BENIHOMES · COSTA BLANCA
ITP, VAT and AJD when buying a home in Valencia in 2026
In the Valencian Community, a resale home and a developer’s first supply of a new home do not normally attract the same purchase tax. For a taxable event from 1 June 2026, the region’s general transfer-tax rate is 9%, rising to 11% where the value of the transferred property exceeds €1 million; special and reduced cases exist. A developer’s first supply is normally subject to VAT and the deed may also attract stamp duty (AJD). Check the date, property, buyer and taxable base before calculating.
Identify the transaction before the tax
| Typical transaction | Main tax | Question that changes the result |
|---|---|---|
| Resale home sold by a private owner | Transfer tax (ITP/TPO) | Does the general or a special rate apply? |
| Second or later supply of a home | Usually transfer tax | How is this particular supply classified? |
| Developer’s first supply of a completed home | Usually VAT; check AJD on the deed | Is it a first supply, and what type of home is it? |
Spain’s Tax Agency explains VAT versus transfer tax. “New build” in an advert is insufficient to decide the tax. What matters is the legal nature of the transfer and whether it is the first supply. Ask your adviser to classify the deal before signing a deposit contract. Our new-build versus resale comparison covers the wider decision beyond tax.
Valencian transfer tax from June 2026
Law 5/2025, article 33 amended article 13 of Valencian Law 13/1997 for taxable events from 1 June 2026: a 9% general rate for property acquisitions unless a special rate applies, and 11% when the value of the transferred property or right exceeds €1 million. Do not apply these figures to earlier dates or other Spanish regions. Check any personal circumstances and the exact conditions for relief before claiming it.
The taxable base is not always the asking price. Spain’s Cadastre explains the reference value: it can determine the ITP/AJD base; if the declared value or paid price is higher, the larger amount is used. Obtain the certified reference value for the property and taxable date, and seek advice on discrepancies. Do not alter the deed price to address a disputed tax base.
Illustration only: if a resale home has a verified €300,000 taxable base, qualifies for the general 9% rate and no special rule applies, the calculated transfer tax is €27,000. That example is not a tax assessment for a particular home. The base, date and eligibility may change the result.
VAT and AJD on a first supply
The Spanish Tax Agency states that a developer’s first supply of an ordinary new home generally carries 10% VAT; certain protected housing cases can qualify for 4%. For a simple VAT illustration, a €300,000 base at 10% gives €30,000 VAT. Before using the example, check how any parking spaces, annexes and sale conditions are treated.
AJD is a separate question for a deed subject to VAT. Article 34 of Law 5/2025 set the Valencian 1.4% general rate for the “other cases” in article 14 from 1 June 2026. The consolidated article 14 provides a 0.1% rate for first copies of public deeds documenting acquisitions of a habitual home, where the legal definition is met. Other rates can apply. Do not add 1.4% mechanically to every agreement or mortgage. Ask a notary or tax adviser for a calculation based on the actual deed, taxable base and liable party.
Budget beyond the main tax
Allow separately for notary and Land Registry fees, any conveyancing agent, finance, valuation when required, translation and professional advice, repairs and continuing ownership costs. These are not a fixed percentage of the price. Seek quotes and separate purchase, finance and annual costs. Our Alicante purchase-cost guide provides a line-by-line budget. The foreign buyer’s guide sets out the wider sequence and the nota simple and deposit checklist covers checks before paying.
Frequently asked questions
Do I pay both ITP and VAT on the same home?
The type of supply determines the main tax. A first supply subject to VAT may also require AJD on the deed; an ordinary resale is assessed for transfer tax. Check your transaction rather than the marketing label.
Is the agreed price always the taxable base?
Not necessarily. For ITP, check the base under the reference-value rules and the other legal amounts, then the rate applicable to your case. An asking price is not a tax return.
Does every Alicante buyer pay 9%?
No. It is the general Valencian rate from the stated date; higher-value, special and reduced cases exist. Verify the law in force on your taxable date before committing.
Sources and review: Spanish Tax Agency, BOE Law 5/2025 and Directorate General for the Cadastre; checked on 31 October 2026. General information, not an individual tax calculation or legal opinion. BeniHomes editorial photograph, not necessarily a home for sale.