Published: 20 May 2026
Updated: 20 May 2026
Author: Citrine PR Department

Valencian Region to Cut Property Transfer Tax from 10% to 9% from June 2026

The Valencian Community is set to reduce its Property Transfer Tax (Impuesto de Transmisiones Patrimoniales, or ITP) from 10% to 9% for resale properties, in a move expected to boost activity across the regional housing market.

The tax reduction is scheduled to take effect on 1 June 2026 and will apply to second hand residential property purchases throughout the region, including popular international buyer destinations such as Alicante, Valencia and Castellón.

Under the current system, buyers purchasing a resale property in the Valencian Community pay a standard ITP rate of 10%. Once the new measure comes into force, the rate will fall to 9%, creating immediate savings for purchasers.

For example, a buyer purchasing a resale property for €300,000 would currently pay €30,000 in transfer tax. Under the new 9% rate, the same buyer would pay €27,000 — a saving of €3,000.

The reform is expected to apply only to resale properties, as new build homes are generally subject to VAT and stamp duty rather than ITP. Reports also indicate that higher value properties above €1 million will continue to be taxed at 11%, while existing reduced tax rates for certain groups including younger buyers, large families and some vulnerable purchasers are expected to remain in place.

The announcement has been welcomed by real estate professionals across the Costa Blanca and wider Valencian region, where international demand for Spanish property remains strong despite higher borrowing costs seen across Europe over the past two years.

Positive News for Property Buyers in Spain

The reduction represents a significant benefit for buyers at a time when transaction costs remain one of the largest upfront expenses involved in purchasing property in Spain. Lower transfer taxes improve affordability, reduce the cash required to complete a purchase and may allow buyers to consider higher quality properties or better locations within the same budget.

For overseas purchasers in particular, the change enhances the attractiveness of the Valencian Community compared with other Spanish regions where transfer tax rates remain higher. The savings could be especially meaningful for retirees, lifestyle buyers and investors targeting the Costa Blanca, where demand for resale villas, apartments and holiday homes continues to grow.

Industry experts also believe the measure could stimulate market activity by encouraging hesitant buyers to move forward with purchases ahead of the summer 2026 season, potentially increasing transaction volumes across the region.

Contact Citrine Real Estate today to take a look at our large selection of new and resale properties.  

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