Property Purchase Tax on the Costa Blanca Has Decreased

Buying secondary real estate on the Costa Blanca has become slightly more advantageous. From June 1, 2026, the standard property transfer tax (ITP) rate in the Valencian Community has been reduced from 10% to 9%.

The new rate applies to secondary property transactions registered from this date. If the property's value exceeds 1 million euros, the rate remains at 11%.

How Much You Can Save

The savings amount to 1% of the tax base:

• Property worth €150,000: saving €1,500;
• Property worth €250,000: saving €2,500;
• Property worth €400,000: saving €4,000;
• Property worth €500,000: saving €5,000.

For example, previously, when buying an apartment for €250,000, the standard ITP was €25,000. Now, with a 9% rate, the buyer will pay €22,500.

How the Tax Is Calculated

It is important to note that the ITP is not always calculated solely on the price stated in the contract. The tax base may be the cadastral reference value of the property if it is higher than the purchase price. The tax authority compares the transaction value, the declared value, and the valor de referencia, applying the highest of these amounts.

The buyer pays the tax. The form Modelo 600 is used for registration, and the standard deadline for filing the declaration in the Valencian Community is one month from the date of the transaction.

Does the Reduction Affect New Builds?

No. The ITP rate primarily applies when purchasing secondary real estate from a private owner.

When buying new housing from a developer, the buyer usually pays VAT at a 10% rate and also the tax on documented legal acts (AJD). Therefore, the purchase budget for new builds is calculated differently.

In addition to taxes, the buyer must consider expenses for the notary, property registration, legal support, mortgage arrangement, and banking services.

The ITP reduction is especially noticeable when purchasing mid- to high-priced properties. This allows saving several thousand euros in the budget, which can be used for renovations, furnishing, or decorating the property.

Before signing the contract, it is important to calculate the full cost of the transaction in advance and check the tax base of the property.

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