Scope note: This guide covers Comunidad Valenciana ITP and AJD only (Alicante, Valencia, Castellón, Costa Blanca). It does not replace the national fork between ITP, IVA, and AJD across all of Spain. For that framework, read the Spain property transfer tax guide. For a dated news summary of the June reform, see Valencian Community ITP reform June 2026.
Quick answer: From 1 June 2026, Ley 5/2025 sets Valencian ITP at 9% on resale homes priced under €1 million and 11% on the slice above €1 million. New builds pay 10% IVA plus 1.4% AJD, not ITP. Spain recorded 714,237 residential deals in 2025; Alicante province led coastal liquidity with a 43.29% foreign buyer share, so most international budgets on the Costa Blanca now land in the 9% band.
What is Valencian Community ITP and how is it different from national rules?
ITP in the Comunidad Valenciana is the regional transfer tax on resale homes, set by the Generalitat Valenciana rather than by central government, and since 1 June 2026 it costs 9% of the price under €1 million. National law defines what ITP is; Valencia sets the rate, the bands, the filing forms and the concessions for its 3 provinces.
Spain runs two purchase-tax regimes. Resales pay ITP (Impuesto sobre Transmisiones Patrimoniales). First sales from a developer pay IVA plus AJD stamp duty. That fork is national and explained in the Spain ITP vs IVA guide. What changes when you buy in Alicante, Benidorm, Valencia city, or Castellón is how much ITP costs, because autonomous communities write their own scales.
The Comunidad Valenciana covers:
| Province | Major buyer markets |
|---|---|
| Alicante | Costa Blanca, Calpe, Torrevieja, Orihuela Costa |
| Valencia | Valencia city, Sagunto, coastal towns north of Alicante |
| Castellón | Castellón de la Plana, Vinaròs, Peñíscola |
If the property’s fiscal address sits in one of these provinces, Valencian ITP rules apply, even when your lawyer is based in Madrid or your bank is in London. Alicante province alone recorded 53,385 transactions in 2025 with a 43.29% foreign share, so this rate card prices more international purchases than any other regional ITP regime in Spain.
Red flag: any 2026 fee quote for Alicante or Valencia still built on the old flat 10%. A quote that misses Ley 5/2025 overstates the tax by €3,000 per €300,000 of price, and an adviser who has not caught a 1 June 2026 rate change deserves a second look on everything else. This page is the deep pillar on those regional rules after Ley 5/2025. It is intentionally narrower than the national transfer-tax guide and longer than the June 2026 reform news brief.
What does Ley 5/2025 change from 1 June 2026?
Ley 5/2025 rewrites Valencian property transfer tax from 1 June 2026: resale ITP is 9% on the full price when the deal sits under €1 million, 11% applies to the slice above €1 million on larger transactions, and new-build AJD is fixed at 1.4%, down from the previous 1.5% rate.
Insider tip: the date that controls the rate is the escritura date, not the offer or arras date. A purchase agreed in May 2026 but completed on 2 June 2026 already sits under the 9% card, and a completion pulled forward into late May would have paid the old rate for the sake of a week.
Before the reform, many Valencian resales were budgeted at a flat 10% ITP, which made the region one of Spain’s pricier coastal tax jurisdictions. Ley 5/2025 targets the bulk of the market. With median foreign purchases in Alicante province well under €400,000, the 9% band captures most international transactions on the Costa Blanca and in Valencia city suburbs.
| Transaction type | Tax from 1 Jun 2026 | Applies to |
|---|---|---|
| Resale under €1M | 9% ITP on full price | Second-hand from private seller |
| Resale over €1M | 9% on first €1M; 11% on excess | Luxury villas, penthouse stock |
| New build from developer | 10% IVA + 1.4% AJD | First transmission, off-plan or completed |
| Resale (pre-reform completions) | Prior scale, often 10% flat | Deals signed before 1 Jun 2026 |
The law also confirms AJD at 1.4% on notarial deeds for new builds, replacing the 1.5% figure many buyers still had in old spreadsheets. IVA on residential new builds remains 10% nationally; Valencia only controls AJD on its territory.
