Upgrading from Old Villa to Modern Apartment

The most common mistake is starting to view new properties before understanding what the sale will actually leave you with. Two costs catch people off guard every time.

National capital gains tax for non-residents is 19% on the profit — the difference between what you paid and what you sell for, adjusted for costs and improvements. On a villa bought for €180,000 and sold for €340,000, you're looking at roughly €30,000 in tax before anything else.

Plusvalia is a separate municipal tax on the increase in the land value since your last purchase. The amount depends on the municipality and how long you've owned the property, but it can add several thousand euros more. Some owners discover this bill only at the notary table.

Spanish banks typically lend 60–70% of the purchase price to non-residents. That means for a €280,000 apartment, you need €84,000–€112,000 in cash for the down payment alone, plus roughly 10–12% for buying costs (transfer tax, notary, legal fees). Your net proceeds from the old property sale need to cover all of that.

The right order is: speak to a real estate agent to understand what your current property is realistically worth, then speak to a tax adviser or lawyer to calculate your exact tax liability. Do this before you arrange a single viewing. You need to know your actual available budget — not a rough guess.

Use our selling costs calculator to estimate net proceeds, and our buying costs calculator to understand total acquisition costs on the new property.

The safest approach is to complete the old sale before committing to a new purchase. Owning both simultaneously creates cash-flow pressure — you're paying community fees, utilities, and possibly mortgages on two properties at once, while one is empty.

If you can manage a few months without a Spanish property (renting locally or staying elsewhere during your visits), that window gives you full flexibility to wait for the right new property rather than rushing because the bills on both are mounting.

Start the sales process early. Don't wait until you've found the apartment you want before listing the villa. By then, you've already lost two to four months. The property you want may be gone — or you'll feel pressured to accept a lower offer on the old property to make the timeline work.

Read more in our property selling process guide and the step-by-step buying guide.

Not every area on Costa Blanca makes sense for this kind of upgrade. La Zenia and the broader Orihuela Costa area are a strong fit for several practical reasons.

Tourist licences are widely available in resort-zoned developments here — unlike older residential urbanisations further inland or in towns where new licences are essentially frozen. If rental income is part of your plan (even occasionally), this matters a lot.

The area has consistent activity through most of the year, not just July and August. Torrevieja and La Zenia have year-round residents, medical facilities, supermarkets, and restaurants — enough infrastructure to make off-season occupation genuinely comfortable. That expands your rental window and makes the property more useful if you're visiting in winter.

New build and recently completed developments are active across the area. That means more choice, better specifications, and properties that should appreciate more than older resale stock. Community management in newer complexes also tends to be better organised, with proper sinking funds and maintained accounts.

Property management services are well-established here. Dozens of agencies handle key-holding, check-ins, cleaning, and maintenance. Setting up remote ownership after the purchase typically takes a few phone calls.

Read the full case for buying in Spain, or see our rental property guide if income is part of your thinking.