Planning to invest in property on the sunny Costa Blanca? Then there is excellent news from the tax front. There will be lower transfer taxes in Costa Blanca. The Comunidad Valenciana government is taking an important step to stimulate the housing market: the general transfer tax rate (ITP) will be reduced from 10% to 9%.
What exactly will change for existing homes?
The transfer tax, known in Spain as the Impuesto de Transmisiones Patrimoniales (ITP), is the tax you pay when buying an existing property (resale). For a long time, the Valencia region applied a flat rate of 10%.
Under the new budget measures (Law 5/2025), it was decided to reduce this rate to 9% For homes with a value of up to €1.000.000. For the luxury segment above the million, the rate of 11% remains in force.
While a drop in 1% may seem limited on paper, in practice the amounts involved are substantial. The table below shows what this change means for your procurement budget:
| Property purchase price | ITP Old (10%) | ITP New (9%) | Your savings |
| € 250.000 | € 25.000 | € 22.500 | € 2.500 |
| € 500.000 | € 50.000 | € 45.000 | € 5.000 |
| € 750.000 | € 75.000 | € 67.500 | € 7.500 |
Here is an overview of purchase costs in Spain.
What will change for new construction?
Are you buying a new-build property? Then you will not pay ITP, but you will owe 10% VAT (IVA), plus stamp duty (Actos Jurídicos Documentados or AJD). While VAT remains unchanged, it is worth noting that the AJD in Valencia has now also been reduced slightly to 1.4%.
Read more about the buying process in new construction.
From when does this apply?
The cut has been officially announced to take effect from 1 June 2026. This means that buyers who execute their deed at the notary after this date will immediately benefit from the lower rate.
So buyers who have reserved where the deed is expected after 1 June 2026 also enjoy this benefit.
Why these lower transfer taxes in Costa Blanca?
With this measure, the region of Valencia aims to strengthen its competitiveness compared to other regions such as Madrid or Andalusia, where taxes have also fallen in recent years. The aim is simple: to lower the threshold for both local and international buyers and promote throughput in the housing market.
Confianz assists you
Want to know what these new rules mean for your specific case? The experts from Confianz guide you legally and fiscally throughout the entire purchase process.
