and warranty service.

Who Manages the Complex?

In Spanish residential complexes, the comunidad de propietarios — the owners’ association — is responsible for maintaining communal areas.

It arranges:

• cleaning of communal areas;
• pool maintenance;
• garden care;
• lift maintenance;
• lighting of the grounds;
• security or concierge services;
• repairs to communal property.

Owners regularly pay comunidad fees — contributions towards maintaining the complex. The amount depends on the property's floor area, the amenities and the budget of the particular building.

However, the owners’ association does not handle renting out the apartment. Finding tenants, check-ins, cleaning and communication with guests require a separate contract with a property management company or agency.

Are There Restrictions on Owner Occupancy?

In a conventional apartment or villa, the owner can live without restrictions, use the property for holidays or rent it out long-term.

Different conditions may apply in:

• aparthotels;
• serviced residences;
• projects with guaranteed returns;
• properties with a single tourism operator;
• rental pool programmes.

In these formats, the contract may stipulate a specific number of days for personal stays, mandatory advance reservations or restrictions on using the apartment during peak season.

It is therefore important to distinguish ordinary residential property from a tourist accommodation unit entrusted to an operator as part of a hotel business.

What You Need to Know About Tourist Rentals in Benidorm

Benidorm is located in the Valencian Community, so tourist rentals are governed not only by Spain’s general laws but also by regional and municipal rules.

Simply owning an apartment does not automatically mean that it can be rented out by the day. Before buying, check:

• whether tourist use is permitted in the building;
• whether it is prohibited by the statutes or a decision of the owners’ association;
• whether the property complies with urban planning requirements;
• whether the necessary permit and registration can be obtained;
• whether the property has its own registration number;
• whether it meets technical and operational requirements;
• who will handle guest registration and reporting.

Tourist rental rules in Spain are changing and becoming stricter. The existence of a tourist licence or the actual possibility of obtaining one must therefore be confirmed before the transaction, rather than relying solely on the seller’s word.

This is crucial for investors: if the financial model is based on daily rentals but the property can only be rented out long-term, the expected return will change significantly.

Which Costs Are Paid Separately?

The price in the developer’s price list is not the final purchase budget.

For a new-build property, separate costs may include:

• VAT;
• stamp duty on the transaction;
• notary services;
• registration of ownership;
• legal support;
• mortgage arrangement costs, if a mortgage is used;
• furniture and appliances;
• utility connections;
• a technical handover inspection of the apartment.

When buying a resale property, property transfer tax is paid instead of VAT. Rates depend on the autonomous community, property type and the buyer’s circumstances, so they should be checked immediately before the transaction.

Recurring costs after purchase may include:

• comunidad fees;
• municipal property tax, IBI;
• waste collection;
• insurance;
• utility bills;
• maintenance;
• the property management company’s commission;
• taxes on rental income.

Who Handles Renting Out the Property?

On the Costa Blanca, owners generally choose their own management model.

This may involve:

• renting out the property independently;
• long-term rental through an agency;
• seasonal rental;
• tourist rental management with listings on Booking and Airbnb;
• entrusting the unit to a hotel operator.

A property management company can handle advertising, bookings, guest check-ins, cleaning, repairs and financial reporting. However, its services are usually not included in the property price and are paid for separately.

Before signing a contract, check the commission rate, the list of services, cleaning costs, payment arrangements and the options for terminating the contract.

How to Calculate Returns Correctly

The investment model should be based on the total amount invested.

The initial investment budget should include:

• the property price;
• taxes and transaction costs;
• legal support;
• furniture and appliances;
• utility connections;
• preparing the property for rental.

Annual expenses should account for:

• comunidad fees;
• IBI and other local charges;
• insurance;
• utilities;
• management;
• cleaning and repairs;
• income taxes;
• seasonality and possible vacancy periods.

For Benidorm, it is also important to separate long-term rental forecasts from tourist rental forecasts. These are two different models with different levels of income, costs, occupancy and legal requirements.

Conclusion

In Benidorm and on the Costa Blanca, new properties are usually handed over with completed finishes, a kitchen, bathrooms and the main building systems. However, furniture, appliances, decor and fully preparing the property for rental are often paid for separately.

Managing the complex’s communal areas does not mean managing the apartment’s rental. To rent out the property, the owner independently chooses an agency or property management company.

The most important step for an investor is to check the full specifications, additional taxes and costs, the amount of comunidad fees and the legal possibility of tourist rentals before buying. These factors determine the final budget and the actual net return.

In the next article, we will explain what is included in property prices in other international markets and how their management models differ.

About the Authors

Vladyslava Kravchenko and Volodymyr Kharlov are co-founders of NESTRA REAL ESTATE GROUP and the team behind the Nestra Insights analytics platform.

They work with international investment property, analysing rental economics, development risks, property capitalisation and investment exit strategies.