ITP Now 9% in the Valencian Community from June 2026: How Much You Save Buying in Torrevieja or Guardamar 8 Jul 2026

Quick answer: From 1 June 2026, the Impuesto de Transmisiones Patrimoniales (ITP — property transfer tax) in the Valencian Community dropped from 10% to 9% under Ley 5/2025. On a €200,000 resale property, buyers now pay €2,000 less in tax than before June 2026. On a €300,000 property, the saving is €3,000. This applies equally to residents and non-residents and covers Torrevieja, Guardamar del Segura, Orihuela Costa and the whole Costa Blanca South.

What Is ITP and Why It Matters

ITP is the transfer tax paid when buying a resale (second-hand) property in Spain. It is set by each autonomous community — so the rate differs by region. New-build properties are exempt from ITP and pay VAT (10%) plus stamp duty (AJD, 1.5%) instead.

In the Valencian Community, ITP had been fixed at 10% since 2013. Ley 5/2025 reduced it to 9%, effective 1 June 2026 [1]. This is the first ITP reduction in the region in over a decade.

How Much You Save: Before vs. After Table

The saving is simple and linear: €1,000 for every €100,000 of purchase price.

Updated Total Buying Costs for 2026

Resale property (ITP applies)

New-build property (VAT + AJD applies — ITP does not)

Real Example: €180,000 Two-Bedroom Apartment in Torrevieja

The same apartment bought before 1 June 2026 would have cost €199,800 in total.

Real Example: €320,000 Villa in Guardamar del Segura

Does the New 9% ITP Apply to Foreign Non-Resident Buyers?

Yes. ITP applies equally to residents and non-residents. What matters is that the property is located in the Valencian Community — not the buyer's nationality or country of tax residence.

Non-residents do face separate ongoing tax obligations after purchase: the IRNR (non-resident income tax) applies both on rental income and on imputed income if the property is not rented (typically 1.1–2% of the cadastral value annually). These are separate from ITP and unchanged by the June 2026 reform.

What Has Not Changed

The ITP reduction lowers costs but does not eliminate them. Fixed costs that remain:

Mortgage (if applicable): Spanish banks lend 60–70% of appraisal value for non-residents. 12-month Euribor stood at 2.722% as of late May 2026 . Bank appraisal: €300–€600. Arrangement fee: varies.

NIE: Required to sign at notary. Apply at the Spanish consulate in your home country or at a police station in Spain. No fee at official desk.

Lawyer: Not legally required but strongly recommended. Legal review of title (nota simple, debts, urban status) typically costs €500–€1,500 and avoids larger problems.

Community fees: Monthly charge depending on building and amenities. Complexes with communal pool in Torrevieja and Guardamar typically €50–€150/month.

IBI (property tax): Annual municipal charge. Typically €200–€600/year for a standard apartment in Torrevieja or Guardamar.

What This Means for the Market

The one-point reduction does not offset general price rises — apartments in Torrevieja are up 4.38% and houses up 4.73% over the past year, while Guardamar has seen 5.44% growth. But for buyers who had already decided to purchase, it is a genuine saving that can be redirected to renovation, furniture, or a reserve fund.

Browse current properties in Torrevieja and properties in Guardamar del Segura at Naranjas Spain. For a personalised cost breakdown on a specific property, get in touch.

For a complete guide to all buying costs, see the true cost of buying property in Spain.

Frequently Asked Questions

When did the new 9% ITP come into force in the Valencian Community? 1 June 2026, under Ley 5/2025. All deeds signed from that date are taxed at 9%.

Does the 9% ITP apply to garages and storage rooms? Yes, the general 9% rate applies to all onerous property transfers in the Valencian Community including garages, storage rooms and commercial premises (resale).

What about new-build in Torrevieja or Guardamar? New-build pays VAT (10%) and AJD (1.5%), not ITP. The ITP reduction does not affect first-transmission purchases.

Are there additional ITP reductions for young buyers or large families? The Valencian Community maintains reduced rates for buyers under 35, large families and people with disabilities, subject to income and maximum purchase price requirements. Consult a tax adviser to confirm eligibility.

Do I need to do anything to benefit from the new rate? No. If the deed is signed from 1 June 2026, the 9% rate applies automatically.

This article is for informational purposes only and does not constitute tax or legal advice. Tax rates are those in force as of June 2026 and may be subject to change. Always consult a qualified Spanish lawyer and tax adviser before making a purchase decision.