Market context: Spain’s INE counted 714,237 residential property transactions in 2025. Alicante province posted 53,385 deals, ranking third nationally, with a 43.29% foreign buyer share, the highest of any province. When a region that liquid attracts a tax cut on sub-€1M resales, the policy lands where most cross-border buyers actually purchase.
How much ITP do you pay on a Valencian resale under €1 million?
On any resale priced under €1 million, the calculation is one multiplication: the declared deed price times 9%, paid to the Valencian tax agency, so a €300,000 apartment carries €27,000 of ITP and a €500,000 villa carries €45,000. There is no separate municipal surcharge on top of ITP for a standard residential home purchase.
Worked examples under Ley 5/2025:
| Purchase price | ITP rate | ITP due | Illustrative all-in tax+fees |
|---|---|---|---|
| €250,000 | 9% | €22,500 | around €280,000 to €285,000 |
| €380,000 | 9% | €34,200 | around €420,000 to €428,000 |
| €550,000 | 9% | €49,500 | around €605,000 to €615,000 |
| €950,000 | 9% | €85,500 | around €1.04M to €1.06M |
These all-in figures assume regulated notary and registry scales plus independent legal fees near 1% plus IVA. They exclude mortgage costs. For a line-by-line national template, start at the cost of buying property in Spain hub.
Buyer scenario (Costa Blanca mid-market): a foreign buyer purchasing a €320,000 resale apartment in Orihuela Costa after 1 June 2026 pays €28,800 of ITP at the 9% rate. Against the old flat 10% assumption the same deal carried before the reform, that is €3,200 saved on tax alone, money that arrives on completion day rather than over years of letting. Spread across a gross yield near 5.5% to 6.2% on similar stock in the Costa Blanca investment guide, the reform adds roughly half a year of net rent to the buyer’s day-one economics, before any price negotiation or furnishing budget. The same arithmetic scales linearly: €4,000 saved at €400,000, €5,500 at €550,000, all the way to the €1 million threshold where the 11% band starts on the excess and the flat-rate simplicity ends.
How does the 11% ITP band work above €1 million?
When the declared price exceeds €1 million, Ley 5/2025 taxes the first €1 million at 9% and every euro above the threshold at 11%, so a €1.5 million villa is charged €90,000 plus €55,000. The split is calculated on the full deed price, not on two separate contracts, and splitting a sale into two deeds to dodge the band is a classic red flag the tax office tests for.
Formula for resales over €1 million:
ITP = (€1,000,000 × 9%) + ((price − €1,000,000) × 11%)| Purchase price | ITP on first €1M (9%) | ITP on excess (11%) | Total ITP |
|---|---|---|---|
| €1,200,000 | €90,000 | €22,000 | €112,000 |
| €1,500,000 | €90,000 | €55,000 | €145,000 |
| €2,000,000 | €90,000 | €110,000 | €200,000 |
| €3,500,000 | €90,000 | €275,000 | €365,000 |
Luxury coastal stock in Jávea, Moraira, or front-line Alicante city districts often crosses the €1 million line. For those buyers, the progressive band is still clearer than Catalonia’s multi-step scales, but 9% on the first million is not the whole story. Always model the 11% slice before comparing a €1.4M resale with a €1.1M new build taxed under IVA plus AJD.
Buyers weighing north Costa Blanca premium stock against the Costa del Sol should also read Costa Blanca vs Costa del Sol: tax is one line in a wider yield and liquidity comparison.
What AJD rate applies to Valencian new builds after June 2026?
New-build residential purchases in the Comunidad Valenciana are taxed at 10% IVA paid to the developer plus 1.4% AJD on the deed, an 11.4% combined load before professional fees. ITP does not apply on a qualifying first transmission, even when the building was finished only 1 month ago. A checklist question settles the regime in one line: is the seller the developer on a first transmission, or a private owner on a resale?
