Good News for Property Buyers: Transfer Tax (ITP) Reduced to 9% in the Valencian Community
If you are considering buying a resale property on the Costa Blanca, there is some excellent news. As of 1 June 2026, the Property Transfer Tax (Impuesto sobre Transmisiones Patrimoniales – ITP) in the Valencian Community has been reduced from 10% to 9% for most resale property purchases. This change represents a significant saving for buyers and makes owning a property in Spain even more attractive.
What is ITP?
ITP is the tax paid when purchasing a resale property in Spain. Unlike new-build properties, which are subject to VAT (IVA), second-hand properties are subject to this transfer tax.
The tax is paid by the buyer and forms one of the main additional costs to consider when purchasing a property in Spain.
What Has Changed?
Until recently, the standard ITP rate in the Valencian Community was 10%. Since 1 June 2026, this rate has been reduced to 9% for most resale property transactions.
Although a reduction of 1% may seem small at first glance, it can result in substantial savings depending on the purchase price of the property.
How Much Can You Save?
Here are a few examples:
Property price: €250,000 → Saving of €2,500
Property price: €400,000 → Saving of €4,000
Property price: €600,000 → Saving of €6,000
Property price: €950.000 → Saving of €9,500
For many buyers, this saving can cover legal fees, notary costs, or part of the furnishing budget for their new home.
Does This Apply to All Properties?
The new 9% rate applies to most resale properties in the Valencian Community, including popular areas such as Moraira, Benissa, Jávea, Calpe, Denia and the surrounding Costa Blanca region.
Properties with a value exceeding €1 million may be subject to different tax rates, and certain buyer categories may qualify for reduced rates depending on their circumstances.
Why Is This Important for Buyers?
Buying a property involves more than just the purchase price. Taxes, legal fees, notary fees and registration costs all need to be considered when calculating your budget.
The reduction of the ITP rate means lower acquisition costs and allows buyers to keep more of their budget available for renovations, furniture, investments or simply enjoying their new life under the Spanish sun.
For international buyers looking to purchase a holiday home, permanent residence or investment property on the Costa Blanca, this is a welcome development.
Thinking About Buying on the Costa Blanca?
At Casa Mia Estates, we guide our clients through every step of the buying process. From finding the perfect property to explaining taxes, legal requirements and purchase costs, our goal is to make buying in Spain as straightforward and stress-free as possible.
If you would like to learn more about how the new ITP rate affects your purchase plans, feel free to contact our team. We will be happy to help you calculate the total costs and find the right property for your needs.
Your dream home on the Costa Blanca may now be even more affordable than you think.