Property Purchase Tax Cut to 9% in Valencia Region: What It Means for You
What British and Polish buyers on the Costa Blanca need to know about the new 9% ITP rate — and how much you'll actually save
From 1 June 2026, the Property Transfer Tax (ITP) on resale homes in the Valencian Community — Alicante, Valencia, and Castellón provinces, including the entire Costa Blanca — dropped from 10% to 9% for properties up to €1,000,000. It's a permanent rate change, not a temporary discount, and it applies to foreign buyers exactly as it applies to residents.
What actually changed
The reform comes from Law 5/2025, approved by the Cortes Valencianas on 30 May 2025 and published in the regional gazette (DOGV) the following day. It sets two changes for property buyers, both effective from 1 June 2026:
- The general ITP rate on resale property purchases falls from 10% to 9%, for properties valued up to €1,000,000.
- Stamp duty (AJD), charged on certain notarial deeds, falls from 1.5% to 1.4%.
Properties priced above €1,000,000 keep the existing 11% ITP rate — that higher band is unchanged by this reform.
Who this applies to
The 9% rate applies to resale (second-hand) homes only. New-build properties are taxed with VAT instead of ITP, so this change doesn't touch them directly, though the small AJD reduction still applies to their deeds. Crucially for international buyers: this is a change to the general regional rate, not a residency-based bonus. Non-resident British and Polish buyers pay the same 9% as Spanish residents on a standard resale purchase.
The date that decides your rate
The applicable rate is set by the date you sign the public deed (escritura pública) before the notary — not the date of your reservation contract or arras deposit. Deeds signed before 1 June 2026 pay 10%; deeds signed from that date onward pay 9%. If your purchase is close to that line, ask your lawyer whether the completion date can be scheduled to fall on the right side of it.
What it means in savings
| Purchase price | ITP at 10% (old) | ITP at 9% (new) | Saving |
|---|---|---|---|
| €200,000 | €20,000 | €18,000 | €2,000 |
| €300,000 | €30,000 | €27,000 | €3,000 |
| €500,000 | €50,000 | €45,000 | €5,000 |
The saving scales directly with price: 1% of whatever the taxable base is, whether that's the agreed purchase price or the Cadastre's reference value, whichever is higher.
A word on reduced rates
The Valencian Community already had — and keeps — a set of reduced ITP rates below the general one, running from 3% to 8% depending on the buyer's profile: young buyers under 35 purchasing a first home, large or single-parent families, and people with a recognised disability, buying a habitual residence within certain value limits. These reduced rates require the property to become the buyer's main residence and almost never apply to a second home or holiday property, so most foreign buyers on the Costa Blanca — including the large majority of DirecSpain's British and Polish clients — will pay the general 9% rate rather than a reduced one.
Frequently asked questions
Does the new 9% ITP rate apply to foreign buyers?
Yes. The rate is set by regional law and applies equally to Spanish residents and to non-resident buyers of any nationality, including British and Polish buyers.
What decides whether I pay 10% or 9%?
The date you sign the public deed (escritura) before the notary, not the date of your reservation contract or deposit. Completions from 1 June 2026 onward pay 9%.
Does the reduction apply to new-build properties?
No. New-build purchases are taxed with 10% VAT (IVA) instead of ITP, so they're unaffected by this specific change — though the AJD reduction from 1.5% to 1.4% still applies to their notarial deeds.
Can I get an even lower rate as a first-time buyer?
Only if the property becomes your habitual residence and you meet specific age, family, or disability criteria set by the region — these reduced rates generally don't apply to second homes or holiday properties.
