As we’ve discussed in previous articles, buying a home is one of the most important decisions in anyone’s life, impacting both their personal and financial well-being.
In the Valencian Community, as in the rest of Spain, this process involves a series of costs in addition to the purchase price, with property taxes being one of the key aspects to consider due to their significant impact.
Understanding which taxes apply and how they affect the final price of the property is essential for properly planning the transaction and, above all, for avoiding unpleasant surprises that could hinder the purchase.
In this blog, we will analyze in detail the main taxes that affect the purchase of a home in the Valencian Community, as well as other related expenses, and offer practical recommendations (winnortips) for buyers.
The starting point: Purchase price
The price of properties advertised on real estate portals or by real estate agencies is just the beginning of the process.
In the Valencian Community at the beginning of 2026, the average housing price was around €1,980/m², consolidating a trend of sustained growth in the region. This value ranges between €1,400 and €2,400, depending mainly on the location and condition of the property.
Winnortip: Knowing the area where the property is located, its condition, and the competition from similar properties both in the same area and in similar areas is essential to establishing a market price for the property.
Taxes levied on the purchase transaction in 2026:
Taxes when buying a home depend mainly on whether the property is new construction (the property is bought directly from the developer) or resale (the property is usually bought from a private individual and represents the majority of real estate transactions).
In the first case, the tax levied on the purchase is VAT, and in the second, the tax paid by the buyer is ITP.
VAT (Value Added Tax)
If the property being purchased is newly built, the buyer pays VAT. This applies in the Valencian Community, as throughout Spain. This tax is paid directly to the seller, usually the developer or construction company, and is itemized on their invoice.
The tax rate applied to the purchase price will be:
General rate: 10%.
Officially protected housing (VPO): 4%.
Property Transfer Tax (ITP)
If the property being purchased is resale, the buyer pays ITP. If both the buyer and seller are individuals residing in Spain, the buyer self-assesses the tax with the Regional Ministry of Economy, Finance and Public Administration by submitting and paying form 600.
The tax rate applied to the purchase price will be:
- General rate: The general ITP tax rate in the Valencian Community is 10%.
- Reduced rates: Reduced rates are available for certain groups. For example, those under 35 who are buying their first home can benefit from a reduced rate of 8%. There are also reductions for large and single-parent families, people with disabilities, and subsidized housing.
Note: Property Transfer Tax (ITP) is a tax ceded to the Autonomous Communities; the percentages and conditions may change each year due to regional legislative changes. It is important to consult the regulations in force at the time of purchase.
Stamp Duty (AJD). The unexpected tax.
This tax is paid for the deed of purchase of a property at the notary’s office and its registration in the Property Registry. In the Valencian Community, the general Stamp Duty rate for the purchase of newly built homes is 1.5% of the value.
Winnortip: Taxation can be complex depending on the type of property being sold and the circumstances of the parties involved, such as whether one of the parties is a company or a non-resident. It is very important to know the specific tax implications of the property purchase before signing a preliminary sales agreement.
Other expenses to consider:
A number of professionals are involved in the purchase of a home, and their fees must be taken into account when calculating the total cost and determining whether the purchase is within your budget.
- A real estate agency will handle the negotiation, drafting of the preliminary sales agreement, coordination of the other professionals involved, and preparation of the transaction.
- If a mortgage is required, the bank will need a property appraisal to assess its viability.
- If the property lacks an energy efficiency certificate, a qualified technician will need to obtain one.
- A notary will formalize the property purchase, and the Land Registry will register the transaction and new ownership.
- A tax advisor or manager will handle all the paperwork and tax payments.
Winnortip: Keep in mind that taxes and expenses associated with buying a home can represent an average additional cost of 15% of the price (up to 20% if a mortgage is taken out). Run a simulation of the transaction, estimating all expenses, before signing a preliminary sales agreement.
Buying a house involves spending much more than the sale price. Taxes and professional fees can significantly increase the final cost of the purchase. Do you want us to help you plan the purchase of your future home? At Winnor, we are real estate experts and have the keys to avoid surprises and help you make the right decision.
