New build la herrada properties currently range from €369,000 to €445,000 across the two projects analysed by veritySpain, which awarded the market an average score of 7.0 out of 10. La Herrada is a small residential area within the municipality of Los Montesinos, sitting in the southern Alicante province of Spain's Costa Blanca South. It attracts buyers priced out of established coastal towns such as Torrevieja or Guardamar del Segura but who still want proximity to the sea, the N-332 corridor, and Alicante-Elche airport. The buying process for international purchasers here follows standard Spanish legal procedure, with a handful of practical steps that reward preparation.

Legal groundwork before you sign anything

A Spanish NIE number (Número de Identificación de Extranjero) is the first requirement. Without it, no contract can be executed and no tax paid. Applications are processed at Spanish consulates abroad or at Policía Nacional offices in Spain; waiting times vary seasonally, so apply early. A Spanish bank account is equally non-negotiable: mortgage lenders, notaries, and tax offices all require payment via a domestic account. Registradores de España publishes an annual report on foreign buyer activity in coastal provinces, and Alicante consistently ranks among the highest-volume markets in the country for international transactions. Engage a bilingual lawyer independent of the developer before committing any funds. Their fee, typically a percentage of the purchase price, is minor compared to the cost of a poorly reviewed contract.

Reservation to private purchase contract

€3,000 to €10,000 is a typical reservation deposit for a new-build in this region, though the developer sets the figure. This sum secures the specific unit and takes it off the market. It is followed within weeks by the contrato de arras or the private purchase contract (CPA), at which point a further tranche of the agreed price becomes due. Staged payments are standard in Spanish off-plan sales: additional instalments fall on construction milestones such as groundwork completion or roof closure. Each payment must come from a bank-guaranteed account (aval bancario) held by the developer under Law 57/1968, as updated by Ley de Ordenación de la Edificación. Short deposits without guarantees should raise immediate concerns. Get the aval before transferring money.

Taxes and purchase costs

10% IVA (VAT) applies to all new residential properties in Spain, added to the agreed purchase price. Stamp Duty (Actos Jurídicos Documentados, AJD) is charged on top and varies by autonomous community; Valencia, which governs this part of Alicante province, sets the rate at 1.5% of the declared value. Notary fees, land registry fees, and legal costs together add a further one to two percentage points. Buyers should budget a total of 12% to 14% over the purchase price to cover all acquisition costs. Banco de España provides guidance on mortgage credit conditions and the costs associated with new mortgage formation in Spain, including the bank valuation fee that lenders require before approving finance.

From completion to keys

Escritura pública (the public deed of sale) is signed at a notary, with both buyer and seller or their legal representatives present. On that day the remaining balance is paid, typically by banker's draft. The notary registers the deed at the Registro de la Propiedad within days; until registration is confirmed, the buyer holds a nota simple as proof of ownership. Utility connections (water, electricity, and where available gas) are then arranged directly with suppliers, which requires the completed property's habitation certificate (licencia de primera ocupación). In a small, emerging market like La Herrada, timelines from reservation to keys on a new-build typically run between 18 and 30 months depending on construction stage at point of reservation.

Key takeaways

• Obtain your NIE number and Spanish bank account before signing any documents or paying deposits.
• veritySpain scores La Herrada projects at an average 7.0/10, with prices ranging €369,000 to €445,000.
• Bank guarantees protecting staged payments are legally required; verify the aval before each transfer.
• Budget 12%–14% above the purchase price to cover IVA, stamp duty, notary, and legal fees.
• Completion timelines of 18 to 30 months are typical for new-build off-plan projects in this area.