Good news: Valencia has reduced the tax on property purchases

If you are thinking of buying a property in sunny Valencia, now is a great time! The President of the Generalitat, Carlos Mason, has announced the reduction of  the property transfer tax (ITP) from 10% to 9%. This measure has already come into effect and affects all buyers who purchase homes on the secondary market..

What does it  mean in practice?

The ITP is the  tax payable on the purchase of a second home.. It used to be 10% of the value, but is now one percent lower. .At first glance, the difference may seem insignificant, but in reality,it is a saving of thousands of euros   — especially tangible for those who’ve been saving for a deposit for a long time 

Property prices in Valencia, as in many other regions of Spain, continue to rise. The city has become particularly popular with foreign buyers due to its  mild climate, rich culture, and proximity to the sea. Against this background, even a small reduction in the tax burden can be a decisive factor in the purchase decision.

Who can take advantage of the reduced rate?

The good news is that  absolutely everyone. Whether you are a Spanish resident or not, the 9% ITP rate applies to all home buyers in the secondary market..

The authorities say the aim of the initiative is to support those who want to own their own home  in the region, as well as to stimulate the real estate  market. It is part of a wider strategy to strengthen Valencia’s economy and create more affordable living conditions.