Valencia Region ITP 2026: Transfer Tax Drops from 10% to 9% on 1 June

Breaking news: from 1 June 2026, the general Transfer Tax (ITP) rate in the Valencia Region drops from 10% to 9% on second-hand home purchases, under the new Law 5/2025 approved by the regional parliament. It is the first general cut to this tax in over a decade.

What is ITP and when do you pay it?

The Impuesto sobre Transmisiones Patrimoniales (ITP) is a regional tax charged on the purchase of second-hand homes (when the seller is a private individual). New-build homes pay VAT (10%) plus Stamp Duty instead. ITP is calculated on the Cadastral reference value or the deed price (whichever is higher).

It must be self-assessed within 30 working days from the date of the public deed using Form 600 of the Valencia Tax Agency.

The headline change: 10% to 9% from June 2026

• Until 31 May 2026: general rate of 10%.
• From 1 June 2026: general rate of 9%.
• Homes worth more than €1,000,000: increased rate of 11% is maintained.

Practical example: on a €250,000 home, the buyer will pay €22,500 instead of €25,000 — a direct saving of €2,500.

Reduced rates still in force in 2026

• 8%: primary residence with declared value up to €180,000.
• 6%: primary residence bought by under-35s with limited income.
• 4%: large families, persons with disability ≥65% or victims of gender-based violence.
• 3%: officially protected housing (VPO).

These rates require the property to be used as the buyer's habitual residence for at least 3 years.

How does this affect non-resident buyers?

• The same ITP rate applies to residents and non-residents: 9% (or 11% above €1M).
• Reduced rates do NOT apply to non-residents, since they require the home to be your habitual residence in Spain.
• ITP adds to the acquisition cost, reducing your future capital gain when you sell (Modelo 210).
• After the purchase, you must file Modelo 210 imputed income every year.

Other taxes to consider when buying in Valencia

• Stamp Duty (AJD): only on new-build (1.5% in the Valencia Region).
• Notary and Land Registry: between €600 and €1,500.
• Municipal capital gains (plusvalía): paid by the seller.
• IBI council tax: usually prorated between buyer and seller.

Conclusion

Cutting ITP from 10% to 9% in the Valencia Region is the best tax news for second-hand home buyers in 2026. If you sign your deed after 1 June 2026, you will automatically benefit from the new rate. At SpainTaxForm we help you with the Modelo 210 after your purchase, managing your non-resident tax obligation 100% online.