ITP in the Comunidad Valenciana in 2026: purchase taxes explained

ITP in the Comunidad Valenciana in 2026: the 9% and 11% tax on resales, VAT and AJD on new builds, the reference value, reduced rates, and how and when you pay.

Last checked 17 October 2026

What you will learn

Which tax applies: ITP on a resale or VAT and AJD on a new build
Why the reference value can raise the tax you pay
Who qualifies for a reduced rate, and when the tax is due

Buy a resale home on the Costa Blanca North and the main tax is the transfer tax, ITP (Impuesto sobre Transmisiones Patrimoniales). For ITP Comunidad Valenciana 2026, one date matters most: for purchases from 1 June 2026 the general rate is 9%, and 11% when the property is worth more than one million euros. A new home bought from the developer pays VAT at 10% and stamp duty (AJD) at 1.4% instead. Below we explain which tax applies, what it is calculated on, who can pay a reduced rate, and how and when it is paid.

ITP on resales: 9% or 11%

The rates come from Ley 5/2025 of the Generalitat Valenciana, which rewrote the transfer tax article of the Valencian tax law for taxable events from 1 June 2026. The rule itself is short: 9% on the purchase of a property, and 11% when the value of the property is above one million euros. What counts is the date the tax falls due, which for most buyers is the day the deed is signed at the notary.

The 11% is not charged only on the part above one million. Once the value passes that line, the whole value is taxed at 11%, so the step is large. As an illustration, a resale valued at exactly €1,000,000 would pay €90,000, and one valued at €1,050,000 would pay €115,500. The law also treats purchases of the same registered property from the same seller within three years as a single purchase for this rate, so splitting a purchase into parts does not avoid it.

The buyer pays the ITP. The national transfer tax law says so whatever the contract between buyer and seller states.

The tax base: price or reference value

The tax is not always calculated on the price you pay. Under the national transfer tax law, the value of a property is its reference value (valor de referencia), a figure set each year by the Catastro. If the price in the deed is higher than the reference value, the price is the tax base. If the reference value is higher, the reference value is the base, even though you paid less.

You can look up the reference value of a property on the Catastro reference value page, which publishes the values year by year. Check it before you agree a price, because it can change your budget. If you think the value is wrong, the law lets you challenge it only when you ask for a correction of your own self-assessment or appeal a tax assessment; the Catastro then issues a binding report that confirms or corrects it.

New builds: VAT and AJD

When you buy a new home from the developer, the first sale of the finished building is normally subject to VAT, not ITP. Under the Spanish VAT law, homes pay the reduced rate of 10%, and this includes up to two garage spaces and the annexes sold with the home. Later sales of the same house are resales and pay ITP.

On top of VAT comes stamp duty, AJD (Actos Jurídicos Documentados), charged on the notarial deed. In the Comunitat Valenciana the general rate is 1.4% for deeds from 1 June 2026. A lower rate of 0.1% applies to the deed of a home that becomes the buyer's main residence, using the meaning of main residence in Spanish income tax, so a holiday home pays the 1.4%.

If you buy with a mortgage, the stamp duty on the mortgage deed is not yours to pay. The transfer tax law makes the lender the taxpayer for a mortgage loan deed.

Reduced rates and who qualifies

The Valencian law has lower ITP rates, but almost all of them depend on the home becoming the buyer's main residence and on personal conditions. The consolidated Valencian tax law sets them out:

6% or 8% for buyers under 35. A first main home for a buyer under 35 whose income is within the limits in the law: 6% when the value is up to €180,000 and 8% above it, on the share that the young buyer acquires.

3% or 4% for some families and buyers. The main home of a large or single-parent family within the income limits, of a person with a recognised disability of 65% or more (or an intellectual or mental disability of 33% or more), or of a woman who is a victim of gender violence within the income limits: 3% when the value is up to €180,000 and 4% above it.

4% on agricultural land. Individuals who buy land that legally qualifies as an agricultural plot (parcela con vocación agraria) can pay 4%, if the land stays in farming use for five years and is entered in the farm register.

To use any of these rates, the purchase must be in a public deed. For most foreign buyers of a holiday home they do not apply, because the home is not their main residence under Spanish income tax rules. If you are moving here to live, ask your adviser early whether you qualify, because the reduced rate is claimed in the self-assessment itself.

When and how the tax is paid

The self-assessment is filed with the Valencian tax agency (Agència Tributària Valenciana) on its transfer tax form, model 600, within one month of the purchase, under the Valencian tax law. In practice your lawyer or the notary's office often prepares and files it, and you provide the funds before or at completion.

There is a second reason to pay on time. Under article 254 of the Mortgage Law, the Land Registry will not register your purchase until you prove that the tax has been paid. Registration is what protects your ownership against third parties, so the tax receipt is part of completing the purchase.

These taxes are the largest cost on top of the price, but not the only one. Notary, registry and lawyer's fees come too, and our guide to what it really costs to buy a house in Spain lists them in order. If you are borrowing, read what the latest interest rate rises mean for buyers. If you are choosing between a new home and an older one, see new build or resale in Spain.

The Valencian rules changed by law in 2025 and again in 2026, and each purchase has details that change the figure: the reference value, whether the home will be your main residence, and who the seller is. Treat this guide as a map, not as a calculation for your purchase, and have the final figure confirmed before the deed by the notary and an independent tax adviser.

Practical step: before you make an offer, look up the property's reference value and work out the tax on the higher of that value and your price, at 9% or 11% for a resale, or 10% VAT plus 1.4% AJD for a new build. Then compare like with like across the investment properties on the Costa Blanca North.

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Across the coast

Written by Nicolas Strebel.