Tax cuts in the Valencian Community 2026: guide to buying property on the Costa Blanca
Buying property in the Valencian Community will be cheaper from June 2026: tax guide for buyers
The Valencian Community continues to strengthen its position as one of the top destinations for international buyers looking to purchase property in Spain. Beyond its climate, lifestyle, and competitive prices, a new advantage is coming: a reduction in the Property Transfer Tax (ITP) starting on June 1, 2026.
If you are considering buying property in Alicante, Valencia, Torrevieja, Orihuela Costa or anywhere along the Costa Blanca, this tax change could save you thousands of euros.
New ITP reduction in the Valencian Community in 2026
From June 1, 2026, the Valencian Community will reduce the Property Transfer Tax (ITP) from 10% to 9% on the purchase of second-hand homes.
This tax is mandatory when buying resale property in Spain and represents one of the main additional costs for both national and international buyers.
What does this mean for foreign buyers?
Simply put: buying property in Spain will be cheaper.
Many international buyers are not fully aware that, in addition to the purchase price, there are taxes and additional costs involved. With this reduction, the total acquisition cost becomes significantly lower.
Example of savings when buying property in Spain
Let’s consider a property in the Costa Blanca priced at €200,000:
Before June 1, 2026
- ITP at 10%
- Tax payable: €20,000
From June 2026
- ITP at 9%
- Tax payable: €18,000
✅ Total savings: €2,000
For higher-value properties, the savings become even more significant:
- €300,000 property → €3,000 savings
- €500,000 property → €5,000 savings
- €1,000,000 luxury villa → €10,000 savings
What is ITP in Spain?
The Property Transfer Tax (ITP) is the tax paid when purchasing a second-hand property in Spain.
It is different from VAT, which applies to new-build properties.
In summary:
- New property → VAT + AJD (Stamp Duty)
- Resale property → ITP
This tax reduction directly impacts a large part of the property market in the Valencian Community, especially in areas with strong international demand.
What about AJD (Stamp Duty)?
The AJD (Actos Jurídicos Documentados) is another tax linked to notarial deeds and mortgage transactions.
In most cases in Spain, mortgage-related AJD is paid by the bank rather than the buyer, which continues to benefit property purchasers using financing.
In addition, the regional regulations in the Valencian Community include certain exemptions and reductions in specific cases.
Why do so many foreigners buy in the Valencian Community?
The Valencian Community has become one of Europe’s most attractive real estate markets due to:
- Over 300 days of sunshine per year
- Excellent international air connections
- Lower cost of living compared to other European countries
- Wide selection of beachfront properties
- Modern infrastructure
- Strong rental demand (holiday and long-term rentals)
Areas such as the Costa Blanca continue to experience strong international demand.
Is 2026 a good time to buy property in Spain?
All signs point to yes.
The combination of:
- Lower property transfer tax
- A stable real estate market
- High international demand
- Strong investment climate
- Continuous appreciation in coastal areas
makes 2026 a very attractive year to buy property in Spain, especially in the Valencian Community.
Tips for foreign buyers before purchasing in Spain
Before buying property in Spain, it is recommended to:
- Obtain an NIE (Foreigner Identification Number)
- Open a Spanish bank account
- Hire independent legal advice
- Review all taxes and purchase costs
- Check the latest fiscal benefits from June 2026
- Work with a real estate agency experienced in international clients
Conclusion
The reduction of the ITP in the Valencian Community from June 1, 2026 is excellent news for foreign buyers looking to invest in Spanish property.
Thanks to this tax cut, buying a home on the Costa Blanca and other areas of the region will become more affordable, further increasing the attractiveness of one of Europe’s most sought-after real estate markets.
If you are planning to buy a home in Spain in 2026, this new tax scenario could save you thousands of euros on your investment.
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