Insikter/Valencia ITP Transfer Tax Drops to 9% in June 2026: Savings for Costa Blanca Buyers
Valencia ITP Transfer Tax Drops to 9% in June 2026: Savings for Costa Blanca Buyers

Legal & Tax · 7 min

Valencia ITP Transfer Tax Drops to 9% in June 2026: Savings for Costa Blanca Buyers

10 June 2026 · Hansson & Hertzell

The Valencian Community reduced its ITP property transfer tax from 10% to 9% in June 2026. For a €250,000 resale purchase, that's €2,500 in immediate savings. Here's what the change means, who qualifies, and how it affects buyers on the Costa Blanca.

The Generalitat Valenciana reduced the standard ITP (Impuesto de Transmisiones Patrimoniales) rate on residential property transfers from 10% to 9%, effective June 2026. This is the regional transfer tax paid on resale property purchases in the Valencian Community — which covers the majority of the Costa Blanca, including Alicante province and Valencia province.

The reduction was passed as part of the regional government's broader tax reform package aimed at improving housing affordability and stimulating property transactions after a period of high rates suppressing volume.

Who Benefits and By How Much

The ITP reduction applies to all resale property purchases in the Valencian Community — Spanish residents and non-residents alike. Foreign buyers (British, Swedish, German, Dutch) purchasing resale property on the Costa Blanca benefit from the lower rate without any residency requirement.

Savings by purchase price:

| Purchase Price | Old Tax (10%) | New Tax (9%) | Saving | |----------------|---------------|--------------|--------| | €150,000 | €15,000 | €13,500 | €1,500 | | €200,000 | €20,000 | €18,000 | €2,000 | | €250,000 | €25,000 | €22,500 | €2,500 | | €350,000 | €35,000 | €31,500 | €3,500 | | €500,000 | €50,000 | €45,000 | €5,000 |

For context: the average resale property transaction on the Costa Blanca in 2026 is approximately €230,000 — putting the typical ITP saving at approximately €2,300 per purchase.

Does This Apply to New Build? (Short Answer: No)

ITP applies to resale property purchases only. New build purchases are subject to IVA (VAT) at 10% — a national rate set by the central government, not the regional government. The Valencia ITP cut does not affect new build buyers.

This creates an interesting comparison: resale buyers in the Valencian Community now pay 9% ITP, while new build buyers pay 10% IVA. Before this change, both were at 10% (with ITP slightly more onerous in practice because it applied to the declared transaction price, which could be challenged by the tax authority).

Other Reduced ITP Rates in Valencia

The Valencian Community also maintains preferential ITP rates for specific buyer categories — these were not changed by the June 2026 reform but remain in effect:

  • Young buyers (under 35): 8% ITP for first home purchases up to €180,000 (previous rate; confirm current threshold)
  • Large families (família nombrosa): Reduced rate available; conditions apply
  • Disabled persons: Reduced rate available; conditions apply
  • Rural properties: Standard rural rate applies; different from urban residential

For most British and Swedish buyers on the Costa Blanca (typically second home or investment purchases, not first home), the standard 9% rate applies.

How ITP Is Calculated — and One Thing to Watch

ITP is calculated on the higher of two figures: the declared sale price, or the Valor de Referencia (Reference Value) determined by the Catastro (land registry). Since 2022, the Catastro has been publishing reference values for most properties in Spain — and the Valencian tax authority uses these as the minimum taxable base.

In practice, this means:

  • If you buy a property for €180,000 but the Catastro reference value is €210,000, you pay ITP on €210,000 — not the purchase price.
  • Your Spanish solicitor (abogado) should always check the Valor de Referencia before exchange to avoid an unexpected tax bill.

The 9% rate applies to whichever figure is higher. The lower rate is a straight saving on the existing calculation methodology.

Costa del Sol and Costa Cálida: Different Rates Apply

The ITP reduction to 9% is specific to the Valencian Community. If you're purchasing on the Costa del Sol (Andalucia) or the Costa Cálida (Murcia), different rates apply:

  • Andalucia (Costa del Sol): 7% ITP — already lower than the Valencian Community
  • Murcia (Costa Cálida): 8% ITP — also lower than Valencia's new rate

The Valencian Community's reduction brings it closer to (but not matching) Murcia and still above Andalucia. For buyers comparing locations across our three coasts, tax rates are now one factor in Andalucia's favour for resale purchases.

Timing: Act Before Any Reversal

Regional tax rates in Spain are set by the Comunidad Autónoma and can be changed with future regional budget legislation. While there is no current indication of a reversal, buyers who have been on the fence about timing their Costa Blanca purchase now have an additional concrete reason to act — the ITP reduction is saving thousands of euros on every resale transaction that completes at the new 9% rate.

Frequently Asked Questions

When did Valencia's ITP rate change?
The Valencian Community reduced its standard residential ITP rate from 10% to 9% in June 2026, as part of a regional tax reform package.
How much does the ITP reduction save Costa Blanca buyers?
Savings depend on purchase price: approximately €1,500 on a €150,000 property, €2,500 on €250,000, and €5,000 on €500,000. The typical Costa Blanca resale transaction (approximately €230,000) saves around €2,300.
Does the Valencia ITP cut affect new build purchases?
No. New build purchases pay IVA (VAT) at 10%, which is a national rate set by the central government, not the regional government. The ITP reduction applies to resale property purchases only.
Do foreign buyers (British, Swedish) qualify for the lower ITP rate?
Yes. The 9% rate applies to all resale purchases in the Valencian Community regardless of the buyer's nationality or residency status. No special qualification is required.
How does Valencia's ITP compare to other Spanish regions?
Andalucia (Costa del Sol) charges 7% ITP — still lower than Valencia's new 9%. Murcia (Costa Cálida) charges 8% ITP. So buyers comparing across our three coasts should note that Andalucia and Murcia remain cheaper on resale transfer tax.
What is the Valor de Referencia and how does it affect ITP?
The Valor de Referencia is the Catastro's official reference value for each property, used as the minimum taxable base for ITP since 2022. If the declared sale price is below this value, ITP is calculated on the higher reference value. Your Spanish solicitor should always check this before exchange.
ITPtransfer taxvalenciacosta blancaresale propertyproperty taxes spain2026