Financial News | 1% Reduction of Purchase Tax - June 2026!

From 1 June 2026, the Valencian Community will introduce a reduction in Property Transfer Tax (ITP) from 10% to 9% on most resale property purchases.

While a 1% reduction may seem modest at first glance, in property terms it represents a meaningful saving and a positive shift for the market as a whole. This is not just good news for buyers, it also creates new opportunities for sellers.

What the Change Means in Practice

The ITP is the main tax paid when purchasing a resale property in Spain. It is calculated as a percentage of the purchase price, so even a small reduction can translate into significant savings.

For example:

• A €400,000 property could now save around €4,000 in tax
• An €800,000 property could save approximately €8,000 in tax

For most buyers purchasing under €1 million, the new 9% rate will apply, making the overall cost of buying more manageable.

Why This Is Good News for Buyers

Greater affordability

Lower purchase tax means buyers need less upfront capital to complete their purchase. This can make the difference between proceeding with a purchase or delaying plans.

Improved buying power

With reduced costs, buyers may be able to consider better properties, improved locations, or invest more into furnishing or renovating their new home.

Increased confidence

A reduction in purchase costs creates a more attractive and accessible market, encouraging both national and international buyers to move forward with confidence.

Better long-term value

Lower acquisition costs can improve overall return on investment, particularly for second home buyers or those planning to rent their property.

Why This Is Also Good News for Sellers

More active buyers

When purchasing becomes more affordable, more buyers enter the market. Increased demand naturally creates more opportunities for sellers.

Stronger competition

With more buyers actively searching, well-presented properties are likely to attract greater interest, potentially leading to quicker sales.

Smoother transactions

Buyers who benefit from lower upfront costs are often in a stronger financial position, helping transactions progress more efficiently.

A more attractive market overall

This tax change enhances the appeal of the Valencian Community compared to other regions, strengthening its position as a desirable place to buy property.

A Positive Step for the Property Market

This reduction in purchase tax is part of a wider effort to make property ownership more accessible and to encourage investment in the region.

For buyers, it reduces the financial barrier to entry.
For sellers, it increases demand and market activity.

Overall, it is a well-balanced change that supports a healthier, more dynamic property market across the Valencian Community.

If you are considering buying or selling, this change creates a timely opportunity to make your next move with greater confidence.