buying guide

Reduction of Property Transfer Tax in Valencia: What Does This Mean for Your Purchase?

Are you planning to buy a property in Spain? Then it is essential to have a clear understanding of the costs involved. One of the most important costs when purchasing an existing property is the property transfer tax, also known as ITP.

When Does the New 9% Property Transfer Tax Take Effect?

The reduction of the property transfer tax in Valencia will take effect on June 1, 2026.

It is important to understand that it is not the date of your reservation or purchase agreement that is decisive, but the date on which the notarial deed is signed.

If you purchase a property and the deed is signed before this date, the old rate of 10% will still apply.

If the purchase is completed from June 1, 2026 onwards, the new rate of 9% will apply.

Timing therefore plays an important role when buying property in Spain.

Does the 9% Property Transfer Tax Apply to All Properties?

Although the reduction sounds attractive, it does not apply to every purchase.

For properties with a purchase price up to €1,000,000, the new rate of 9% applies.

For properties above this threshold, a higher rate of 11% is applied.

For buyers in the higher segment, nothing changes in their favour.

This is an important nuance, especially for investments in luxury real estate on the Costa Blanca.

What Does This Mean for the Cost of Buying a Property in Spain?

The reduction has a direct impact on your total purchase costs.

For a property of €300,000, you would pay €30,000 in tax under the old rate.

With the new rate of 9%, this drops to €27,000.

For many buyers, this difference can be used for furnishing, renovation or other additional costs.

Difference Between Resale Property and New Build in Spain The property transfer tax only applies to existing properties.