Valencia ITP Reform June 2026: Property Tax Update

Quick Answer: From 1 June 2026, buyers purchasing a resale property in the Valencian Community for under €1 million pay 9% ITP (Impuesto de Transmisiones Patrimoniales), with AJD (Actos Jurídicos Documentados) stamp duty for new-build transactions confirmed at 1.4%. This targeted rate cut reduces upfront acquisition costs for the vast majority of international buyers active in Alicante and Valencia provinces.

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The Valencian Community, home to Spain’s third-busiest property market by transaction volume in Alicante province and the wider Costa Blanca, has reset the maths for resale buyers. With the median foreign purchase in Alicante sitting well under €400,000, almost every international transaction now falls inside the new 9% band, and the AJD rate for new builds is locked at 1.4%. Budget the full stack via the cost of buying property in Spain guide and the Alicante city area profile before you model net yield.

What Is the Valencian ITP Reform and How Does It Work?

From 1 June 2026, the Valencian Community applies a 9% ITP rate to resale property purchases priced under €1 million. This replaces the previous higher bracket and covers the full purchase price for qualifying transactions. AJD stamp duty on new-build purchases is confirmed at 1.4%.

ITP, Impuesto de Transmisiones Patrimoniales, is the regional transfer tax applied to resale (second-hand) property purchases across Spain. Each autonomous community sets its own rate, which is why buyers in Andalucía, Catalonia, or Valencia pay different amounts on the same transaction value. Spain’s ITP rates generally range from 6% to 10% depending on the region and price bracket.

The Valencian reform creates a simpler, more competitive framework for the bulk of the market. With the median purchase price for foreign buyers in Alicante province sitting well under €400,000, the vast majority of international transactions in the region will benefit from the full 9% rate. The table below illustrates the ITP liability at different price points under the new framework:

Purchase Price	ITP Rate (June 2026 onwards)	ITP Amount Due	AJD (new-build only)
€200,000	9%	€18,000	1.4% → €2,800
€350,000	9%	€31,500	1.4% → €4,900
€600,000	9%	€54,000	1.4% → €8,400
€900,000	9%	€81,000	1.4% → €12,600

For a complete breakdown of how ITP, IVA, and AJD apply across different property types and purchase scenarios in Spain, see our dedicated Spain Property Transfer Tax: ITP and IVA Guide.

Why Does This Matter for Costa Blanca and Valencia Buyers?

Alicante province recorded 53,385 residential transactions in 2025, Spain’s third-highest by volume, with a 43.29% foreign buyer share. The Valencian ITP reform directly reduces the upfront acquisition cost for tens of thousands of international buyers active each year in this market.

The Costa Blanca is consistently Spain’s most foreign-buyer-intensive coastal market. Towns such as Calpe, Torrevieja, Orihuela Costa, and Jávea draw buyers from the United Kingdom, Germany, the Netherlands, and Belgium, many of whom purchase in the €200,000–€500,000 range. For these buyers, a tangible reduction in the ITP rate translates to savings of €2,000–€5,000 per transaction, enough to cover one to two years of IBI property tax and community fees combined.

For buyers comparing the Costa Blanca with competing coastal regions, the reform also strengthens the area’s relative tax position. Andalucía applies a sliding ITP scale that can produce effective rates above the Valencian flat rate for mid-market resale transactions. The simplified 9% bracket in Valencia is therefore highly competitive for purchases in the €250,000–€800,000 range.

Beyond the direct tax saving, the reform sends a clear signal that the Valencian regional government is actively seeking to maintain transaction volumes and support buyer accessibility, a positive backdrop for market activity in the second half of 2026.

To understand how total purchase costs, including ITP, notary and Land Registry fees, and independent legal advice, stack up across different scenarios in this region, see our detailed Costa Blanca Property Investment Guide.

How Does ITP Interact With AJD on New-Build Purchases?

New-build purchases in the Valencian Community are not subject to ITP. Instead, buyers pay 10% IVA (VAT) plus AJD stamp duty at 1.4%. The June 2026 reform confirms the 1.4% AJD rate, providing clarity for buyers entering the off-plan market in Alicante and Valencia provinces.

