There’s an upcoming reduction in the ITP tax in the Valencian Community coming on June 1, 2026. The Valencian regional government has passed a landmark reform that will reduce the Property Transfer Tax (ITP) for second-hand property purchases. The Stamp Duty (AJD), applicable on new build purchases will also reduce slightly, from 1.5% to 1.4% on June 1 as well.
What Is the ITP Tax?
ITP (Impuesto de Transmisiones Patrimoniales) is the tax you pay when buying a resale (second-hand) property in Spain. It is a regional tax, meaning the rate varies depending on which autonomous community you buy in. Importantly, ITP only applies to properties bought from a private seller — if you’re buying a brand-new property directly from a developer, you pay VAT (IVA) at 10% instead.
How Much Could You Save?
The difference might sound small, but it translates to real money:
| Property Price | ITP at 10% (current) | ITP at 9% (from June 2026) | Saving |
|---|---|---|---|
| €200,000 | €20,000 | €18,000 | €2,000 |
| €300,000 | €30,000 | €27,000 | €3,000 |
| €500,000 | €50,000 | €45,000 | €5,000 |
Are There Other Reduced Tax Rates For Home Purchases?
Yes — the Valencian Community already offers reduced ITP rates for certain buyer profiles, and these continue to apply. The main ones include:
- Young buyers (under 35): Reduced rates of 6% or 8%, subject to income limits and property value caps
- Large families: Rates as low as 3% or 4% for qualifying primary residences
- People with disabilities (33%+): Rates of 3% or 4%, with no income restrictions
- Rural/depopulation zones: A 50% reduction on ITP for properties in municipalities at risk of depopulation
These reduced rates come with conditions (income thresholds, property use requirements, etc.), so always check your eligibility with a qualified tax adviser.
Find out more on taxes and fees on house purchases in Spain..