Combined new-build tax stack:
| Component | Rate | Paid to |
|---|---|---|
| IVA (residential) | 10% | Developer at completion |
| AJD (Ley 5/2025) | 1.4% | Agencia Tributaria Valenciana |
| Combined tax load | 11.4% of price | Before notary and legal fees |
Example: €480,000 off-plan apartment in Valencia province:
| Line | Amount |
|---|---|
| IVA 10% | €48,000 |
| AJD 1.4% | €6,720 |
| Tax subtotal | €54,720 |
| Notary, registry, legal (indicative) | €8,000 to €12,000 |
Off-plan buyers still need a bank guarantee on staged deposits under national consumer law. Tax timing follows completion, not reservation. If an apartment has already had a private owner, it is a resale for tax even when it looks brand new. Your solicitor should confirm the nota simple transmission history before you treat the deal as new build.
For city-level stock and yield context, pair this section with the Valencia property investment guide and the Valencia city area profile.
Need a pre-reservation tax model for Alicante or Valencia? Invest Spain Property connects you with English-speaking gestors who calculate ITP or IVA plus AJD before you sign arras.
Request a Valencian Tax EstimateHow does Valencian ITP compare to other Spanish regions in 2026?
After Ley 5/2025, the Valencian 9% sub-€1M resale rate is a mid-table entry on Spain’s ITP map: cheaper than the old flat 10% Valencian rate and Catalonia’s 10% to 11% bands, but still 2 points above Andalucía’s flat 7% and 3 points above Madrid’s 6%, a spread worth €6,000 per €300,000 of price.
| Autonomous community | Typical resale ITP 2026 | Notes for investors |
|---|---|---|
| Comunidad Valenciana | 9% under €1M; 11% above | Ley 5/2025 from 1 Jun 2026 |
| Madrid | around 6% | Low rate, high capital values |
| Andalucía | flat 7% (Ley 5/2021) | Costa del Sol’s simple rate card |
| Cataluña | 10% to 11% banded | Barcelona premium stock |
| Murcia | around 8% | Costa Cálida competitor |
| Balearics | 8% to 13% banded | Island premium |
The policy signal matters as much as the table, and it reads cleanly once the rates are lined up. Valencia cut transaction friction in the same year Spain recorded 714,237 deals, its strongest tally in over a decade, and it did so on exactly the stock its buyers actually purchase: Alicante’s 43.29% foreign share across 53,385 provincial transactions concentrates under €1 million, where the flat 9% now applies. Madrid at 6% and Andalucía at 7% still undercut the Valencian rate, but both regions price different products, capital-city flats and Costa del Sol premium stock, while the Valencian card covers Spain’s single largest international coastal market. A visible 1-point reduction on sub-€1M resales supports that pipeline without touching the 10% VAT on developer stock, which is why the reform reads as a liquidity measure rather than a giveaway, and why a regional rate table belongs on every buyer’s pre-offer checklist.
Resale versus new build is still a regime choice, not a automatic win for either side. In Valencia after June 2026:
| €500,000 scenario | Tax on price | Approx tax € |
|---|---|---|
| Resale | 9% ITP | €45,000 |
| New build | 10% IVA + 1.4% AJD | €57,000 |
On this sticker price, resale wins on tax. On energy performance, warranty, and furnishing cost, new build may still win on total ownership economics. Run both columns before you exclude either path.
What is the full Valencian buyer fee stack on a 2026 resale?
Beyond ITP, a typical Valencian resale adds regulated notary and land registry fees of €1,500 to €3,000, independent legal fees near 1% plus IVA, and gestoría work for the Modelo 600 filing. Total buyer costs commonly reach 10% to 12% over the agreed price on a standard cash purchase, and the checklist below itemises every line.
Invest Spain Property buyer fee stack (Valencian resale, post 1 Jun 2026)
Unique data from Invest Spain Property file reviews of Valencian completions in H1 2026, shown as percentages of declared deed price unless noted:
| Fee line | Typical range | Who pays | Notes |
|---|---|---|---|
| ITP (under €1M) | 9.0% | Buyer | Ley 5/2025; 11% on excess above €1M |
| Notary | 0.10% to 0.20% | Buyer | Regulated sliding scale |
| Land registry | 0.05% to 0.15% | Buyer | Registration of new ownership |
| Independent lawyer | 0.9% to 1.2% + IVA | Buyer | Due diligence, contract, ITP filing |
| Gestoría / Modelo 600 | €350 to €900 flat | Buyer | Self-assessment and payment |
| Mortgage (if used) | 0.5% to 1.5% + AJD on deed | Buyer | Bank valuation and stamp on loan |
| Indicative total (cash buyer) | 10.5% to 12.0% | Buyer | Excludes furnishing and community |
On a €420,000 resale in Calpe or Guardamar, the stack often lands near €450,000 to €458,000 all-in for a cash buyer with independent legal counsel. That is €37,800 ITP at 9% plus roughly €12,000 to €18,000 in professional and registry costs.
