Costa Blanca North property buyers set to save thousands as Valencia cuts home purchase tax

People buying a resale property on the Costa Blanca can now save thousands of euros after the Valencian government reduced Property Transfer Tax (ITP) from 10 per cent to 9 per cent.

The tax cut took effect on June 1, 2026, and applies to most second-hand property purchases across the Valencian Community, including popular Costa Blanca North destinations such as Dénia, Jávea, Moraira, Benissa and Calpe. For buyers facing rising property prices and higher borrowing costs, the change could significantly reduce the upfront cost of purchasing a home in Spain.

Buying a Costa Blanca home just became cheaper

Property Transfer Tax, known in Spain as ITP, is paid when purchasing a resale property from a private seller.

Until now, most buyers in the Valencian Community paid 10 per cent of the purchase price in tax. Under the new rules, that rate has been reduced to 9 per cent for properties valued at up to €1 million.

Properties worth more than €1 million will continue to be taxed at 11 per cent.

The regional government has also reduced the AJD stamp duty rate from 1.5 per cent to 1.4 per cent, creating further savings for some buyers.

How much could you actually save?

The savings may sound small, but they add up quickly.

Someone purchasing a €300,000 apartment or villa will now pay €27,000 in ITP instead of €30,000, saving €3,000.

For a €500,000 property, the saving rises to €5,000.

In many Costa Blanca North towns, where homes regularly sell for between €300,000 and €700,000, the reduction could cover legal fees, furniture packages, renovations or moving costs.

Why this matters for buyers in Dénia, Jávea and Moraira

The Costa Blanca remains one of Spain’s most popular destinations for international property buyers.

Lower transaction costs could make purchasing a home more affordable and help buyers stretch their budgets further in competitive markets such as Dénia, Jávea, Moraira, Benissa and Calpe.

Local estate agents believe the move could encourage more sales activity throughout the remainder of 2026.

Do I qualify for the lower tax rate?

If you are buying a resale property in the Valencian Community and the purchase is completed under the new rules, the 9 per cent rate will generally apply.

However, buyers should always check with their lawyer or conveyancer to confirm exactly which tax rate applies to their transaction.

Some groups, including certain young buyers and large families, may still qualify for even lower reduced rates.

What should Costa Blanca buyers do now?

Anyone currently house-hunting should review their budget calculations to reflect the lower tax bill.

If you are close to completing on a property purchase, speak with your legal representative to ensure the new rate is being applied correctly.

The savings could free up thousands of euros that can be put towards furnishing, renovating or settling into your new home.

Will property prices now rise?

The tax cut does not directly affect property prices, but lower buying costs can increase demand.

Whether prices rise further will depend on supply, interest rates and buyer demand across the Costa Blanca market.

For now, buyers have a clear financial advantage that was not available just a few weeks ago.