Quick Answer: From 1 June 2026, Ley 5/2025 cuts the general Valencian ITP rate on resale homes from 10% to 9% for declared values up to €1 million, with AJD on new build at 1.4%. Most international buyers in Alicante and Valencia provinces sit inside the band because median foreign tickets stay well under €400,000. The notary signing date controls which rate applies.
Spain logged 714,237 residential transactions in 2025 (+11.5% year on year). Alicante province alone recorded 43.29% foreign buyer share. A one-point ITP cut on the typical Costa Blanca ticket is not cosmetic: it shifts net yield math for value investors who underwrite on all-in cost, not headline price alone.
Full legal map: Valencian Community ITP guide 2026. National fork between ITP and IVA: Spain property transfer tax.
What changed on 1 June 2026?
Ley 5/2025 reduced the general Comunidad Valenciana ITP rate from 10% to 9% for most resale acquisitions under €1 million. AJD on documented acts drops from 1.5% to 1.4% on qualifying new-build deeds. Purchases completed before 1 June 2026 remain on the old stack.
| Purchase type | Tax stack from 1 Jun 2026 | Applies to |
|---|---|---|
| Resale under €1M | 9% ITP | Second-hand apartments and villas |
| Resale over €1M | 11% on scale | Premium Marbella-style tickets in Denia or Javea |
| New build from developer | 10% IVA + 1.4% AJD | Off-plan and completed developer stock |
Worked savings for typical foreign tickets
These examples assume declared value equals agreed price and ignore reduced bands for first home or large families.
| Declared price | Old ITP 10% | New ITP 9% | Saving |
|---|---|---|---|
| €180,000 | €18,000 | €16,200 | €1,800 |
| €250,000 | €25,000 | €22,500 | €2,500 |
| €350,000 | €35,000 | €31,500 | €3,500 |
| €750,000 | €75,000 | €67,500 | €7,500 |
Add notary, registry, and legal fees (often 1.5% to 2.5% combined) to see true all-in cost. Stack guide: cost of buying property in Spain.
Why Alicante buyers feel this first
Foreign intensity concentrates on the Costa Blanca and Valencia metro. When 43.29% of Alicante deals involve international buyers, a regional ITP cut flows straight into shortlist comparisons against Murcia (8% ITP) or Andalucia (7% general band). The gap narrows without changing rental licence rules or NRIT on rent.
Area context: Costa Blanca property investment guide and Torrevieja area profile.
New build buyers: check IVA, not ITP
Agents marketing “tax cut” sometimes blur resale and new build. Developer contracts still run on 10% IVA. The June 2026 win on new build is the AJD tick from 1.5% to 1.4%, smaller than the one-point ITP move on resale.
Off-plan payment timing: off-plan payment schedule Spain.
Need an all-in fee model for a specific Alicante or Valencia resale? Request a buyer cost review before arras.
Cost stack reviewClosing checklist before you sign
- Confirm escritura date on or after 1 June 2026 if you want 9% ITP.
- Ask your lawyer whether reference value (valor de referencia) triggers a higher base.
- Model NRIT and IBI after purchase, not only transfer tax.
- Cross-check STR plans against municipal tourist licence rules.
Tax umbrella for foreign owners: Spain property taxes for foreigners.
Frequently Asked Questions
Resale purchases completed from 1 June 2026 pay 9% ITP instead of 10% on values up to €1 million. On a €300,000 apartment the ITP line falls by €3,000. Properties above €1 million still pay 11% ITP on the portion above the threshold under the general scale.
Yes. Alicante sits inside the Comunidad Valenciana, so Torrevieja, Benidorm, Calpe, and Javea resale deals signed at notary from 1 June 2026 qualify for the 9% general band when the declared value is under €1 million.
No. Developer sales pay 10% IVA plus AJD stamp duty, now 1.4% in the region from June 2026. ITP applies only to second-hand resales. Budget the correct fork before comparing two listings.
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