Property Purchase Tax in the Valencia Region Will Decrease in 2026 🏡💰
Buying a resale property in the Valencia Region will soon become slightly more affordable. From June 1st, 2026, the regional government will reduce the Property Transfer Tax (ITP – Impuesto de Transmisiones Patrimoniales) from 10% to 9% for most property purchases. This change forms part of Law 5/2025, a fiscal reform designed to make housing more accessible and encourage investment in the region.
For many buyers — especially international clients looking to purchase property on the Costa Blanca 🌴 — this reduction can represent a significant saving when completing a property purchase.
When buying a second-hand property in Spain, the buyer must pay the Property Transfer Tax, commonly known as ITP. This tax applies to resale homes and is calculated as a percentage of the purchase price. New build properties are different, as they are subject to VAT instead of ITP, something many international buyers discover during the purchase process.
Until now, the general ITP rate in the Valencia Region has been 10% of the property price. However, starting in June 2026 the rate will be reduced to 9% for properties valued at up to one million euros 💶. This means buyers purchasing a home within this price range will pay less tax at the moment of purchase.
To understand the impact, imagine buying a property priced at €250,000. Under the current rules, the buyer would pay €25,000 in transfer tax. With the new 9% rate, the tax would drop to €22,500, representing a saving of €2,500 💡. For higher-value properties, the savings can be even greater, making the reform particularly interesting for buyers considering property investment.
The reform also introduces a different tax rate for properties considered luxury real estate. Homes with a value above €1,000,000 will continue to be taxed at a higher rate of 11%, meaning the reduction mainly benefits buyers in the mid-range property market. Even so, the Valencia Region remains one of the most attractive places in Spain to purchase a home, thanks to its lifestyle, climate and strong international community ☀️🏡.
Another small but relevant change affects the AJD tax (Actos Jurídicos Documentados), a stamp duty often linked to mortgage deeds and certain notarial documents. This tax will also be slightly reduced, decreasing from 1.5% to 1.4%. Although the difference may appear minor, it can still represent additional savings in larger property transactions 📄.
The Valencia Region will also maintain several reduced tax rates that already exist for specific groups of buyers. Young purchasers, large families, single-parent households and buyers with disabilities may still benefit from lower rates of 4% or 8%, depending on their circumstances and eligibility.
Timing can play an important role when planning a property purchase. The new tax rate will apply only to transactions completed from June 1st, 2026 onwards, while purchases finalized before that date will still be subject to the current 10% rate 📅. Buyers who are planning their move or investment may therefore wish to take this change into account when deciding when to complete the purchase.
Overall, this reform is part of a broader strategy aimed at making the Valencia Region more attractive for property investment while helping residents and international buyers access housing more easily. Lower purchase costs can encourage activity in the real estate market and strengthen the appeal of destinations such as the Costa Blanca, which continues to attract buyers from across Europe 🌍.
💚 If you are considering buying a home in the Valencia Region or the Costa Blanca, this upcoming tax reduction could help lower the overall cost of your purchase.
At Casas Connect, we help international buyers find the right property and guide them through every step of the buying process 🤝.
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