In Spain’s real estate market, the focus is on Valencian Community property tax news today. As of 1 June 2026, the Valencian Community has lowered the property transfer tax on resale homes to 9%. This adjustment targets one of the highest upfront costs in Spanish property transactions. It is also already influencing buying decisions across the Costa Blanca and the wider region.
The measure was approved through Law 5/2025 of 30 May, passed by the Cortes Valencianas and published in the official regional gazette at the end of the month. So, it is a structural tax change that is now in force.
Valencia’s Market-Oriented Tax Change with Direct Cost Impact
For many buyers, especially international purchasers, taxation is a core part of budgeting. Even a one-percent shift can change how comfortably a purchase fits within a financial plan. So, this reform introduces exactly that kind of adjustment. It reduces the entry cost for resale properties across one of Spain’s most active real estate markets.
As of 1 June 2026, the most relevant update is the reduction of the Property Transfer Tax (ITP in Spain) on resale properties from 10% to 9%, applied to homes valued up to €1,000,000.
Alongside this, the Stamp Duty (AJD) applied to notarial deeds, including mortgages, has been reduced from 1.5% to 1.4%. While smaller in scale, it still contributes to lowering total acquisition costs.
At the same time, the existing structure for higher-value homes remains unchanged. Properties above €1,000,000 continue to be taxed at 11% ITP in Valencia. It means the reform is focused primarily on mid-range and standard residential purchases.
There is also a key detail shaping real transactions: timing. The applicable tax rate is determined by the signing of the public deed (escritura pública) before a notary, not by reservation agreements or private contracts. In this case, the same property can fall under different tax rules depending on the completion date. Transactions completed before 1 June 2026 fall under the previous structure, while those completed after that date benefit from the reduced rates.
At this stage, the rules should be clear. So, if you’d like a more detailed explanation of how property taxation works in Spain, you can take a look at our related guide.
What the Reduced Property Purchase Tax in Valencia Means in Real Terms
The impact becomes clearer when applied to real purchase prices in the Valencian Community.
Now, let’s take a resale property valued at €300,000 for example to illustrate the change clearly:
- Tax payable with old rate (10% ITP): €30,000
- Tax payable with reduced rate (9% ITP): €27,000
- Direct saving: €3,000
Also, to make the effect more visible across different price levels, we can give additional values according to the new Valencian Community ITP property transfer tax rate.
- €500,000 property means a €5,000 saving
- €750,000 property means a €7,500 saving
- €1,000,000 property means a €10,000 saving
As prices increase, the absolute savings grow accordingly, which becomes more relevant in coastal areas where property values are higher and competition remains strong.
Who Can Benefit from the Reduced Taxes?
The main beneficiaries are buyers purchasing resale homes in the Valencian Community under €1,000,000 as of June 2026. International buyers purchasing holiday homes along the Costa Blanca are among the most directly affected group, as resale apartments and villas make up a large share of available listings in these areas.
Relocating families and retirees also benefit, as lower upfront costs make budgeting more manageable. Investors may also see improved initial yield calculations due to reduced acquisition expenses.
Key locations where resale stock is especially strong include Torrevieja, Orihuela Costa, Alicante, Ciudad Quesada, Rojales, and Benijófar, where the impact of the tax reduction is now visible in transaction planning.
Additionally, some buyers may qualify for additional reductions under existing regional rules. These include:
- Buyers under 35
- Large families
- People with recognised disabilities
Note: Luxury buyers purchasing above €1,000,000 remain outside the scope of the reduction, as the 11% rate continues to apply.
What to Do Now Under the Current Situation?
The signing date of the public deed still determines which tax rate applies, meaning completion scheduling remains relevant in specific transaction chains. So, you may prioritise securing the right property immediately, especially in competitive segments where demand remains strong.
In practice, this creates a balance between market opportunity and cost efficiency. In active coastal areas, delaying a purchase may carry the risk of losing suitable properties or facing higher prices later, which can offset tax advantages.
For this reason, it is better for you to evaluate the full financial picture rather than focusing only on taxation. Taxes are only part of the total acquisition cost. Legal fees, notary charges, registration expenses, and mortgage-related costs still form part of the overall purchasing costs in Spain.
How Does This Regulation Affect the Valencian Property Market?
While the reduction from 10% to 9% may appear modest, its effect becomes meaningful when applied across thousands of transactions in a high-demand international market.
It lowers entry costs, improves affordability at the margin, and strengthens the appeal of resale properties across the region. At the same time, it does not fundamentally alter market structure or pricing dynamics. New-build demand remains strong, luxury taxation remains unchanged, and overall market performance continues to depend on supply, demand, and location fundamentals.
Now, if you want to participate in this dynamic market, you may explore the real estate listings for the Valencian Community.
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