Property Transfer Tax Education Valencia – June 2026mpo Required

Property Transfer Tax Reduction Valencia – June 2026

The Valencian Community reduces the Property Transfer Tax (ITP) in 2026:

What Buyers Need to Know

The Valencian Community has announced a significant reduction in the Property Transfer Tax (ITP) applicable to the purchase of second-hand homes. These changes, introduced by Law 5/2025, will come into force progressively and represent significant tax savings for home buyers from 1 June 2026.

The reform aims to improve access to housing, support vulnerable groups and increase competitiveness in the regional real estate market.

ITP vs. VAT: What tax is applied when buying a property in Spain?

It is essential to distinguish between ITP and VAT, as they apply to different types of real estate transactions:

The ITP applies only to second-hand homes purchased from a private individual.
VAT applies to new-build homes purchased directly from a developer.

The 2026 tax reform The Valencian Community only applies the ITP. The VAT rate for new homes remains unchanged:

VAT on new homes: 10%
VAT on new-build homes is applied nationwide and is not affected by the regional ITP regulations.

General ITP rate in the Valencian Community from June 2026

From 1 June 2026, the general ITP rate for the sale of second-hand homes in the Valencian Community will be reduced:

General rate: 9% (previously 10%)
Luxury homes: 11% for homes with a declared value of more than €1,000,000

This reduction mainly applies to the acquisition of primary residences and represents substantial savings for buyers compared to the previous tax framework.

Reduced rates of the ITP for special groups

The Valencian tax system continues to offer favourable reduced rates for specific social and economic groups, provided that certain conditions are met.

Young buyers (under 35 years old)

ITP Rate: 6%
Applies to the purchase of a first primary residence
Maximum property value: €180,000

ITP Rate: 6%
Applies to the purchase of a first primary residence
Maximum property value: €180,000

Large and single-parent families

ITP Rate: 3%
The property must be the main residence
Maximum property value: €180,000

Shoppers with disabilities

ITP rate: 4%
It mainly applies to subsidized housing (VPO) or properties that meet certain value and accessibility requirements Conditions

Rustic Soils for Professional Farmers

ITP rate: 4%
It applies to non-developable rural land
The buyer must be considered a professional farmer
Effective June 30, 2026

Payment Deadline and Filing Obligations

The ITP must be paid within 30 working days from the date of signing the public deed of sale.

Model: Model 600
Where: Hacienda Valenciana

Failure to file and pay within the deadline may result in surcharges and penalties.

Progressive reduction according to Law 5/2025

The reduction in the general rate of the ITP is part of a progressive tax reform established by Law 5/2025. The aim is to gradually reduce the tax burden on real estate transactions, while maintaining higher taxation for high-value assets.