If you are planning to buy a property in the Valencian Community, there is good news. From 1st June 2026, two important property purchase taxes have been reduced, making the overall cost of acquiring a home significantly lower.
These changes affect the Property Transfer Tax (ITP), which applies to resale properties, and the Stamp Duty Tax (AJD), which applies to certain notarised and registered property transactions. For many buyers, the savings can amount to several thousand euros.
At Fuster & Associates, we regularly assist clients throughout the property purchase process in Spain, including legal due diligence, conveyancing and tax planning. Understanding these recent tax reductions can help buyers better assess the total cost of acquisition and make more informed investment decisions.
Property Transfer Tax (ITP): Reduced from 10% to 9%
The Property Transfer Tax (Impuesto sobre Transmisiones Patrimoniales – ITP) is paid when purchasing a resale property in Spain.
Until 31st May 2026, the standard ITP rate in the Valencian Community was 10%. From 1st June 2026, the general rate has been reduced to 9%, lowering the tax burden for most property buyers. Properties valued above €1 million continue to be taxed at 11%.
This measure forms part of a broader package of tax reductions introduced by the Valencian regional government with the aim of encouraging investment, supporting homebuyers and improving the competitiveness of the region’s property market. The reduction benefits both Spanish residents and international purchasers acquiring resale properties in the Valencian Community.
While the general rate has been reduced, certain reduced rates and exemptions may continue to apply in specific circumstances, such as purchases by young buyers, large families, people with disabilities or victims of gender-based violence, provided the relevant legal requirements are met.
Example
Property purchase price: €350,000
- ITP before 1st June 2026 (10%): €35,000
- ITP from 1st June 2026 (9%): €31,500
Saving: €3,500
For buyers purchasing higher-value properties, the savings can be even more significant.
Stamp Duty (AJD): Reduced from 1.5% to 1.4%
The AJD (Actos Jurídicos Documentados) is a tax applied to certain notarised deeds that must be registered in a public registry. It commonly affects new-build property purchases, mortgage deeds and other property-related legal transactions.
From 1st June 2026, the general AJD rate has been reduced from 1.5% to 1.4%. Although the reduction is relatively small, it contributes to lowering the overall transaction costs associated with purchasing and financing property in the Valencian Community.
The reduced rate applies to the general AJD regime, while certain special rates remain unchanged. As a result, the exact amount payable will depend on the nature of the transaction and the specific tax rules applicable in each case.
For buyers of newly built properties, AJD remains a particularly important consideration, as it is typically payable in addition to VAT. Prospective purchasers should therefore factor both taxes into their budget when assessing the total cost of acquisition.
Example
Taxable amount: €400,000
- AJD before 1st June 2026 (1.5%): €6,000
- AJD from 1st June 2026 (1.4%): €5,600
Saving: €400
Although the percentage reduction may appear small, it can represent a meaningful saving, especially when combined with the reduction in ITP.
What Does This Mean for International Buyers?
The Valencian Community remains one of the most attractive regions in Spain for foreign property buyers, thanks to its climate, lifestyle and strong property market.
With these new tax reductions, purchasing a property has become even more affordable. Whether you are looking for a holiday home, a permanent residence or an investment property, the lower acquisition costs can help improve your overall budget and purchasing power.
Why Professional Advice Is More Important Than Ever
While the tax reductions are welcome news, understanding which taxes apply to your specific transaction is not always straightforward. The taxes payable can vary depending on factors such as:
- Whether the property is new-build or resale.
- Whether a mortgage is involved.
- The purchase price of the property.
- Your residency status.
- Eligibility for reduced tax rates or exemptions.
At Fuster & Associates, we help international clients navigate every stage of the property purchase process in Spain. Our legal and tax specialists ensure that transactions are structured correctly, all applicable taxes are calculated accurately and buyers avoid costly mistakes.
If you are considering purchasing a property in the Valencian Community and would like to understand exactly how these tax changes affect your situation.
Contact Fuster & Associates today, our team will be happy to provide personalised legal and tax guidance to help you buy with confidence and peace of mind.
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