Lower Taxes in the Comunidad Valenciana from 1 June 2026 – What You Need to Know as a Property Owner or Buyer in Spain

If you are thinking of buying a property in the Comunidad Valenciana, or you already own one and are planning a transaction, there is an important tax change you should know about: from 1 June 2026, two tax reductions come into force that can mean a real and significant saving.

The legal basis is Ley 5/2025, de 30 de mayo, published in the Official Gazette of the Generalitat Valenciana (DOGV) on 31 May 2025. Below we explain in practical terms what is changing and how much you can save.

Which taxes are being reduced?

1. ITP — Property Transfer Tax (purchase of a second-hand property)

ITP is the tax paid by the buyer when acquiring a resale property (not a new build). Until now, the Comunidad Valenciana has applied a general rate of 10% of the purchase price. From 1 June 2026, this rate drops to 9%, provided the property value does not exceed €1,000,000.

Properties valued above one million euros retain the rate of 11%, unchanged.

2. AJD — Stamp Duty (mortgages, new-build declarations and other notarial deeds)

AJD applies to notarial deeds that must be registered in the Land Registry: mortgages, new-build declarations, plot divisions, property groupings, and so on. The current rate is 1.5%. From 1 June 2026 it falls to 1.40%.

This reduction applies to all registrable notarial deeds, not just purchase contracts — making it particularly relevant for anyone taking out a mortgage or carrying out building works on their property.

How much can you save in real figures?

Two practical examples:

Example 1: Property priced at €200,000

• ITP today (10%): €20,000
• ITP from June 2026 (9%): €18,000
• Saving: €2,000

With a mortgage of, say, €140,000:

• AJD today (1.5%): €2,100
• AJD from June 2026 (1.40%): €1,960
• Additional saving: €140

Example 2: Property priced at €400,000

• ITP today (10%): €40,000
• ITP from June 2026 (9%): €36,000
• Saving: €4,000

With a mortgage of €250,000:

• AJD today (1.5%): €3,750
• AJD from June 2026 (1.40%): €3,500
• Additional saving: €250

In summary: the ITP reduction alone could save you between €2,000 and €4,000 by signing after 1 June 2026 — in the price range most common among international buyers on the Costa Blanca.

When do the new rates apply?

The new rates apply exclusively to transactions signed before a notary on or after 1 June 2026. If you sign before that date, the current rates apply (ITP 10%, AJD 1.5%). The decisive date is when the purchase deed is signed before the notary — not the date of the private contract or the deposit payment.

If you have an ongoing deal with some flexibility on timing, it may be worth coordinating the signing date with your lawyer to take advantage of the reduction.

Who benefits from the tax cut?

All buyers of a resale property in the Comunidad Valenciana (provinces of Alicante, Valencia and Castellón) with a purchase price not exceeding one million euros. Nationality makes no difference: the reduction applies equally to residents and non-residents, EU citizens and buyers from outside the EU.

What should you do now?

If you have already found your dream property or are in the negotiation phase, now is the time to start planning. Sound legal advice will allow you to optimise the timing of the signing, ensure all documents are in order and avoid any unpleasant last-minute surprises. The tax cut is a real opportunity — but only if the transaction is handled correctly.

Do you have questions about your purchase or how these changes affect you?
At Colás Abogados we have been advising international buyers on the Costa Blanca for over 18 years. Contact us with no obligation:

• 📧 info@colas-abogados.com
• 📱 +34 629 549 430 (also WhatsApp)
• 🌐 www.colas-abogados.com

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