The property transfer tax Valencia charges on resale property purchases dropped in June 2026. If you are buying in the region, you are now paying 9% instead of 10% on the purchase price. It is not a dramatic headline, but for anyone spending €200,000 or more on a home or investment, the saving is real and worth understanding.
This article explains what the ITP is, what changed and when, what it means for your total costs, and what the change says about Valencia as a place to buy property right now.
What Is the ITP?
The ITP (Impuesto de Transmisiones Patrimoniales, or Property Transfer Tax) is the main tax you pay when buying a resale property in Spain. It is paid by the buyer, calculated as a percentage of the purchase price, and goes to the regional government rather than the national government. That is why the rate varies across Spain: each autonomous community sets its own rate.
For new-build properties, the ITP does not apply. New builds are subject to VAT (IVA) at 10%, plus stamp duty (AJD) of 1.4% in the Comunitat Valenciana. For resale properties, it is the ITP that matters.
The Change: From 10% to 9%
The reduction was introduced through Ley 5/2025 de la Comunitat Valenciana and came into effect on 1 June 2026. The general ITP rate dropped from 10% to 9%. At 10%, the Comunitat Valenciana had one of the highest property transfer taxes in Spain — significantly above Madrid at 6% or Andalucia at 7%. The change is partly a competitive move: a deliberate effort by the regional government to make Valencia more attractive to buyers who might otherwise look elsewhere.
What This Means in Practice
In practice, I notice that a one-point tax reduction rarely changes how buyers feel about a purchase. Say “nine instead of ten percent” and most people nod without really registering it. Say “that’s €5,000 less on a €500,000 purchase” and the conversation shifts.
| Purchase price | ITP at 10% (before) | ITP at 9% (now) | Saving |
|---|---|---|---|
| €185,000 | €18,500 | €16,650 | €1,850 |
| €300,000 | €30,000 | €27,000 | €3,000 |
| €500,000 | €50,000 | €45,000 | €5,000 |
| €750,000 | €75,000 | €67,500 | €7,500 |
Reduced Rates for Specific Buyers
The general rate of 9% applies to most resale purchases. But reduced rates exist for certain buyer profiles:
Young buyers (under 35): A reduced rate of 8% applies if you are under 35 and the property will be your primary residence, subject to income limits.
Large families: Buyers who qualify as a familia numerosa under Spanish law can also access a reduced rate, provided the property is the primary home.
Buyers with disabilities: A reduced rate applies for buyers with an officially recognised disability of 33% or more.
These reductions are not automatic. They require the right documentation at the time of purchase and specific conditions to be met. If you think you might qualify, discuss it with your lawyer early in the process — not at the notary table.
For most international buyers purchasing as an investment: the applicable rate is the general rate of 9%. No conditions, no complications.
The Bottom Line
The ITP reduction from 10% to 9% is a modest but real saving for buyers in the Comunitat Valenciana. What I find more interesting is what it signals. The current regional government has pursued a consistent fiscal agenda since 2023: lower property transfer taxes, reduced inheritance tax, and a broader push to make the Comunitat Valenciana more competitive — not just compared to other Spanish regions, but in a European context where property taxes and cost of ownership have been going up almost everywhere.
For international buyers weighing up where to buy, that pattern matters. You are not just buying a property. You are buying into a region with a government that is actively trying to make ownership more attractive. That is a different starting point than many places in Europe right now.
The rate dropped on 1 June 2026. Prices in Valencia have been moving upward since. The moment where you benefit from both at once is now, not later.
Frequently Asked Questions
Does the ITP reduction apply to non-resident buyers?
Yes. The general rate of 9% applies to all buyers of resale property in the Comunitat Valenciana, regardless of residency. The reduced rates (8% for young buyers, special rates for large families) are tied to primary residence requirements and therefore do not apply to most non-resident purchasers. For international investors, the rate is 9%, full stop.
When did the new ITP rate take effect?
The reduction came into effect on 1 June 2026, under Ley 5/2025 de la Comunitat Valenciana. Any purchase completed at the notary on or after that date falls under the new rate.
What are the total buying costs in Valencia right now?
For a resale property, budget approximately 13 to 14% on top of the purchase price. This covers the ITP (9%), legal fees, notary costs, and buyer’s agent fees. The exact percentage depends on the purchase price and which services you use.
What is the AJD rate in Valencia in 2026?
The AJD stamp duty was reduced from 1.5% to 1.4% under the same legislation. It applies when a mortgage is registered at the notary. Cash buyers pay no AJD.