Property purchase tax in the Valencia region (ITP and AJD), including the 2026 reduction

Good news if you are buying on the Costa Blanca: from 1 June 2026 the Valencia region cut its resale purchase tax (ITP) from 10% to 9%, and its stamp duty (AJD) from 1.5% to 1.4%. In practice, buying costs a little less than it did a few months ago. Here is a plain-language look at what these taxes are, how much you pay, when, and who can benefit from extra reductions.

By Noel Picou and the team at Team Picou, RE/MAX Costa Blanca. General information, not tax advice, we introduce you to bilingual gestores and lawyers.

What ITP and AJD are

When you buy a home in Spain you pay a regional purchase tax. Which one applies depends on whether the property is second-hand or a new-build.

• ITP (transfer tax): paid when you buy a resale (second-hand) home. It is calculated on the purchase price.
• AJD (stamp duty): the tax on notarial documents, mortgage deeds and new-build purchases.

These are the main part of the “buying costs” that sit on top of the price, alongside notary, land registry and gestor fees. You can see the full picture in our guide to the hidden costs of buying in Spain.

Resale versus new-build

The rule is simple:

• Resale (second-hand) home: you pay ITP. No VAT.
• New-build (first sale from the developer): you pay VAT (IVA) at 10% plus AJD at 1.4%. No ITP.

It matters which category your dream home falls into, because it changes both the tax and the total cost. On a new-build it also pays to understand the developer’s payment schedule.

The June 2026 reduction, with examples

From 1 June 2026, the Valencia region applies lower rates:

• Resale ITP: from 10% to 9%. Homes above 1,000,000 EUR are taxed at 11%.
• AJD: from 1.5% to 1.4% (applies to new-builds and to mortgage deeds).

Two real examples of what this means:

• A 350,000 EUR resale: cutting ITP from 10% to 9% saves around 3,500 EUR in tax.
• A 400,000 EUR AJD base: moving from 1.5% to 1.4% saves around 400 EUR.

Small as a percentage, real in euros. On a typical purchase, the ITP cut is usually the more noticeable saving.

Who may qualify for extra reductions

Beyond the general rate, there may be bonificaciones (reductions) that lower the tax further in specific cases:

• Young buyers.
• Large families.
• People with a disability.
• Other special cases set out in regional rules.

Each reduction has its own requirements (age, maximum property value, use as main home, and so on). They are not applied automatically: they must be claimed correctly. That is why it pays to review them with a gestor before signing, especially if this is your first home or you fit one of these profiles.

When and how you pay

ITP or AJD is settled after you sign the deed before the notary, usually within 30 working days. In practice, your gestor or lawyer prepares and files the correct form and makes the payment from the funds you have set aside.

Tip: build these taxes into your budget from the start, not at the end. Together with notary, registry and gestor fees, buying costs come to a percentage of the price that is worth knowing clearly before you make an offer.

How Team Picou helps

We are not lawyers or tax advisers, and we do not pretend to be. What we do is:

• Tell you clearly whether a home is resale or new-build and which tax applies.
• Give you an honest estimate of total buying costs before you commit.
• Introduce you to bilingual gestores and lawyers who correctly apply any reductions you are entitled to.

When you are ready to take the step, we guide you with the real numbers in your language. Browse properties or, if you are selling, sell your home. And to keep learning: buying in your own name or through a company and the 2026 guide for foreign buyers.

Disclaimer: general educational information, not legal or tax advice. Rates and reductions change and depend on your personal situation. Always confirm current rates and your own case with a qualified lawyer or gestor. Updated: July 2026.