Why Buying a Resale Property on the Costa Blanca Just Became More Affordable

June 2026

There is some welcome news for anyone considering a property purchase on the Costa Blanca.

From 1 June 2026, the Valencian Community reduced the general Property Transfer Tax (ITP) rate on resale properties from 10% to 9%. Whilst a reduction of one percentage point may not sound dramatic, it can make a noticeable difference to the overall cost of buying a property in Spain.

For many buyers, it means keeping thousands of euros in their pocket that can instead be spent on furnishing a new home, renovating a property or simply reducing the total cost of moving.

More importantly, it is another reminder that understanding the full costs of buying is just as important as finding the right property.

What Is Property Transfer Tax?

When purchasing a resale property in Spain, buyers pay Property Transfer Tax, known as Impuesto sobre Transmisiones Patrimoniales or ITP.

This tax applies to second hand properties and is paid by the buyer following completion of the purchase.

New build properties are taxed differently and are generally subject to VAT (IVA) and Stamp Duty (AJD) rather than ITP. If you're still deciding which option is right for you, our article on New Build vs Resale Property on the Costa Blanca compares both routes to ownership on the Costa Blanca.

What Changed In June 2026?

The reduction was introduced by the Generalitat Valenciana and came into effect on 1 June 2026.

The standard rate of ITP on most resale property purchases was reduced from 10% to 9%, helping to lower one of the largest upfront costs buyers face when purchasing a home in the Valencian Community.

Whilst a one percent reduction may seem small, the financial impact can be significant.

How Much Could You Save?

For many buyers, that saving can cover legal fees, furniture packages, moving costs or property improvements.

Good News For Buyers, Especially International Purchasers

Many buyers focus primarily on the purchase price of a property, but the reality is that buying costs can add a significant amount to the overall budget.

If you're financing your purchase, it's worth understanding the wider costs involved. Our Costa Blanca Mortgage Guide explains lending criteria, buying costs and key considerations for both residents and non residents purchasing property in Spain.

The reduction in ITP means buyers can retain more of their budget for:

• Furniture and appliances
• Air conditioning upgrades
• Legal fees
• Moving expenses
• Community fees
• Home improvements

For international buyers relocating permanently or purchasing a holiday home, these savings can make a real difference.

What About New Build Properties?

The new 9% rate applies specifically to resale properties.

New build homes continue to be subject to VAT (IVA) and Stamp Duty (AJD), meaning the tax structure differs from that of resale purchases.

Buyers interested in modern developments can also browse our latest new build properties on the Costa Blanca which continue to attract strong demand from overseas purchasers seeking energy efficient homes and contemporary designs.

The Southern Costa Blanca Continues To Offer Excellent Value

Whilst tax changes naturally attract attention, they are only one part of the bigger picture.

The Southern Costa Blanca remains one of Spain's most attractive property markets for international buyers thanks to its climate, accessibility, lifestyle and relative affordability.

Recent market analysis continues to show strong demand across both new build and resale sectors. Our article The Costa Blanca Property Market: What the Data Is Telling Us explores some of the key trends currently shaping the market.

Areas such as Ciudad Quesada, Benijófar, Guardamar del Segura, Villamartín and La Finca Golf continue to attract buyers looking for sunshine, lifestyle and value for money.

A Point Worth Remembering

The applicable tax rate is determined by the completion date at the notary, not the reservation date.

Buyers should always seek independent legal and tax advice before proceeding with a purchase, particularly where reduced rates or special circumstances may apply.

Final Thoughts

The reduction in Property Transfer Tax from 10% to 9% is undoubtedly positive news for buyers across the Costa Blanca.

Although it may appear to be a relatively small adjustment, it translates into real savings and helps reduce one of the largest costs involved in purchasing a resale property.

With lower purchase costs, continued international demand and a wide range of resale properties available across the Costa Blanca, the latest tax reduction is another positive signal for buyers considering a move to Spain in 2026.

Recent market data continues to highlight the region's long term appeal for both lifestyle buyers and investors.

If you are considering buying a property on the Costa Blanca and would like a clear understanding of the total costs involved, our team would be happy to guide you through every stage of the process.

Frequently Asked Questions

What is ITP in Spain?

ITP, or Property Transfer Tax, is the tax paid when purchasing a resale property in Spain. The tax rate varies between regions.

What is the ITP rate in the Valencian Community?

From 1 June 2026, the general ITP rate for most resale property purchases in the Valencian Community is 9%.

Does the 9% rate apply to new build properties?

No. New build properties are generally subject to VAT (IVA) and Stamp Duty (AJD) rather than ITP.

How much can buyers save?

A buyer purchasing a €300,000 resale property will save approximately €3,000 compared with the previous 10% rate.

When did the new tax rate come into effect?

The reduced 9% rate came into effect on 1 June 2026.

Written by Shelley Scott

Property Consultant & Business Operations, Right Priced Real Estate