Valencia Slashes Property Transfer Tax on the Costa Blanca

Valencia Lowers Transfer Tax on Resale Homes

Buyers house-hunting along the Costa Blanca stand to keep significantly more money in their pockets following a decision by the regional government of Valencia to trim the tax applied to second-hand property purchases, according to Euro Weekly News.

The change affects the Impuesto de Transmisiones Patrimoniales (ITP), the transfer tax paid whenever a previously owned home changes hands in the region. For international buyers eyeing a coastal apartment in Dénia, Jávea, Moraira or Altea, the reduction can translate into savings of several thousand euros on a typical purchase — a meaningful shift in the overall cost of relocating or investing on this stretch of the Mediterranean.

Why It Matters for Travelers and Expats

The Costa Blanca North remains one of Spain's most popular regions for foreign homeowners, particularly among Northern Europeans looking for a sun-drenched second residence or a permanent move abroad. A lower entry cost strengthens the appeal of resale properties over new-build alternatives, which are instead subject to VAT (IVA) rather than the regional transfer tax.

For anyone actively searching in the area, the practical takeaway is straightforward:

• Check the exact rate before signing. ITP is regional, and the new brackets may vary depending on the property's price and the buyer's circumstances.
• Factor total costs. Notary fees, land registry charges and legal advice still typically add roughly 10–12% on top of the sale price, even with the lower tax.
• Get local legal support. A Spanish lawyer independent of the seller and agent can confirm eligibility for any reduced rate.

Broader Impact on the Market

Cheaper acquisition costs could encourage more transactions in coastal towns that rely heavily on foreign demand, potentially boosting the rental market for travelers who prefer holiday apartments over hotels. As reported by Euro Weekly News, the measure is expected to be especially welcome among buyers in the northern half of the Costa Blanca, where resale stock dominates.

Prospective purchasers are advised to consult an updated gestor or tax adviser to confirm how the new rates apply to their specific transaction before committing to a deposit.