Good news for buyers in Costa Blanca North: the Valencian regional government has announced a reduction in the Property Transfer Tax (ITP) from 10% to 9%, expected to take effect from June 2026. For anyone considering purchasing a resale property in areas such as Altea, Calpe, Moraira, Dénia, Albir, Benidorm, Jávea or Benissa, this update could result in meaningful savings.

Here’s what you need to know.

What Is the Property Transfer Tax (ITP)?

When buying a resale property in Spain, buyers pay Property Transfer Tax (Impuesto de Transmisiones Patrimoniales – ITP) instead of VAT.

Currently in the Valencian Community — which includes Alicante province and therefore Costa Blanca North — the standard ITP rate is 10%.

From June 2026, the general rate is expected to be reduced to 9% for most property purchases under €1,000,000.

This reduction applies only to resale properties. Newly built homes will continue to be subject to 10% VAT (IVA).

What Does This Mean for Buyers in Costa Blanca North?

In high-demand locations like Altea Hills, Moraira, Jávea and Benissa, property prices often range between €300,000 and €900,000. A 1% tax reduction may sound small, but it can make a noticeable difference.

For example:

• On a €300,000 property → tax decreases from €30,000 to €27,000
• On a €500,000 property → tax decreases from €50,000 to €45,000
• On a €800,000 property → tax decreases from €80,000 to €72,000

That represents savings between €3,000 and €8,000 depending on the purchase price.

In premium segments, properties above €1,000,000 are expected to remain subject to a higher rate (currently 11%).

Why This Matters for Costa Blanca North

Costa Blanca North is known for:

• Limited new-build supply in prime coastal areas
• Strong international demand
• High proportion of resale villas and apartments
• Stable long-term value growth

It may also encourage buyers who were hesitating due to high upfront costs.

Should You Wait Until 2026 to Buy?

This is a common question.

While a 1% tax reduction is attractive, it’s important to weigh it against:

• Ongoing price growth in Costa Blanca North
• Limited availability of prime properties
• Current interest rate conditions
• Rental yield potential

In a rising market, waiting for a 1% tax reduction could be offset by property price increases. In some cases, acting sooner may still be financially beneficial.

Each situation is different, so it’s important to evaluate timing carefully.

A Positive Signal for the Valencian Property Market

The planned ITP reduction is a clear signal that the Valencian government wants to keep the region competitive and attractive for both national and international buyers.

For Costa Blanca North — one of the most stable and desirable markets in Spain — this reinforces long-term confidence.

Thinking About Buying in Costa Blanca North?

If you are considering purchasing a property in Altea, Calpe, Moraira, Dénia, Albir, Benidorm or Jávea, we can guide you through:

• Full cost breakdowns including transfer tax
• Purchase strategy and negotiation
• Legal and tax implications
• Market timing analysis

Feel free to contact us for a personalised purchase overview and up-to-date advice.