Starting on June 1st, 2026, a major tax reform will come into effect in Valencia. The ITP (Property Transfer Tax), a key tax paid when purchasing a resale property in Spain, will decrease from 10% to 9%.
At first glance, this change may appear minor. However, it represents a real opportunity for buyers looking to invest in the Valencia real estate market. In a context where acquisition costs strongly influence purchasing decisions, this tax reduction could encourage many new property projects in the region.
To better understand current market trends, read our full analysis: Valencia Real Estate Market in 2026: Rising Prices, Market Pressure and the End of the “Price Drop” Myth
What is the ITP tax in Spain?
The ITP is the tax applied when purchasing a resale property in Spain, especially in transactions between private individuals. Unlike new-build properties, which are subject to VAT, second-hand properties are subject to this regional tax.
When buying property in Spain, the ITP represents a significant part of the acquisition costs. It is therefore essential to anticipate it properly in order to calculate the real budget needed for a property purchase.
One of the particularities of the Spanish tax system is that ITP rates are managed by each autonomous community. This means tax rates can vary significantly from one region to another, directly impacting the attractiveness of local real estate markets.
Why the ITP reduction in Valencia matters
The reduction of the ITP rate to 9% is part of a broader strategy to stimulate the local property market and strengthen Valencia’s appeal among both Spanish and international buyers.
From June 1st, 2026, buyers purchasing resale properties in Valencia will pay 9% instead of 10% in transfer tax.
Although the difference may seem small, it can quickly represent several thousand euros in savings depending on the property price. It is important to note that the applicable rate depends on the date of signing before the notary. Purchases completed before June 2026 will still be subject to the previous tax rate.
This reform applies to:
- Spanish residents
- non-residents
- European buyers
- non-European investors
In other words, foreign buyers looking to make a real estate investment in Valencia will also benefit from this tax reduction.
What impact will this have on buyers?
The reduction in ITP can directly lower the overall cost of buying property in Valencia. For example, purchasing a property worth €200,000 would generate approximately €2,000 in savings. For a €300,000 property, savings could reach €3,000.
These savings may then be reinvested into renovation works, furniture, or used to strengthen the buyer’s financial contribution. In a dynamic market such as Valencia, this measure could also improve the profitability of a rental investment property.
To learn more about real estate profitability in Valencia, visit: Investing in Real Estate in Valencia: Is It Profitable?
Is Valencia becoming more attractive than other Spanish regions?
With this tax reform, Valencia is strengthening its position compared to other major Spanish cities. While some regions continue to apply high acquisition taxes, Valencia remains attractive thanks to its balance between accessible prices, quality of life, and long-term investment potential.
Compared to Madrid or Barcelona, Valencia is still considered more affordable for many international investors and foreign buyers.
To find out whether now is the right time to invest, read also: Why 2026 Is the Right Time to Buy in Valencia
Should buyers wait until June 2026?
Many buyers are already asking themselves this question. Waiting until June 2026 would allow them to automatically benefit from the new 9% ITP rate and therefore reduce overall acquisition costs.
However, waiting also carries risks. Property prices in Valencia may continue to rise, potentially offsetting part of the tax savings. Ultimately, the best decision depends on the buyer’s budget, investment goals, and the opportunities currently available on the market.
Conclusion: a reform that could accelerate property investment in Valencia
The reduction of the ITP to 9% represents a significant evolution for Valencia’s property market. Although modest on paper, this measure could substantially improve buyers’ purchasing power and reinforce the region’s attractiveness among both local and international investors.
As Valencia continues to attract more French buyers, retirees, and foreign investors, this tax reform could accelerate many real estate projects from 2026 onward.