Property Transfer Tax Reduced in the Valencian Community
A New Opportunity for Property Buyers in Spain
From 1st June 2026, the Property Transfer Tax (ITP) in the Valencian Community has officially been reduced from 10% to 9%, marking an important development for both national and international property buyers.
This tax reduction reinforces the Valencian Community’s position as one of Spain’s most attractive destinations for real estate investment, second homes, and permanent relocation.
Meanwhile, the neighbouring Region of Murcia continues to maintain its already competitive 8% transfer tax, offering another highly appealing option for buyers seeking value on the Spanish Mediterranean coast.
What Is the Property Transfer Tax (ITP)?
The Impuesto de Transmisiones Patrimoniales (ITP) is the tax paid when purchasing a resale property in Spain. It applies to second-hand homes rather than new-build properties, which are subject to VAT instead.
The tax is calculated as a percentage of the purchase price and represents one of the main acquisition costs buyers should consider when purchasing a property in Spain.
With this latest adjustment:
- Valencian Community: reduced from 10% to 9%
- Murcia Region: remains at 8%
Although a 1% reduction may seem modest at first glance, it can translate into substantial savings for buyers.
What Does the Reduction Mean in Real Numbers?
For example:
| Property Price | Old ITP (10%) | New ITP (9%) | Savings |
|---|---|---|---|
| €200,000 | €20,000 | €18,000 | €2,000 |
| €350,000 | €35,000 | €31,500 | €3,500 |
| €500,000 | €50,000 | €45,000 | €5,000 |
These savings can help buyers allocate more budget toward furnishing, renovations, legal costs, or lifestyle improvements.
Why This Matters for International Buyers
Spain continues to attract buyers from across Europe and beyond thanks to its:
- Mediterranean climate
- High quality of life
- Excellent healthcare infrastructure
- Strong rental demand
- International airports and connectivity
- Attractive property prices compared to many Northern European markets
The reduction in the Valencian Community further strengthens the region’s competitiveness against other Mediterranean destinations.
Popular areas such as Valencia Province, Costa Blanca, Alicante, and surrounding coastal towns continue to experience strong interest from buyers seeking holiday homes, retirement properties, and investment opportunities.
Murcia Continues to Offer Excellent Value
While Valencia has reduced its rate, the Murcia region continues to stand out with its 8% transfer tax, one of the most attractive rates in Spain.
Combined with:
- affordable property prices,
- growing infrastructure,
- golf resorts,
- coastal developments,
- and increasing international demand,
Murcia remains an excellent option for buyers looking for maximum value and lower acquisition costs.
A Positive Signal for the Spanish Property Market
The tax reduction in Valencia can also be interpreted as a positive institutional signal supporting the property market and encouraging investment into the region.
Lower transaction costs often stimulate market activity by:
- increasing buyer confidence,
- improving affordability,
- accelerating purchasing decisions,
- and attracting foreign investment.
For many buyers considering a property purchase in Spain, this change may be the ideal moment to explore opportunities before demand increases further.
Sunland’s View
At Sunland, we see this tax reduction as another strong indicator of the long-term attractiveness of the Spanish Mediterranean property market.
Whether clients are searching for:
- a holiday home,
- a permanent residence,
- a retirement property,
- or an investment opportunity,
both the Valencian Community and Murcia region continue to offer exceptional lifestyle and investment potential.
With lower purchase taxes now available in Valencia and already attractive conditions in Murcia, buyers can benefit from even greater value when investing in Spanish real estate.
Thinking About Buying Property in Spain?
If you are considering purchasing a property in the Valencian Community or Murcia, our team can guide you through every stage of the process — from selecting the right property to understanding taxes, legal procedures, and financing options.
The Spanish property market continues to evolve positively, and these latest tax conditions create new opportunities for smart buyers looking toward the Mediterranean lifestyle.
Share
