Significant savings for property buyers: Valencian region cuts transfer tax to 9%
The Valencian region has announced a pivotal tax reduction, providing welcome news for prospective property buyers and investors. The general rate for the Property Transfer Tax (Impuesto de Transmisiones Patrimoniales, or ITP), one of the largest single tax costs associated with purchasing existing homes in Spain, is being permanently lowered from 10% to 9%.
When the Reduction Takes Effect
This significant tax reduction is set to take effect from June 1, 2026.
The new 9% rate will apply to the purchase of resale residential properties within the Valencian region, which encompasses the popular provinces of Valencia, Alicante, and Castellón. This change offers an immediate financial benefit to most buyers.
It is crucial to note that the new 9% rate is determined by the date the public deed (escritura pública) is signed before the notary. Purchases completed before June 1, 2026, will still be subject to the previous 10% rate.
The savings can be substantial: for instance, a buyer purchasing a resale property valued at €300,000 would realize a saving of €3,000 in transfer tax under the new rate.
The reduction applies to properties valued up to €1,000,000. Properties purchased for over €1,000,000 will continue to be taxed at the unchanged 11% rate.
How GB Abogados Can Help
The shift in ITP rates makes the Valencian region even more competitive and attractive for international buyers seeking a second home or investment property in Spain.
GB Abogados is a firm of English-speaking lawyers based in Spain with extensive experience assisting foreign buyers of property throughout the country. We specialize in navigating the Spanish legal and tax landscape to ensure your transaction is seamless and compliant.
Whether you are planning your purchase to take advantage of the new tax rate, or if you need expert legal support for all aspects of a Spanish property transaction—including Power of Attorney (POA) drafting and liaising with banks and notaries—our team is ready to guide you.
We invite you to contact us today for a no-obligation consultation to discuss your Spanish property purchase.
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