Tax Rate drops on Costa Blanca Resale Properties
There is some very positive news on the way for anyone planning to buy property on the Costa Blanca.
From 1 June 2026, the Valencian Community will reduce the standard ITP rate on resale properties from 10% to 9%, making property purchases across Alicante province noticeably cheaper for both Spanish and international buyers.
For buyers looking at areas such as Jávea, Moraira, Altea, Benidorm, Torrevieja or Marbella-style luxury homes along the Costa Blanca, this could mean savings of several thousand euros simply by completing after the new rates come into effect.
The change applies to second-hand properties up to €1 million in value. Properties above that threshold will continue to be taxed at 11%. Alongside the ITP reduction, the AJD stamp duty rate is also being reduced slightly from 1.5% to 1.4%.
In practical terms, the savings are significant:
- €300,000 resale property
Old ITP: €30,000
New ITP: €27,000
Saving: €3,000 - €500,000 resale property
Old ITP: €50,000
New ITP: €45,000
Saving: €5,000 - €750,000 resale property
Old ITP: €75,000
New ITP: €67,500
Saving: €7,500
For many buyers, that difference can comfortably cover legal fees, furniture packages, renovation work or part of the moving costs.
One important detail buyers need to understand is that the date that matters is the notary completion date, not the reservation contract date. A buyer who reserves a property earlier in the year but signs after 1 June 2026 will still qualify for the lower rate.
The Costa Blanca market has remained extremely active throughout 2025 and early 2026, particularly with buyers from the UK, Belgium, the Netherlands and Scandinavia continuing to target lifestyle and investment properties across the region. This tax reduction only strengthens Valencia’s position as one of the most attractive areas in Spain for overseas buyers.
How Does Valencia Compare With Murcia and the Costa del Sol?
The Valencian Community’s new 9% rate places it in a much more competitive position compared with other major coastal regions.
In Murcia, the general ITP rate currently sits at 8%, which still makes it slightly cheaper from a tax perspective for resale purchases. However, many buyers continue to favour the Costa Blanca due to its stronger infrastructure, international schools, airport access and wider choice of established coastal towns.
On the Costa del Sol in Andalucía, the ITP rate remains at 7% for most standard purchases, making Andalucía one of the lowest taxed regions in Spain for resale properties.
That said, tax rates are only one part of the equation. Property prices across many areas of the Costa del Sol are now substantially higher than comparable homes on the Costa Blanca, meaning buyers often still achieve better overall value in Alicante province despite the slightly higher transfer tax.
For example, a modern villa in Marbella or Estepona can easily cost many times the price of a similar property in areas such as Polop, Finestrat or Ciudad Quesada.
Buyers have delayed completion to take advantage
Some buyers have decided to delay completion dates in order to take advantage of the reduced tax rates. For higher value resale purchases, the savings are simply too large to ignore.
The long and the short of it is that from June 2026 onwards, buying resale property on the Costa Blanca becomes even more financially attractive.
For international buyers already considering Alicante province, this latest tax change could be the extra push that brings even more demand into the market over the next 12 months.
