The Government’s proposal to impose a surcharge on property purchases by non-EU buyers will have significant repercussions for Alicante’s real estate sector. The impact would be particularly severe in areas heavily reliant on residential tourism, such as Vega Baja. This region, a major economic driver for Alicante, includes the municipalities of Torrevieja and Orihuela, the two largest hubs for foreign property buyers in the province.
In Torrevieja alone, foreign buyers purchased 3,117 homes in the first half of 2024, according to data from the Notarial College of Valencia. This accounts for nearly 20% of the 15,919 total property sales recorded in the province during the same period.
To put this into perspective, international clients accounted for 82.7% of the real estate transactions in Torrevieja, based on figures from the Euroval appraiser.
Shifting Demographics: Poles Overtake Swedes
While Swedes have historically been the largest group of foreign buyers of property in Torrevieja, the war in Ukraine has shifted the trend. Poles now top the list, purchasing 598 homes between January and June 2024, compared to 288 by Swedish buyers. Ukrainians rank third, with 281 properties acquired.
Orihuela: A Complex Market
In Orihuela (and in particular on the Orihuela-Costa), foreigners represent an even higher percentage of the market, accounting for 85.9% of property transactions. In the first half of 2024, notaries recorded 2,354 sales involving international buyers. The British, despite Brexit, remain the most active group with 427 purchases, followed by Belgians (374) and Poles (218).
The proposed tax on non-EU buyers could disproportionately affect Orihuela-Costa’s real estate market, as British buyers—now considered non-EU—make up a significant portion of its clientele.
Alicante City: A Diverse Buyer Base
Beyond Vega Baja, the city of Alicante serves as another major hub for foreign property purchases, with 1,446 transactions in the first half of 2024. This represents around 40% of the local real estate market.
Unlike other areas, Alicante city attracts a more diverse group of international buyers. Algerians lead the list with 190 purchases, driven both by economic migration and affluent Algerians seeking a vacation home or a potential refuge. Other notable nationalities include Ukrainians (165), Italians (101), French (95), and Russians (92).
Other Key Destinations
The fourth most popular destination for foreign buyers is Benidorm, where 579 transactions were recorded. Although the proportion of foreign buyers is lower—44.7% of total sales—it remains a significant market, with Poles and Russians leading the demand.
Santa Pola ranks fifth, with foreigners purchasing half of all properties sold during the first six months of 2024, totalling 516 transactions. Poles were again the most prominent buyers.
Neighbouring Guardamar saw 471 properties bought by foreigners, primarily Belgians, while Calp (466 sales), Dénia (425), Elche (398), and Xàbia (369) also featured prominently.
A Booming Market
Overall, from January to June 2024, foreign buyers were involved in 15,919 property transactions in the province, a 1% increase compared to the previous year. The average transaction value was €186,489, reflecting the continued demand for real estate in Alicante, particularly among international clients.
