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What Buyers Need to Know
Big news for anyone considering buying a home in Spain’s Valencian Community: the regional government has announced a reduction in Property Transfer Tax (ITP) from 10% to 9%, effective from 1 June 2026 for most resale property purchases.
This change applies across the entire Valencian Community, including the provinces of Alicante, Valencia and Castellón. For buyers looking in popular areas such as the Costa Blanca, Torrevieja, Orihuela Costa, Jávea, Moraira, Benidorm, Denia, or Valencia City, this means lower purchase costs and potentially thousands of euros in savings.
For international buyers purchasing a holiday home, investment property, or permanent residence in Spain, this is welcome news.
What Is Property Transfer Tax (ITP)?
When buying a resale (second-hand) property in Spain, buyers pay a tax called Impuesto de Transmisiones Patrimoniales (ITP), also known as Property Transfer Tax.
Until now, the standard ITP rate in the Valencian Community has been 10% of the purchase price. From 1 June 2026, that rate will reduce to 9% for properties valued up to €1 million.
Properties above €1 million will continue to be taxed at 11%.
Does This Apply to New Build Properties?
Not exactly.
The reduced 9% rate applies to resale properties only. New build homes in Spain are subject to 10% VAT (IVA) rather than ITP.
However, there is also a slight reduction in Stamp Duty (AJD) in the Valencian Community, falling from 1.5% to 1.4%, which may slightly reduce costs for some new build buyers.
Timing Matters
One important detail buyers should know: the lower tax rate only applies to purchases completed from 1 June 2026 onwards.
This means that if you complete the property purchase and sign at the notary before this date, the current 10% rate will still apply. Buyers planning a purchase in the Valencian Community may wish to factor this timing into their plans.
Why This Is Good News for Property Buyers in the Valencian Community
The Valencian Community continues to be one of Spain’s most popular destinations for overseas property buyers thanks to its climate, beaches, golf courses, lifestyle, healthcare, and excellent transport links.
The reduction in ITP makes buying property even more attractive by:
- Lowering upfront purchase costs
- Improving affordability for buyers
- Increasing the appeal of property investment in the region
- Offering better value compared with some Spanish regions with higher purchase taxes
For buyers considering the Costa Blanca, Costa Valencia, or inland towns, this reduction could make a meaningful difference to the overall cost of purchasing a property.
Thinking About Buying Property in the Valencian Community?
Whether you’re looking for a holiday home, investment property, or permanent move to Spain, understanding the costs of buying property is essential.
With the new 9% purchase tax from June 2026, buyers could save thousands of euros on resale properties across the Valencian Community, including Alicante, Valencia, and Castellón.
If you’re considering buying in the region, now is a great time to start planning so you’re ready to take advantage of the lower tax rate.
