Valencian Community ITP Property Tax 2026: Full Guide
Valencian Community ITP under Ley 5/2025: 9% resale under €1M, 11% above, 1.4% AJD from 1 June 2026. Rates, examples, and buyer fee stack for Alicante.
By Invest Spain Property Editorial · Updated June 27, 2026 · 14 min read
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 a regional transfer tax on resale homes, set by the Generalitat Valenciana, not by Madrid central government. National law defines what ITP is; Valencia sets the rate, bands, filing forms, and concessions for the three provinces it governs.
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. 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 drops to 9% on the full price when the transaction is under €1 million, uses 11% on the amount above €1 million on larger deals, and fixes new-build AJD at 1.4%.
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 Registradores 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, you multiply the declared deed price by 9% and pay that ITP to the Valencian tax agency. There is no separate municipal surcharge on top of ITP for a standard 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.
Citability block (Costa Blanca mid-market): A foreign buyer purchasing a €320,000 resale apartment in Orihuela Costa after 1 June 2026 pays €28,800 ITP at 9%. Against the old 10% flat assumption, that saves €3,200 on tax alone. 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 price negotiation or furnishing.
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 €1 million at 11%. The split is calculated on the full deed price, not on two separate contracts.
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 pay 10% IVA to the developer plus 1.4% AJD on the deed. ITP does not apply on a qualifying first transmission, even if the building was finished last month.
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 sits in the middle of Spain’s ITP map: cheaper than old 10% Valencia assumptions and many Catalan bands, but still above Madrid’s headline 6% and parts of Andalucía on lower price slices.
| 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 | progressive, often 7% to 10% | Costa del Sol luxury can spike |
| 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. Valencia cut transaction friction while Spain overall recorded 714,237 deals in 2025. Alicante’s 43.29% foreign share shows where international capital already concentrates; a visible 1 point ITP reduction on sub-€1M resales supports that pipeline without touching VAT on developer stock.
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, independent legal fees near 1% plus IVA, and gestoría for the Modelo 600 filing. Total buyer costs commonly reach 10 to 12% over the agreed price.
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. 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?
The buyer files Modelo 600 and pays ITP to the Agencia Tributaria Valenciana, typically within 30 working days of signing the escritura. Your gestor calculates the debt from the deed price or reference value, whichever 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 and interest. In busy Costa Blanca months, gestorías queue filings; do not treat the 30-day window as optional. 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). If your “discount” purchase sits below reference value, the tax office can assess ITP on the higher figure and bill the difference later.
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 benefit most because foreign-buyer volumes cluster under €1 million, exactly where Ley 5/2025 applies the flat 9% rate.
| 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 |
Link area research to Costa Blanca property investment, Valencia property investment, Orihuela Costa area guide, and Mislata / metro Valencia when you narrow location after tax modelling.
Closing verification checklist
- 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.
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 remains near 6% on many resales. Andalucía uses progressive bands. Valencia now charges 9% under €1M, which is competitive for coastal mid-market stock 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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