Invest Spain Property reviewers flag two recurring gaps: buyers who budget ITP on the agreed price when the cadastral reference value is higher, and buyers who forget plusvalía is usually a seller cost but can be negotiated. For reference-value mechanics, read cadastral value in Spain explained. For legal checks before completion, use the Spain property due diligence guide.
Who qualifies for reduced Valencian ITP concessions?
Ley 5/2025 sets the baseline 9% and 11% bands, but separate Generalitat rules can reduce ITP further for primary-residence buyers, large families, disabled buyers and certain age thresholds, in some cases cutting the rate by 2 to 3 percentage points. Concessions depend on personal circumstances and intended use, not on passport alone.
Common concession themes (confirm current decrees with a gestor):
| Buyer profile | Typical concession direction | Planning note |
|---|---|---|
| Primary habitual residence | Reduced rate or tax base adjustment | Must occupy; timing rules apply |
| Large family certificate | Additional reduction | Documentation from regional authority |
| Under-35 first purchase | Youth housing programmes | Income caps may apply |
| Official protected housing (VPO) | Separate scale | Not standard holiday-buyer stock |
International holiday-home and buy-to-let investors usually pay the standard 9% or 11% band without primary-residence relief. EU and non-EU buyers follow the same ITP scale; residency status affects income tax on rent, not the purchase-day ITP rate. Non-resident landlords should model NRIT alongside ITP using the foreign buyer hub.
Red flags before you rely on a concession:
| Red flag | Why it matters |
|---|---|
| Promised “10% ITP” quote after 1 Jun 2026 | Outdated; sub-€1M resales are 9% |
| Developer calling a resale “new” to avoid ITP | Transmission history controls the tax |
| Primary-residence discount for a holiday let | Use mismatch can trigger clawback |
| Price split across furniture to cut ITP base | Tax office can reallocate value |
When must you file and pay Valencian ITP after the notary?
Filing runs on a fixed clock: the buyer submits Modelo 600 and pays ITP to the Agencia Tributaria Valenciana within 1 month of signing, typically counted as 30 working days from the escritura. Your gestor calculates the debt from the deed price or the reference value, whichever of the two is higher.
Timeline checklist:
- Completion day: Notary signs the escritura; you receive a copia simple.
- Days 1 to 5: Lawyer orders updated nota simple and cadastral reference value check.
- Days 5 to 20: Gestor prepares Modelo 600 with NIE, IBAN, and deed details.
- Before day 30 (working): ITP paid; proof stored for land registry submission.
Late filing triggers surcharges that escalate in steps of 5%, 10% and 15% depending on the delay, plus interest. In busy Costa Blanca months gestorías queue filings, so the 30-day window is a deadline to manage, never an option to consider. IVA on new builds is collected by the developer at completion, so AJD is the main self-assessed stamp for those buyers.
If you buy with a mortgage, the loan deed attracts separate AJD in many cases. Cash buyers on resale avoid that second stamp unless they later remortgage.
How does cadastral reference value affect your Valencian ITP bill?
ITP is calculated on the higher of the declared deed price or the administratively set reference value (valor de referencia), so a €260,000 bargain with a €300,000 reference value is taxed as €300,000. If your discount purchase sits below the reference figure, the tax office can assess the difference and bill it later, which makes an unchecked reference value the quietest red flag in the whole Valencian fee stack.
This rule is national in logic but hits Valencian coastal buyers often because 2021 to 2025 price growth pushed transaction prices and reference values on different schedules. Before you celebrate a sub-market deal in Alicante city or Denia, ask your lawyer for:
| Check | Purpose |
|---|---|
| Cadastral reference value | Minimum tax base |
| Last IBI receipt | Confirms cadastral identity |
| Compare deed price vs reference | Budget worst-case ITP |
| Seller’s capital gains position | Separate from your ITP |
Example: agreed price €290,000, reference value €315,000, under-€1M band:
| Base used | ITP at 9% |
|---|---|
| Agreed price only (wrong budget) | €26,100 |
| Reference value (likely assessed) | €28,350 |
The €2,250 gap is minor here; on larger deals the spread hurts more. Full mechanics sit in the cadastral value guide.
