ITP in Alicante: how much you pay at 9%

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 ITP you pay by property price

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. Here’s what you’d pay at the general 9% rate depending on the price of the home:

Price of the home	ITP at 9%
€100,000	€9,000
€150,000	€13,500
€200,000	€18,000
€250,000	€22,500
€300,000	€27,000
€400,000	€36,000
€500,000	€45,000

These figures correspond to the general rate. If you’re buying above one million euros, the rate rises to 11% instead of 9%, as mentioned earlier. And if you fit one of the reduced rates covered in the next section, you’d pay considerably less than the table shows.

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.

Conclusion

To me, in a market where every euro of the budget counts, it’s worth sitting down calmly to see which row of the table your purchase falls into, and whether you fit one of the reduced rates, before taking anything for granted. Have you worked out yet how much you need to set aside just for tax on your purchase?