Since 1 June, buying a home in the provinces of Alicante, Valencia and Castellón has become slightly cheaper. This mainly concerns those purchasing resale property, as the general Property Transfer Tax (ITP) rate is reduced from 10% to 9%, except in special cases – such as high-value transactions.
How purchase costs will change
For example, if a resale property costs 180,000 euros, at the 10% rate the buyer would have paid 18,000 euros in tax. Under the new 9% rate, the tax falls to 16,200 euros – meaning a saving of 1,800 euros.
This measure also affects those buying new-build property, although in this case VAT remains unchanged at 10%. The general rate of Stamp Duty on documented legal acts (AJD) is reduced from 1.5% to 1.4%, which may mean savings on high-value transactions. To benefit from the tax relief, the purchase agreement must be signed no earlier than 1 June.
What to consider before signing
This measure is being introduced at a time when buying an apartment or house has become one of the main concerns for many families – especially for young people and first-time buyers. On its own, this tax reduction does not solve the problem of prices, lack of supply or difficulties in accessing financing, but it does reduce part of the initial costs that the buyer must assume.
Nevertheless, before signing the purchase agreement, each transaction should be carefully analysed. Reduced rates, tax benefits and special rules may apply depending on the type of buyer, the value of the property or whether it will be the buyer’s main residence. In addition, a higher rate remains in place for certain high-value residential properties, so not all transactions are taxed in the same way.
