Property Tax Cuts in Valencia from June 2026: A New Opportunity for Buyers

From 1 June 2026, buying property in the Valencian Community becomes noticeably more attractive. A set of tax changes—led by a reduction in the Property Transfer Tax—lowers the cost of purchasing resale homes and strengthens the region’s appeal for both lifestyle buyers and investors.

At Larrosa&Co Properties, we see this as more than a minor adjustment. It’s a shift that makes entering the Costa Blanca market easier at a time when demand continues to grow.

A Lower ITP: Immediate Savings for Buyers

The most important change is the reduction of the Impuesto de Transmisiones Patrimoniales (ITP), the tax paid when purchasing a second-hand property. Until now, buyers typically paid 10%. From June 2026, that general rate drops to 9% for properties up to one million euros, while higher-value properties remain taxed at 11%.

This single percentage point makes a real difference. On a typical property purchase, the savings can reach several thousand euros—money that buyers often reinvest into furnishing, renovation, or simply keeping as part of their financial planning. For many of our clients, this reduction improves affordability enough to move forward with a purchase sooner rather than later.

Additional Relief Through Lower Transaction Costs

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The ITP reduction does not come alone. The tax on notarised documents, known as Actos Jurídicos Documentados (AJD), has also been slightly reduced. While the difference is more modest, it contributes to lowering the overall cost of buying a home, particularly for those financing their purchase with a mortgage.

Taken together, these changes mean that the total upfront investment required to buy property in the Valencian Community is now more competitive compared to previous years.

A Region That Rewards Certain Buyers Even More

One of the strengths of the Valencian tax system is that it already includes favourable conditions for specific buyer profiles, and these remain in place. Younger buyers, families, and certain other groups can still access reduced rates that go below the new general 9%.

This creates a layered system where some buyers benefit twice: first from existing reductions, and second from the overall lowering of the standard rate. The result is a market that is increasingly accessible, particularly for those planning a permanent move or long-term investment.

Why This Matters on the Costa Blanca

The Costa Blanca has long been one of Spain’s most desirable destinations, offering a combination of climate, lifestyle, and property value that is hard to match. With these new tax conditions, its appeal becomes even stronger.

Lower purchase costs tend to stimulate demand. As more buyers enter the market, especially international clients looking for second homes or relocation opportunities, well-priced properties can move quickly. In areas such as Torrevieja, Orihuela Costa, and Alicante, this may translate into increased activity and gradual price growth over time.

For buyers, this creates an important dynamic: while taxes have gone down, property values may not remain as accessible indefinitely.

A Strategic Moment to Buy

From our perspective at Larrosa&Co Properties, this reform opens a clear window of opportunity. Buyers can now enter the market with reduced transaction costs, while still benefiting from current property prices before any broader upward pressure takes effect.

In practical terms, this means more value for your investment today, combined with stronger long-term potential.

Your Next Step

Whether you are searching for a holiday apartment by the sea, a golf property, or a permanent home under the Mediterranean sun, these tax changes make 2026 an especially interesting moment to act.

At Larrosa&Co Properties, we guide our clients through every step of the buying process, ensuring not only that you find the right property, but also that you fully benefit from the new fiscal landscape.

If you are considering buying on the Costa Blanca, now is the time to explore your options.

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