Property Taxes on the Costa Blanca (Comunidad Valenciana)

The tax picture on the Costa Blanca is different from Tenerife, and it’s changed recently in buyers’ favor, so it’s worth knowing the current numbers rather than whatever you might have heard a year or two ago.

If you’re buying

As of June 1st, 2026, the standard ITP rate was reduced from 10% to 9% for transactions up to €1 million. For properties above €1 million, the rate remains at 11%.

If you’re buying new-build, VAT applies at 10%, plus a legal documentation tax (AJD) of 1.4%. The buyer also covers notary fees and property registry costs, same as in Tenerife.

For example, on a new-build purchase of €300,000: VAT at 10% comes to €30,000, plus AJD at 1.4% (€4,200), plus notary and registration, roughly another €3,500-4,000. Total additional costs usually land around 12-13% on top of the property price, noticeably higher than in the Canary Islands.

So the two paths look the same shape as anywhere else in Spain, resale versus new-build, but the percentages here run a bit higher than in the Canary Islands, worth factoring into your budget from the start rather than discovering at the notary.

If you’re selling

For sellers, capital gains tax works the same way it does across Spain: calculated on the profit from the sale, with non-residents paying a flat 19%, partly withheld by the buyer at the point of sale (3% of the sale price), while tax residents declare the sale in their annual return and pay on a progressive scale.

The capital gains tax rates for property sales in 2026 are:

• 19% up to €6,000
• 21% from €6,000 to €50,000
• 23% from €50,000 to €200,000
• 27% from €200,000 to €300,000
• 28% or 30% above that threshold

Reduced purchase tax rates

Valencia’s regional legislation includes a whole set of tax reductions that form the reduced ITP rate, depending on the buyer’s category, the property’s purpose, and its price.

For buyers under 35, purchasing their first primary residence:

• Price up to €180,000 → 6% rate
• Price above €180,000 → 8% rate

For properties tied to business or professional activity, a separate reduced rate also applies.

For large families, including single-parent households, provided the property is for permanent residence:

• Price up to €180,000 → 3% rate
• Price above €180,000 → 4% rate

For people with disabilities and women who have experienced gender-based violence, the same regime applies as for large families:

• Price up to €180,000 → 3% rate
• Price above €180,000 → 4% rate

For people with disabilities, the reduction depends on the officially recognized degree: 65% for physical or sensory disability, 33% for mental disability. The reduction only applies to the share of the property being acquired by the person eligible for it.

For example, a family with three children buys a primary home for €165,000. Since the price is under €180,000 and the family qualifies as a large family, the 3% rate applies instead of the standard 9%: €165,000 × 3% = €4,950. Without the reduction, the tax would have been €165,000 × 9% = €14,850. The difference here is especially significant, almost €10,000.

A note on AJD specifics

Beyond the main rates, a reduced 0.1% AJD rate applies when buying a primary residence or arranging a mortgage for that purpose, for eligible categories (people with disabilities, large families). There’s also an increased 2% rate that applies in transactions where the seller waives VAT exemption.

None of this needs to be memorized, but it’s worth checking in advance which category applies to your situation, ideally with proper advice, so the amount due at the notary isn’t a surprise.