This distinction is critical and frequently misunderstood. ITP applies only to resale transactions, when purchasing directly from a previous private owner. When buying a new-build property from a developer, the applicable taxes are IVA at 10% of the purchase price plus AJD at 1.4%, giving a combined effective rate of 11.4% on the tax component alone.

For buyers targeting new-build apartments along the Valencia coast, the confirmed 1.4% AJD rate supports more accurate pre-purchase financial modelling. Several significant off-plan launches in Alicante and Valencia provinces are expected throughout 2026, and buyers at the reservation or early construction stage can now factor a stable tax rate into their total acquisition cost budgets.

Practical note for buyers: Always instruct an independent solicitor or gestor to confirm the applicable tax regime, ITP or IVA plus AJD, before signing any reservation agreement. The correct tax category depends on whether the property is legally classified as a first transmission (new-build from developer) or second transmission (resale from private seller), not simply on whether the property appears new or has been recently renovated.

Buying in the Valencian Community in 2026? Our advisors can connect you with English-speaking solicitors and gestors who will calculate your exact ITP or AJD liability before you sign.

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What Should Buyers Confirm Before Completing a Valencian Purchase?

Before exchanging contracts on any resale property in the Valencian Community, buyers should confirm the property’s transmission status, the exact ITP liability under the new 9% bracket, and whether any additional regional concessions apply to their personal circumstances.

The Valencian Community has historically offered supplementary ITP reductions for specific buyer categories, including first-time buyers purchasing a primary residence and buyers under a certain age threshold. These concessions may interact with the new 9% base rate, potentially reducing the effective rate further for qualifying individuals. Your independent solicitor or gestor should advise on eligibility based on your intended use and personal circumstances before completion.

Key checks before exchanging contracts in the Valencian Community:

Confirm the property is classified as a second transmission (resale), meaning ITP rather than IVA plus AJD applies
Verify the agreed purchase price falls under the €1M threshold for the 9% rate
Ask your gestor whether any regional concessions apply, for example, primary residence buyer or age-related reductions
Budget for notary fees (typically €600–€1,500), Land Registry registration fees, and independent legal costs in addition to the ITP liability
Total acquisition costs in the Valencian Community typically run 10–12% above the purchase price when all taxes and fees are included

Whether you are buying a holiday home on the Costa Blanca or a buy-to-let apartment in Valencia city, the June 2026 ITP reform makes the Valencian Community a more cost-competitive destination. Factoring the correct tax rate into your financial model from the outset avoids unexpected budget pressure at the point of completion.

For a broader overview of ownership costs, rental income tax obligations, and investment strategy across the Valencia region, see our Valencia Property Investment Guide.

Frequently Asked Questions

What is the new ITP rate in the Valencian Community from June 2026?

From 1 June 2026, the Valencian Community applies a reduced ITP rate of 9% on resale property purchases priced under €1 million. This benefits the vast majority of international buyers in Alicante and Valencia provinces. AJD stamp duty for new-build purchases is confirmed at 1.4%.

Does the 9% ITP rate apply to new-build properties in Valencia?

No. The 9% ITP rate applies only to resale (second-hand) property purchases from a private seller. New-build purchases from a developer are subject to 10% IVA (VAT) plus 1.4% AJD stamp duty. The tax regime depends on the legal transmission category, not whether the property looks new.

How does the Valencian ITP reform compare to other Spanish regions?

Spain's ITP rates vary by autonomous community, typically ranging from 6% to 10%. The Valencian Community's new 9% bracket for purchases under €1M is competitive within this range and compares favourably to Andalucía's progressive scale for mid-market resale transactions between €250,000 and €800,000.

What are the total buying costs in the Valencian Community after the reform?

For a resale purchase, buyers should budget for 9% ITP plus notary, Land Registry, and legal fees, bringing total acquisition costs to approximately 10–12% above the purchase price. For new-build purchases, the equivalent envelope is 10% IVA plus 1.4% AJD, resulting in a similar overall cost range.