Alicante Property Buyers Welcome the New 9% Transfer Tax

There is good news for anyone considering buying a resale property in Alicante or anywhere else in the Valencian Community. From 1 June 2026, the regional government reduced the standard Property Transfer Tax (Impuesto de Transmisiones Patrimoniales, or ITP) from 10% to 9% on most resale property purchases.

While a one percent reduction may not sound dramatic at first glance, the savings can be significant when buying property.

What is the ITP?

The ITP is a tax paid by the buyer when purchasing a resale property in Spain. It does not apply to new-build homes purchased directly from a developer, which are generally subject to VAT (IVA) and Stamp Duty (AJD) instead.

For many buyers, particularly those purchasing villas and apartments along the Costa Blanca, ITP represents one of the largest upfront costs in the buying process.

How Much Can Buyers Save?

The reduction from 10% to 9% means buyers will save €1,000 for every €100,000 of a property's taxable value.

For example:

• €200,000 property – tax falls from €20,000 to €18,000, saving €2,000

• €350,000 property – tax falls from €35,000 to €31,500, saving €3,500

• €500,000 property – tax falls from €50,000 to €45,000, saving €5,000

These savings can often cover legal fees, furniture purchases, or other moving expenses.

Who Benefits?

The new 9% rate applies to most resale property purchases completed on or after 1 June 2026 within the Valencian Community, which includes the provinces of Alicante, Valencia and Castellón. The applicable rate is determined by the completion date of the purchase before the notary.

However, buyers should be aware that properties with a taxable value exceeding €1 million continue to attract an 11% ITP rate, so the reduction mainly benefits mainstream residential buyers rather than the luxury market.

Why Has the Tax Been Reduced?

The regional government has introduced the measure as part of a wider package aimed at making property purchases more affordable, encouraging investment and supporting activity within the housing market.

For international buyers, retirees and those relocating to the Costa Blanca, lower transaction costs make the region even more attractive compared with some other parts of Spain.

Buyers Should Still Budget Carefully

Although the reduction is welcome, buyers should remember that the ITP is only one part of the total purchase costs. Other expenses typically include:

• Notary fees

• Land Registry fees

• Legal representation

• Mortgage-related costs (where applicable)

It remains sensible to budget around 10–13% above the purchase price for a resale property to cover all acquisition costs.

Final Thoughts

The reduction of the Property Transfer Tax to 9% is undoubtedly positive news for anyone purchasing a resale home in Alicante and the wider Valencian Community. While it doesn't change the fundamentals of buying property, it does reduce one of the largest upfront costs and leaves buyers with more money to invest in their new home.

Whether you're buying a holiday apartment, a retirement villa or an investment property, every euro saved at completion makes a difference—and this latest tax change is a welcome step in the right direction.