On 1 June 2026 the Comunidad Valenciana cut its property transfer tax (ITP) from 10% to 9%, and stamp duty (AJD) from 1.5% to 1.4%. For anyone buying a resale home on the Costa Blanca, that is an immediate, concrete saving: 2,500 euros on a 250,000 euro purchase.
This guide explains who pays ITP, what the cut is worth at different price points, and the pitfalls that still catch foreign buyers, from the reference value to the payment deadline.
What is ITP?
ITP (Impuesto sobre Transmisiones Patrimoniales) is the transfer tax you pay when buying an existing, previously owned home in Spain. Each region sets its own rate. New builds are taxed differently: 10% IVA plus stamp duty. On the Costa Blanca, which falls under the Comunidad Valenciana, the general ITP rate is now 9%.
The cut: from 10% to 9% since 1 June 2026
The Valencian government reduced the general ITP rate from 10% to 9% and the AJD from 1.5% to 1.4%, effective for deeds signed from 1 June 2026. The cut is not retroactive: what counts is the date of the notarial deed, not the date of your reservation contract. If you are between reservation and completion, the new rate simply applies at the notary.
What you save
At 150,000 euros the tax drops from 15,000 to 13,500 euros: 1,500 euros saved. At 250,000 euros you save 2,500 euros, and at 400,000 euros the difference is 4,000 euros. On top of that, the AJD cut shaves another 0.1% off mortgage deeds and new-build purchases.
Resale vs new build: the gap widens
A new build carries 10% IVA plus 1.4% AJD, roughly 11.4% in tax. A resale home now carries 9%. The tax gap between new and existing homes on the Costa Blanca has therefore widened to around 2.4 percentage points, worth factoring in when you compare similar properties.
Watch the reference value
ITP is calculated over the higher of the purchase price and the cadastral reference value (valor de referencia) published by the authorities. If the reference value exceeds your agreed price, tax is due over that higher figure. Have your lawyer check the reference value before you sign; it prevents an unexpected additional assessment months after completion.
Reduced rates
The Comunidad Valenciana keeps reduced ITP rates for specific groups, such as young buyers purchasing a primary residence, large families and officially protected housing (VPO). The exact conditions and price caps change regularly. If you plan to live in Spain permanently, have your lawyer check whether you qualify before completion; the difference can run to several percentage points.
How and when to pay
ITP is a self-assessed tax: your lawyer or gestor files modelo 600 with the Valencian tax agency (ATV) and pays within one month of the deed. Budget it on top of the purchase price together with notary, registry and legal fees; count on roughly 11 to 13% total buying costs for a resale home.
How it compares to other regions
Murcia charges 8% general ITP and Andalusia a flat 7%, so the Costa Blanca remains slightly more expensive in tax terms than its southern neighbours, though the gap narrowed with this cut. For the full picture of everything you pay when buying, see our buying costs guide. Buying with Spainora? We calculate the complete tax picture for any property you shortlist, at the current rates.
