Purchase tax reduced from 10% to 9%
#taxreduction#comunidadvalenciana#immoalicante#jlimmobilier
Purchase tax reduced from 10% to 9% in the Valencian Community: excellent news for property buyersThe Costa Blanca property market is benefiting from a long-awaited tax reform: starting June 1, 2026, the general rate of Property Tax (ITP - Impuesto de Transmisiones Patrimoniales) will officially decrease from 10% to 9% in the Valencian Community. This measure primarily concerns the purchase of resale properties and represents significant savings for buyers, whether they are Spanish residents or foreign investors.
For prospective homeowners looking to buy an apartment or villa in Alicante, Torrevieja, Benidorm, or Jávea, this tax reduction presents a particularly attractive opportunity. According to J&L Immobilier, an international real estate specialist on the Costa Blanca, this reform should further boost the market and encourage many French-speaking buyers to realize their property projects in Spain.
The ITP (Property Transfer Tax) is the tax paid by the buyer when purchasing an existing property in Spain. Unlike new homes, which are subject to Spanish VAT (IVA), resale properties are taxed through this regional tax. Until now, the Valencian Community applied a relatively high rate of 10%. The Valencian government has now decided to reduce this tax burden to facilitate access to homeownership and boost the attractiveness of the regional property market.
In concrete terms, this 1% reduction can represent savings of several thousand euros. Let's take the example of a property purchased for €250,000 in Alicante:
Old rate of 10%: €25,000 ITPNew rate of 9%: €22,500 ITP
The savings therefore amount to €2,500. For a property worth €500,000, the savings amount to €5,000, which can cover a significant portion of notary fees, administrative costs, or even furniture.
According to the advisors at J&L Immobilier Costa Blanca, this reform comes at a particularly opportune time. After several years of strong international demand, the region continues to attract French, Belgian, Swiss, and Luxembourgish buyers drawn by the Mediterranean climate, the quality of life, and the still competitive prices of Spanish real estate.
The reduced property tax (ITP) will apply to properties valued at less than €1 million. Above this threshold, a higher rate will remain applicable for high-end and luxury properties.
The reform also includes reduced rates for certain buyer profiles. Young people under 35 purchasing their primary residence will be eligible for an even more advantageous reduced rate, subject to certain income requirements. Specific discounts are also available for large families and people with disabilities.
For foreign investors, this reduction directly improves the overall profitability of a property purchase. By lowering acquisition costs, buyers have a larger budget for renovating, furnishing, or generating income from their rental investment. This is a key point highlighted by J&L Immobilier Alicante, which assists numerous international clients with their property purchase projects on the Costa Blanca.
Cities like Alicante, Torrevieja, Orihuela Costa, Benidorm, and Calpe remain particularly sought after for second homes and rental investments. Thanks to this new, more advantageous tax system, the Valencian Community is becoming even more competitive compared to other Spanish regions.
Even with this reduction in property tax, it remains essential to thoroughly prepare your property purchase in Spain. In addition to taxes, buyers must budget for notary fees, registration fees, potential bank charges, and the administrative procedures related to obtaining a Spanish NIE (Foreigner Identification Number). Working with a specialized agency like J&L Immobilier International helps secure the entire purchase process and avoid unpleasant surprises.
With this tax reform, 2026 could become a particularly favorable year for investing in real estate in the Valencian Community. For buyers looking to enjoy the Costa Blanca sunshine while making an attractive investment, the reduction of the property tax (ITP) to 9% is excellent news.
Fri 22nd May 2026
