Lower Property Purchase Tax Coming to Costa Blanca Starting 1^st June 2026

A welcome change is on the horizon for anyone considering purchasing property along Spain’s Costa Blanca. From June 1, 2026, the regional government of the Valencian Community will introduce a reduction in Property Transfer Tax (ITP), lowering the standard rate from 10% to 9% for most resale property purchases.

A Boost for Buyers

The ITP (Impuesto sobre Transmisiones Patrimoniales) is one of the main taxes paid when buying a resale property in Spain, and it can represent a significant portion of the overall purchase cost. This upcoming reduction aims to ease that burden, making home ownership more accessible for both domestic and international buyers.

For those looking to purchase in the popular Costa Blanca locations, the savings could be noticeable. For example, a €300,000 resale property would see a tax saving of €3,000 under the new rate.

How the New Rates Work

The revised structure will apply primarily to properties valued up to €1 million, which will benefit from the reduced 9% rate. Higher-value properties may still fall under different tax brackets, but the majority of everyday buyers will benefit from the lower rate.

In addition, a small adjustment is expected to stamp duty (AJD), further contributing to reduced transaction costs.

Timing Matters

One key factor for buyers to keep in mind is timing. The applicable tax rate is determined by the date the purchase is completed before a notary. This means that transactions finalized before June 1, 2026, will still be subject to the current 10% rate, while those completed on or after that date will benefit from the reduction.

What This Means for the Market

This tax change is likely to stimulate activity in the Costa Blanca property market. Lower transaction costs often encourages buyers who may have been waiting on the sidelines, while also making the region even more appealing to overseas investors.

The Costa Blanca continues to attract interest thanks to its climate, lifestyle, and relative value compared to other Mediterranean destinations. With improved affordability, demand is expected to remain strong throughout 2026 and beyond.

A Reminder for Buyers

While the reduction in ITP is positive news, it’s important to remember that it is just one part of the overall purchase costs. Buyers should also factor in legal fees, notary costs, land registry charges, and-if applicable-mortgage expenses.

Seeking professional advice remains essential to ensure a smooth and well-informed purchase process.

This upcoming tax change represents a meaningful opportunity for buyers looking to enter the Costa Blanca property market, offering both immediate savings and long-term value in one of Spain’s most sought-after coastal regions.