Lower taxes on property purchases on the Costa Blanca. New rates effective June 1, 2026.

Good news for anyone considering purchasing property on the Costa Blanca. Since 1 June 2026, lower rates of two taxes relevant to property buyers — ITP and AJD — have been in force in the Valencian Community. These changes can result in tangible savings, particularly for properties in the mid- and upper-price segments. When purchasing an apartment, house or villa, the difference can amount to several or even tens of thousands of euros.

Resale property purchases – ITP reduced from 10% to 9%

One of the most important changes concerns Impuesto sobre Transmisiones Patrimoniales – ITP, a tax primarily levied on the purchase of resale properties. Since 1 June 2026, the standard ITP rate in the Valencian Community has been reduced from 10% to 9%. This means that when purchasing a property worth €500,000, the tax calculated at the standard rate is now €45,000 instead of the previous €50,000. The saving therefore amounts to €5,000. For a property priced at €750,000, the difference increases to €7,500.

For buyers, these are funds that can remain in the budget and be allocated, for example, to furnishing the property, interior design, landscaping a terrace or garden, or covering other expenses associated with purchasing a second home in Spain. The change was introduced by Law 5/2025 of the Generalitat Valenciana. Under Article 33 of the law, from 1 June 2026 the standard tax rate on the transfer of real estate for consideration is 9%.

What about properties worth more than €1 million?

For properties valued at more than €1 million, the legislator retained the existing ITP rate of 11%. This is particularly relevant on the Costa Blanca, where in locations such as Moraira, Altea, Jávea, Benissa and the Alicante area, a significant proportion of villas and premium properties fall within this price range. When planning a purchase, it is therefore worth considering not only the asking price of the property, but also all taxes and transaction costs associated with the acquisition.

Lower AJD on purchases of new-build properties

The second change concerns Actos Jurídicos Documentados – AJD, a tax applied to certain legal acts and documents. Since 1 June 2026, its general rate in the Valencian Community has been reduced from 1.5% to 1.4%. AJD is relevant, among other situations, when purchasing new-build properties from a developer, where the transaction is subject to VAT and, where applicable, additionally to AJD. A difference of 0.1 percentage points may appear small at first glance, but in larger transactions it still translates into a tangible saving. With a taxable base of €500,000, the difference is approximately €500, while at €800,000 it is approximately €800.

When did the new rates take effect?

The new regulations came into force on 1 June 2026. Under the law, the new rates apply to taxable events arising from that date onwards. In practice, in a standard property purchase, the timing of the transaction and its formal completion is crucial. Therefore, buyers who completed the purchase of a Costa Blanca property on or after 1 June 2026 can already benefit from the new rates, provided that no other special rules or preferential tax rates apply to the transaction.

How much can you save when buying property on the Costa Blanca?

The most noticeable change concerns the resale market.

For example:

• property priced at €300,000 – a saving of approximately €3,000,
• property priced at €500,000 – a saving of approximately €5,000,
• property priced at €700,000 – a saving of approximately €7,000,
• property priced at €900,000 – a saving of approximately €9,000.

When purchasing a second home or investment property, these are amounts worth taking into account when determining the overall transaction budget.

Is the Costa Blanca now even more attractive to buyers?

The tax reductions do not, of course, change the fundamental criteria that should guide a property purchase. Location, quality of the development, access to infrastructure, potential for capital appreciation and liquidity within a given market segment remain significantly more important than the tax rate itself. Lower transaction costs are, however, an additional argument for those who have been considering purchasing a house or apartment on the Costa Blanca for some time. With a well-selected property, several thousand euros remaining in the budget can be used for furnishing the home, renovations, preparing the property for rental, or simply reducing the overall cost of the investment.

The Costa Blanca has long attracted international buyers thanks to its combination of climate, infrastructure, access to the Mediterranean Sea and a highly diverse property market — from seaside apartments to luxury villas with private swimming pools. Since 1 June 2026, lower standard tax costs on many property transactions can also be added to that list of advantages. If you are considering purchasing a property on the Costa Blanca, we invite you to contact us. We will present currently available properties and help you estimate the costs associated with purchasing a specific property, so that you have as complete a picture as possible of the total budget required before making your decision.

— Joanna Czapska

Source: Ley 5/2025, de 30 de mayo, de medidas fiscales, de gestión administrativa y financiera, y de organización de la Generalitat