Taxes and Costs When Buying Premium Property in the Valencian Community
A clear and expert breakdown of the real costs associated with purchasing residential properties, new developments, and resale homes on the Costa Blanca.
- Legal Department
- May 2, 2026
- 6 min
Key takeaways
- The average additional cost of buying in the Valencian Community is around 11-13% of the final price.
- New builds are subject to a 10% VAT plus a 1.5% Stamp Duty (AJD).
- Resale properties are taxed via ITP, generally at 10%.
Understanding the fiscal landscape
When negotiating the acquisition of a property in the prime segment, the price agreed with the seller is only the taxable base of the operation. In the Valencian Community, the taxation of the transfer depends mainly on whether the asset is newly built or a resale.
New Build (Direct from Developer)
The acquisition of brand new properties (such as recently finished villas purchased directly from the developer) is subject to two taxes:
- VAT (Value Added Tax): Taxed at 10% of the purchase price.
- AJD (Stamp Duty - Actos Jurídicos Documentados): In the Valencian Community, this regional tax currently sits at 1.5%.
Resale (Property Transfers)
For pre-existing properties, VAT does not apply. The operation is subject to:
ITP (Property Transfer Tax - Impuesto de Transmisiones Patrimoniales): The general tax rate in the Valencian Community is 10%. It is essential to note that the tax authorities have implemented the “Cadastral Reference Value” as the minimum taxable base. If the market price is higher, taxes are paid on the deed price.
Additional Fees
To calculate the total provision of funds, formalization costs must be added:
- Notary and Land Registry: Regulated fees which, in operations over a million euros, can sum up to between 0.2% and 0.5%.
- Legal Fees: A specialized lawyer typically bills 1% of the operation’s value for comprehensive due diligence, an uncompromising requirement in transactions of this level.
The value of prior advisory
Structuring the purchase intelligently (personally versus corporate structure or wealth fund) requires prior analysis. Our recommendation is that tax and legal advice be integrated before presenting the first formal offer.