Property transfer tax cut to 9% in Alicante

Since 1 June 2026, the general rate of the ITP (Impuesto de Transmisiones Patrimoniales, Spain’s property transfer tax) in the Valencian Community is 9%, one point down from the previous 10%, under Ley 5/2025, of 30 May, the Generalitat’s tax measures law. If you’re buying a resale home in Alicante right now, this change is already in force and directly affects your closing costs.

What’s actually changed

The ITP is the tax paid by anyone buying a resale property (unlike VAT, which applies to new builds), and it’s settled within 30 working days of signing before a notary, through the Agència Tributària Valenciana (ATV, the regional tax agency), using form 600. Until May 2026, the general rate in the Valencian Community was 10%. From 1 June, that general rate drops to 9% for homes, commercial premises and plots. A rate of 11% still applies when a property’s value exceeds one million euros, so the cut doesn’t reach the highest value transactions.

The same law also lowers, from the same date, the general rate of AJD (Actos Jurídicos Documentados, stamp duty) from 1.5% to 1.4%. This second tax doesn’t apply to buying a resale home itself (that’s taxed under ITP, not AJD), but it does apply to other notarial acts common in a sale, such as splitting a building into separate units or dissolving joint ownership before a sale.

How much you pay now in Alicante

For example, using a hypothetical figure: on the purchase of a resale home for 200,000 euros, ITP goes from 20,000 euros (at the previous 10%) to 18,000 euros (at the current 9%), a saving of 2,000 euros in tax. The base the tax is calculated on isn’t always the price agreed in the deed; it’s the higher of that price and the reference value set by the Cadastre, so it’s worth checking that figure before finalising your buying budget.

Reduced rates: who pays less than 9%

The Agència Tributària Valenciana keeps reduced rates for certain buyers of their first main home: 6% for buyers under 35 when the value doesn’t exceed 180,000 euros (8% above that, with an income limit), and 3% for large or single parent families, people with disabilities, and survivors of gender based violence when the value doesn’t exceed 180,000 euros (4% above that). If you fit one of these categories, it’s worth checking the exact requirements with the ATV before budgeting the purchase at the general rate.

What this means if you’re buying in Alicante now

One point less of ITP doesn’t on its own decide whether now is the right time to buy, but it does lower the cost you need to set aside on top of the home’s price, alongside notary, land registry and gestoría fees. Most banks don’t finance these extra costs, so they typically come out of the savings you bring to the purchase, and one point less of ITP is one point less you need to put down yourself on completion day. This is a useful figure if you’re fine tuning the maximum budget you can bid with in a market where Alicante keeps setting new price per square metre records, and where, if you’re also financing the purchase, it’s worth keeping in mind the recent path of the Euríbor too.

What you can do now

If you’re looking to buy in Alicante and want to understand the full budget you need, taxes included, at Muela Ripoll we can help you review the homes that fit your range and point you to a gestoría or tax adviser to confirm the exact rate that applies to you. Get in touch with us and we’ll look at it together.