​At last some good news for buyers of Spanish property as Valencia cuts purchase tax

After months of gloomy headlines about rising costs, crazy government ideas to charge 100% tax (never going to happen) and rental crackdowns, there is finally some positive news for people looking to buy property in Spain.

The Valencian Community has announced a major cut to property purchase taxes, reducing the cost of buying a resale home from June 1, 2026.

Under the new rules, Property Transfer Tax — known as ITP — will fall from 10 per cent to 9 per cent.

The move is expected to be welcomed by overseas buyers targeting popular areas including Alicante, Torrevieja, Ciudad Quesada, Benijofar and Valencia.

And the savings are not small.

A buyer purchasing a €250,000 resale property currently pays €25,000 in transfer tax. From next week, that will drop to €22,500 — an instant saving of €2,500.

The tax cut mainly affects resale homes, which make up a large part of the Costa Blanca property market popular with British, Dutch, Belgian, German, French and other international buyers, retirees and investors.

There is also a smaller reduction for new-build purchases.

VAT on new homes will remain at 10 per cent, but Stamp Duty — known as AJD — (payable on new-build transactions) will be reduced slightly from 1.5 per cent to 1.4 per cent.

Property experts say the changes will make the already popular Valencian region even more attractive at a time when many buyers have been needlessly worried by negative stories surrounding Spain’s property market.

For anyone still dreaming of a place in the sun, this could be one of the most welcome Spanish property changes in years.