Buying property in the Valencian Community will be more profitable from June 2026: Key tax changes for foreign investors
From 1 June 2026, the Valencian Community will introduce significant tax changes that will make property investment more attractive, particularly for foreign buyers purchasing property or formalising property transactions in Spain.
The reform affects two fundamental taxes in any real estate transaction: Property Transfer Tax (ITP) and Stamp Duty (AJD). Both taxes have a direct impact on the total cost of the investment, so knowing about these changes is key to planning a purchase efficiently.
ITP and AJD in Spain: Key taxes for international investors
In Spain, both ITP and AJD are managed by the autonomous communities, meaning that rates vary by region. This territorial variation is particularly relevant for international investors comparing opportunities in different areas of the country.
For example, while in Andalusia the general ITP is 7% and in the Region of Murcia it reaches 7.75%, the Valencian Community is now implementing a reform that reduces the tax burden on standard transactions, strengthening its competitiveness compared to other property markets.
When is ITP paid when buying a property in Spain?
Property Transfer Tax (ITP) is applied when a property is purchased from a private individual, provided that the transaction is not subject to VAT.
It mainly affects the purchase of second-hand homes, as well as:
- Used garages and storage rooms.
- Land acquired between individuals.
- Certain real rights over properties.
In these cases, the buyer is responsible for paying the tax.
Lower tax costs when buying a second-hand home from June 2026
One of the main advantages of the reform is the reduction in the general ITP rate in the Valencian Community to 9%. From 1 June 2026, the purchase of second-hand homes will be more tax-efficient.
This translates into:
- A lower percentage applied to the purchase price.
- Greater tax savings on medium and high-value properties
The regulations maintain higher rates for very high-value transactions, but for most common transactions, the change means a direct reduction in the cost of acquisition.
In addition, reduced rates are reinforced for certain transactions such as the acquisition of rural land for agricultural purposes, provided that the legally required activity is maintained.
Stamp duty in Spain: lower taxes on the formalisation of deeds
Stamp duty (AJD) applies on certain notarial acts that must be registered in official registers, such as the Land Registry. This tax is particularly relevant in transactions such as:
- Purchase of new housing.
- Declarations of new construction.
- Property divisions or restructuring.
- Certain mortgage transactions.
With the reform, the general AJD rate is reduced from 1.5% to 1.4%, applicable to acts subject to tax that meet the legal requirements.
Likewise, specific allowances are maintained for projects considered strategic or of special economic interest to the Valencian Community.
Why do these changes benefit home buyers?
From a practical perspective, the tax reform particularly benefits:
- Buyers purchasing second-hand homes from June 2026 onwards.
- Developers and buyers who develop real estate or urban development projects.
- Buyers acquiring land for productive purposes, in compliance with legal requirements.
Planning your purchase makes all the difference
Before buying a property or investing in a real estate project in the Valencian Community, it is advisable to analyse the transaction with specialised legal and tax advice, ensuring regulatory compliance and the correct application of taxes.
At Imont, we are at your disposal to help you with your property purchase in Spain. Tell us about your case and we will advise you.