Which Valencian markets benefit most from the 9% ITP band?
Alicante province and mid-market Valencia city districts are the biggest winners from the reform, because foreign-buyer purchase volume clusters comfortably under the €1 million line, exactly where Ley 5/2025 applies its flat 9% rate, and Alicante province carried a 43.29% foreign share across its 53,385 recorded residential transactions in 2025.
| Market | 2025 context | ITP reform effect |
|---|---|---|
| Costa Blanca apartments | 43.29% foreign share in Alicante | Most deals at 9% flat |
| Orihuela Costa / Torrevieja | High yield, sub-€400K stock | €2K to €4K tax saving vs old 10% |
| Valencia city (Patraix, Cabanyal) | 40,839 provincial transactions | Improves net yield on €250K to €600K |
| North Costa Blanca villas | Mixed; many over €1M | Progressive 9% + 11% band |
| Castellón coast | Smaller foreign share | Same law, fewer completions |
Insider tip: the reform is strongest where the old 10% assumption still lingers in asking prices. Sellers who priced their margin before June 2026 have not repriced for the buyer’s €3,000-per-€300,000 saving, and quoting the new rate card in negotiation captures it.
Link area research to Costa Blanca property investment, Valencia property investment, property for sale in Orihuela Costa, and Mislata / metro Valencia when you narrow location after tax modelling.
Closing verification checklist
Six checks stand between Valencian Community Itp Guide 2026 Guide for Investors and a completed purchase, and none takes more than a few days. Budget 10% to 13% over the price for tax, notary, registry and independent legal work, keep the lawyer independent of the seller and agent, and treat every item below as a condition of the arras contract rather than an afterthought.
- Confirm completion date is on or after 1 June 2026 before you budget 9% / 11% Ley 5/2025 rates.
- Classify the deal as resale (ITP) or new build (IVA + 1.4% AJD) using the nota simple, not marketing copy.
- Model ITP on reference value if it exceeds the agreed price.
- For prices over €1 million, split the calculation: 9% on the first million, 11% on the remainder.
- Budget 10 to 12% all-in buyer costs on top of price for a standard cash resale.
- Ask your gestor about primary-residence concessions only if you genuinely qualify.
- Cross-check national context in the ITP vs IVA guide and regional strategy in Costa Blanca vs Costa del Sol.
- Store Modelo 600 payment proof with the escritura for future resale due diligence.
What the reform saves a typical buyer is worked through in our Valencia ITP buyer savings briefing.
Frequently Asked Questions
Ley 5/2025 sets ITP at 9% on the full price of a resale under €1 million and 11% on the portion above €1 million. The rule applies in Alicante, Valencia, and Castellón provinces from 1 June 2026.
No. New builds from a developer pay 10% IVA plus 1.4% AJD, not ITP. Only second-hand purchases from a private seller use ITP.
Ley 5/2025 is the Valencian law that introduced the 9% and 11% ITP bands and the 1.4% AJD rate. It took effect on 1 June 2026.
€750,000 is under the €1 million threshold, so ITP is 9%: €67,500. Add notary, registry, and legal fees for the full buyer stack.
AJD on new-build deeds is 1.4% from 1 June 2026, alongside 10% IVA on residential property. Resales taxed with ITP do not pay AJD on the main purchase deed.
Madrid charges a flat 6% and Andalucía a flat 7%, so Valencia's 9% under €1M sits above both and below Catalonia's 10% to 11%. The clarity of the flat band matters given Alicante's 43.29% foreign buyer share in 2025.
Separate Generalitat concessions may reduce ITP for primary residence, large families, or qualifying young buyers. Holiday-home investors typically pay the standard 9% or 11% bands.
Buyers self-assess via Modelo 600 and pay within 30 working days of the escritura. Late payment triggers surcharges and interest.
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