▷ Property Tax Reduction Costa Blanca 2026

The key change affects one of the most important costs when buying property in Spain: the Property Transfer Tax (ITP).

This tax applies when purchasing a resale (second-hand) property, which represents a large portion of the market on the Costa Blanca.

From June 1, 2026, the Valencian government will reduce:

ITP from 10% to 9% for properties up to €1,000,000
Stamp Duty (AJD) from 1.5% to 1.4%

For properties above €1,000,000, the higher rate of 11% will still apply.

How Much Can You Actually Save?

Although a 1% reduction may seem small at first glance, in real estate it translates into significant savings.

Examples based on current market prices:

€300,000 property → save around €3,000
€600,000 property → save around €6,000
€800,000 property → save up to €8,000

These savings can be used for:

Furniture and interior upgrades
Renovations
Legal and transaction costs
Rental preparation (for investors)

Why This Matters for Costa Blanca Buyers

The Costa Blanca property market — especially in Guardamar del Segura and Torrevieja — is driven by strong international demand and limited supply.

Lower taxes create several important effects:

1. Lower Entry Costs

Buyers can enter the market with a smaller total budget, making property ownership more accessible.

2. Higher Investment Returns

Reduced acquisition costs improve overall profitability, especially for rental investments.

3. Increased Market Activity

Tax reductions are designed to stimulate demand and encourage more transactions

4. Stronger Competitive Position

The Valencian Community becomes more attractive compared to other Spanish regions with higher taxes

Important: Timing Your Purchase in 2026

One crucial detail:
The new tax rate applies only to purchases completed after June 1, 2026.

This means:

Purchases finalized before this date will still be taxed at 10%
Buyers planning ahead can schedule completion strategically
Early preparation (property search, financing, legal checks) is key

Experts already recommend aligning your purchase timeline to benefit from the new rate

Does This Apply to All Properties?

Not exactly — it depends on the type of property:

Resale Properties

Subject to ITP → benefit directly from the reduction

New Build Properties

Subject to VAT (10%) instead of ITP
Still benefit slightly from lower AJD (1.4%)

This is why the reform is especially attractive for buyers considering second-hand homes, which are very common in established coastal areas like Guardamar and Torrevieja.

Additional Tax Benefits Introduced in 2026

The reform is part of a broader strategy (Law 5/2025) to improve the investment climate in the region.

Other benefits include:

Increased wealth tax allowance up to €1,000,000
Additional tax reductions for families and specific buyer groups
Reduced taxes on inheritance and property transfers

These changes make long-term ownership and investment even more attractive.

Why International Buyers Should Pay Attention

Costa Blanca is already one of the most popular destinations in Europe for foreign property buyers. With this tax reduction, the region becomes even more competitive.

For international buyers, this means:

Lower overall purchase costs
More predictable investment planning
Better comparison vs. other Mediterranean markets
Continued strong rental demand

Importantly, these tax changes apply regardless of nationality, meaning both EU and non-EU buyers can benefit

Market Impact: What to Expect

Whenever taxes decrease, the market typically reacts.

In 2026, we can expect:

Increased buyer activity after June
Faster sales of well-priced properties
Continued pressure on limited supply
Possible upward price adjustments in high-demand areas

This creates a clear dynamic:
lower taxes may lead to higher competition.

Conclusion: A Window of Opportunity for Buyers

The 2026 tax reduction on the Costa Blanca is a clear signal:
the Valencian government is actively encouraging property investment and home ownership.

Key takeaways:

Property transfer tax reduced from 10% to 9%
Additional savings through lower stamp duty
Thousands of euros saved on typical purchases
Best opportunities for resale properties
Strategic timing (after June 2026) is essential

For buyers looking at Guardamar del Segura, Torrevieja, or the wider Costa Blanca, this is more than just a tax change — it is a financial advantage that can significantly improve your purchase conditions.

Contact our real estate in Guardamar del Segura now: