Great News for Property Buyers in the Valencian Community!
If you are thinking about buying a property on the beautiful Costa Blanca or in the vibrant city of Valencia, there is fantastic news. The regional government has approved a permanent tax cut that directly reduces the cost of buying resale properties.
Starting June 1, 2026, the general rate of the Property Transfer Tax (Impuesto sobre Transmisiones Patrimoniales – ITP) will officially drop from 10% to 9%. Additionally, the Stamp Duty (AJD) for new-build properties will slightly decrease from 1.5% to 1.4%.
What does this mean for your budget?
A one-percentage-point drop might sound modest, but it translates into thousands of euros in direct savings. Look at how much you can save on a resale property:
| Purchase Price | Previous ITP (10%) | New ITP (9%) | Your Savings |
|---|---|---|---|
| 250.000 € | 25.000 € | 22.500 € | 2.500 € |
| 500.000 € | 50.000 € | 45.000 € | 5.000 € |
⚠️ Key Takeaway: The tax rate applied depends strictly on the date you sign the deed at the notary (Escritura), not when you sign the reservation contract. Please note that this 9% rate applies to properties valued under €1 million (properties above this threshold remain at 11%). Special reduced rates also remain in place for young buyers under 35 and large families.
There has never been a better time to invest in your dream home under the Spanish sun!
