Property purchase taxes 2026: Complete guide to saving on the Costa Blanca
If you are thinking of buying a property in the Mediterranean paradise, it is essential to know the home purchase taxes 2026, since this year brings important changes in the tax regulations of the Valencian Community. When planning your investment, you must consider not only the price of the property, but also the notary fees and the handling of a second-hand or new-build home, which can significantly alter your final budget.
Buying a house in cities like Denia, Jávea, Altea or Torrevieja is an exciting decision, but the bureaucracy can be overwhelming. In this article, we break down simply and clearly everything you need to know so that your experience on the Costa Blanca is transparent and free of last-minute surprises.
ITP Valencian Community 2026: how much is paid when buying a home?
One of the most relevant news items for 2026 is the update of tax rates in the region. If you are going to buy a second-hand home, the main tax you must pay is the Transfer Tax (ITP).
Unlike previous years, the Generalitat has introduced a more competitive scale to stimulate the real estate market on the coast. Until May 2026, the general rate remained at 10%, but as of June 1, 2026, the general ITP rate is reduced to 9%. This 1% reduction can mean savings of thousands of euros on mid- and high-range properties, very common on the Costa Blanca.
Reduced rates for specific groups
Not everyone pays the general rate. There are very attractive tax benefits if you meet certain requirements:
Youths under 35: If the home will be your habitual residence and its value does not exceed €180,000, you can benefit from a reduced rate of 6%.
Large families and people with disabilities: In these cases, the tax can drop to 4%, provided the established income limits are met.
Officially protected housing (VPO): These generally are taxed at 8%.
It is vital to check the Cadastral reference value, since the Tax Agency will calculate taxes on that value and not necessarily on the price you pay for the house if the latter is lower.
VAT and AJD on new-builds: differences with second-hand homes
It is common to confuse costs depending on the type of property. On the Costa Blanca, where the construction of modern villas and apartment complexes is booming, it is essential to distinguish between buying from a developer or from a private seller.
Buying a new-build home
If you are buying a brand-new house, you do not pay ITP. Instead, you will face two different taxes:
VAT (Value Added Tax): It remains at 10% as a general rule throughout Spain. For officially protected housing under a special regime, this can drop to 4%.
AJD (Documented Legal Acts): This tax applies to the signing of the public deed. In the Valencian Community, the general rate for 2026 is set at 1.5%.
Buying a second-hand home
As mentioned, here the protagonist is the ITP (9% from June). The big advantage is that VAT or AJD are not paid on the sale itself, which usually slightly reduces the initial tax bill compared with new-builds.
To delve into national regulations, you can consult the official website of the Tax Agency, where national tax bases are detailed.
Notary and registration costs 2026: what other expenses should I anticipate?
In addition to the home purchase taxes 2026, there are other "satellite" costs you should add to your calculation. In total, we recommend setting aside between an additional 12% and 13% of the purchase price to cover the entire process.
Notarial and registry fees
Notary fees are regulated by law, although they can vary slightly depending on the number of copies of the deed or the complexity of the contract. For an average home on the Costa Blanca, notary costs usually range between €600 and €1,200. Meanwhile, registration in the Property Registry is essential to protect your rights as an owner. This procedure usually costs between €400 and €800.
Agency and appraisal fees
If you need a mortgage, the bank will require an official appraisal, which costs around €300 - €600. The management agency (gestoría), although not mandatory if you pay in cash, is highly recommended for foreigners or people who are not familiar with the Spanish system. Their role is to ensure all taxes are paid on time (you have 30 days after signing). The cost is usually around €300 to €500.
Note for investors: If you buy a property from a seller who is not resident in Spain, remember that you have the legal obligation to withhold 3% of the sale price to pay into the Tax Agency (Form 211) on their behalf.
Frequently Asked Questions
1. What is the approximate total expense when buying a house in 2026? It depends on the region and the type of property, but on the Costa Blanca you should budget an extra 12% to 15% on top of the sale price to cover taxes, notary and registration.
2. Has ITP decreased in the Valencian Community this year? Yes, for transactions signed as of June 1, 2026, the general ITP rate for used homes has gone from 10% to 9%.
3. What taxes do foreigners pay when buying on the Costa Blanca? Taxes are identical to those of a Spanish resident (VAT or ITP). The main difference is the requirement to obtain an NIE and the possible 3% withholding if the seller is not a tax resident in Spain.
4. Are there aids for young buyers in 2026? Yes, in addition to the reduced ITP rate of 6%, ICO guarantees remain active that can cover up to 20% of the down payment for those under 35 with limited income.