Good news for property buyers in the Valencia Region

If you are thinking of purchasing a Spanish property then you could be in luck. From June 1^st 2026 buying a home in the Valencia Region (Alicante, Valencia and Castellón) will be a little cheaper due to a reduction in property transfer tax and stamp duty.

When buying a property we all appreciate an opportunity to keep the additional costs as low as possible. So, we are happy to share the news that the Valencian Government has announced the reduction of some key taxes that will make your perfect property a little more affordable.

Property Transfer Tax (ITP)

ITP (Impuesto de Transmisiones Patrimoniales) is the tax you pay when buying an existing property. It doesn’t apply to new builds but, as the name implies, when a property transfers from one person to another. It is charged instead of the IVA (VAT) which is levied on new property.

Currently the ITP rate is 10% but from 1^st June 2026 it will be reduced to 9%. ITP is one of the largest additional costs when buying a resale property, so this reduction could make a significant difference to your budget.

For example, if your property costs €300,000 then the reduction in ITP would mean a saving to you of €3,000. A reduction that could well be used towards new furniture or home improvements.

Stamp Duty (AJD)

Stamp Duty (Impuesto sobre Actos Jurídicos Documentados) is paid on the purchase of a new property. Currently set at 1.5%, it is due to be lowered to 1.4% from June 2026. Although this might seem like a very small reduction, it does make a difference, particularly when it comes to higher-priced property.

These changes only apply to the Valencia Region. So if you are considering buying property in Alicante, Elche, Valencia, Benidorm, Orihuela or Torrevieja along with other towns in the vicinity then you can benefit. These tax changes apply equally to Spanish residents, EU citizens and non-EU buyers, regardless of nationality.

Tax rates and regulations can change and depend upon final approval and implementation. We strongly recommend that buyers check taxes and costs when they buy with a qualified legal professional.

Additional costs

As you plan your budget it is very important to factor in some other, additional costs. They do add up, even with the discount!

If you are buying a brand new property then you will need to consider:

IVA (Impuesto sobre el Valor Añadido). IVA (VAT) is currently set at 10% of the purchase price of the property.
AJD (Stamp Duty) as mentioned above, for property in Valencia, this will be reduced to 1.4% in June 2026.

If you are buying a resale property then factor in:

ITP (transfer tax) also reduced in Valencia from 10% to 9% from June 2026.

In addition, whether your property is resale or new, you will need to take account of the cost of legal fees and external costs such as the Spanish Notary and Spanish Land Registry.

The Notary charges are fixed by law within certain brackets and usually start at €900, depending on the property price. The cost of registration of your Spanish property at the Spanish Land Registry depends on the value of your property and usually starts at around €400.

We emphasise the continued importance of making sure that the transaction is completed by a qualified, professional and independent lawyer who represents your interests. We also strongly advise that they can communicate with you in your native language, unless you are a fluent Spanish speaker.

The lawyer you choose should provide you with a personalised quote without obligation. It should be an all-inclusive amount that covers all aspects of the purchase.

What this means for buyers in 2026

These changes in the Valencia Region are good news for the property market. Although already buoyant in 2025 and looking to continue healthy in 2026, we can expect demand for properties to increase even more with quicker turnaround of those for sale. Good news for buyers, sellers and estate agents.

If you are considering buying property in the Valencian Region, now is an excellent time to review your budget and seek professional advice before starting the process.

Oscar Paoli