If you are planning to buy a resale property on the Costa Blanca, one of the most important costs to consider is the Property Transfer Tax, commonly known as ITP (Impuesto sobre Transmisiones Patrimoniales).

Whether you are purchasing an apartment in Torrevieja, a golf property in Orihuela Costa, a modern villa in Finestrat or a luxury home in Altea or Calpe, understanding how ITP works is essential for calculating your total purchase costs.

This guide explains the current ITP rates in the Valencian Community, who pays the tax, when it must be paid and the reduced rates available in certain circumstances.

What Is ITP?

ITP (Impuesto sobre Transmisiones Patrimoniales) is the Spanish Property Transfer Tax applied when purchasing a resale property.

In simple terms, if you buy a property that has previously been owned and is being sold by a private individual, ITP will normally apply.

The tax is collected by the Autonomous Community where the property is located, which means the rates vary across Spain.

In the Valencian Community, ITP represents one of the largest purchase costs after the property price itself.

When Does ITP Apply?

ITP generally applies to:

l Resale apartments.

l Resale villas.

l Townhouses.

l Commercial premises.

l Garages and storage rooms sold separately.

l Certain transfers of property rights.

ITP does not normally apply to new-build properties purchased directly from a developer, as these transactions are usually subject to VAT (IVA) and Stamp Duty (AJD) instead.

Who Pays ITP?

The buyer is responsible for paying the tax.

In practice, the purchaser must declare and pay ITP after completion of the property purchase.

This is one of the reasons why buyers should always calculate their total acquisition costs before making an offer.

What Is the ITP Rate in the Valencian Community in 2026?

General ITP Rate: 9%

Since June 2026, the general Property Transfer Tax rate in the Valencian Community is 9% of the taxable value of the property.

This reduced rate applies to most residential resale purchases.

Luxury Property Rate: 11%

Properties valued above €1,000,000 are generally subject to a higher rate of 11%.

This is particularly relevant for luxury villas and premium residential properties in areas such as:

l Altea Hills.

l Sierra de Altea.

l Benissa Costa.

l Calpe.

l Finestrat.

l Exclusive frontline developments across the Costa Blanca.

What Value Is Used to Calculate ITP?

The tax is calculated on the highest of:

l The purchase price declared in the deed.

l The official Reference Value (Valor de Referencia Catastral) established by the Spanish Cadastre, where applicable.

For this reason, buyers should always verify the cadastral reference value before completion.

Your lawyer can review this as part of the due diligence process.

Reduced ITP Rates in the Valencian Community

The Valencian Community offers reduced rates for certain categories of buyers.

Eligibility requirements may change over time, and professional advice should always be obtained before relying on a reduced rate.

Reduced Rate: 6%

Certain young buyers purchasing their primary residence may qualify for a reduced rate, subject to age, income and residency requirements.

Reduced Rate: 4%

A 4% rate may apply in specific situations, including certain purchases by:

l Large families.

l Single-parent families.

l Individuals with recognised disabilities.

l Victims of gender violence.

l Purchasers of qualifying protected housing.

l Certain business investments in designated areas.

Specific legal conditions apply in each case.

When Must ITP Be Paid?

ITP must be declared and paid within 30 working days from the date of completion before the notary.

Missing the deadline may result in:

l Surcharges.

l Interest charges.

l Administrative penalties.

For this reason, most buyers ask their lawyer or gestor to handle the filing immediately after completion.

How Is ITP Paid?

The tax is declared using Modelo 600.

The process can usually be completed:

l Electronically.

l Through a legal representative.

l Through a gestoría.

l Via your property lawyer.

Most international buyers choose to have their lawyer manage the entire process as part of the post-completion service.

Example: How Much ITP Will I Pay?

Example 1: Apartment in Torrevieja

Purchase price: €250,000

General ITP rate: 9%

ITP payable: €22,500

Example 2: Villa in Finestrat

Purchase price: €750,000

General ITP rate: 9%

ITP payable: €67,500

Example 3: Luxury Villa in Calpe

Purchase price: €1,250,000

Applicable rate: 11%

ITP payable: €137,500

These examples are for illustration purposes only. Individual circumstances and tax rules may affect the final amount payable.

ITP vs VAT: What Is the Difference?

Many foreign buyers are surprised to discover that not all properties are taxed in the same way.

Resale Property

ITP applies.

No VAT is payable.

New-Build Property

VAT (IVA) applies at 10%.

AJD (Stamp Duty) applies at 1.4% in the Valencian Community.

ITP does not apply.

This distinction is one of the first things buyers should understand when comparing new-build and resale properties.

Additional Costs Buyers Should Budget For

In addition to ITP, buyers should also consider:

l Legal fees.

l Notary fees.

l Land Registry fees.

l Administrative processing costs.

l Mortgage-related expenses (if applicable).

l Property insurance.

As a general rule, buyers of resale properties should budget approximately 11%–13% above the purchase price to cover all acquisition costs.

How CAROLA HOMES and Our Legal Partners Can Help

At CAROLA HOMES Real Estate, we assist buyers throughout Costa Blanca North and Costa Blanca South, from Orihuela Costa and Torrevieja to Finestrat, Altea and Calpe.

We work alongside trusted independent lawyers who can assist with:

l Tax calculations.

l Verification of applicable ITP rates.

l Due diligence checks.

l NIE applications.

l Property purchases.

l Tax filings after completion.

l Land Registry registration.

Our goal is to ensure that every buyer understands the full cost of purchasing property in Spain before signing any contract.

Frequently Asked Questions

Is ITP included in the purchase price?

No. ITP is an additional tax payable by the buyer.

Can non-residents benefit from reduced ITP rates?

In some circumstances, yes. Eligibility depends on the specific requirements established by Valencian legislation.

What happens if I do not pay ITP on time?

Late payment may result in surcharges, interest and penalties.

Do I pay ITP on a new-build property?

No. New-build properties are generally subject to VAT and AJD instead.

Can a lawyer pay and file the tax for me?

Yes. Most international buyers authorise their lawyer or gestor to handle the entire filing process after completion.

Buying Property on the Costa Blanca in 2026

Understanding ITP is an essential part of buying property in Spain.

If you are considering buying property on the Costa Blanca, the team at CAROLA HOMES Real Estate and our trusted legal partners will be happy to guide you through every stage of the process.