The scenario for real estate investment and the acquisition of homes in our region has just taken a very favorable turn. Today, June 1, 2026, one of the most eagerly awaited tax reforms in the Valencian Community comes into force: a direct reduction in the Transfer Tax on Property (ITP).
This measure significantly reduces the tax burden when purchasing second-hand homes, boosting the market in a location as sought-after as the strategic triangle between Valencia, Alicante and the Balearic Islands.
If you are planning to acquire a property to turn it into your next home or into a key asset for your family legacy, below we break down how this new regulation affects you and how you can make the most of it.
New ITP Rates Starting June 1, 2026
The main change brought by this reform is the reduction in the general tax rate, along with the retention of significant advantages and reduced rates for specific buyer profiles.
1. General Rates: Less tax for the middle class and investors
Transactions up to 1 million euros: The general rate drops from 10% to 9%. This 1% reduction means direct savings of thousands of euros in most residential transactions.
Transactions over 1 million euros: For properties included in the high-end market or Prime properties that exceed this figure, the top bracket of 11% remains in place.
2. Reduced Rates: Easier access to wealth
With the aim of making home ownership more accessible and supporting certain groups, an attractive set of bonuses is maintained and promoted by the Generalitat, reducing the tax to 3%, 4% or 6% depending on the buyer’s profile:
Young people (under 35): A reduced rate of 6% applies to the purchase of what will be their first usual home.
Large families, single-parent families and people with disabilities: They will benefit from an ultra-reduced rate of 3% (for homes with a value of up to 180,000 euros) or 4% if the amount of the property is higher.
Official Protected Housing (VPO): Depending on the property’s specific classification, reduced rates of 3%, 4% or 8% will be applied.
Critical Points You Must Consider Before Signing
As we always remind you at Heritage Prime Realty, the success of a real estate investment lies in the details and in proper legal planning. With this new law in mind, there are three essential factors you need to know:
The Deed Date Is What Matters
The application of the new reduced 9% rate is strictly linked to transactions formalized in a public deed before a notary from today, June 1, 2026. It is vital to clarify that the date on which the reservation contract or the deposit contract was signed is not binding for the accrual of this tax. What counts is the day of the definitive signing.
The Tax Base: Watch Out for the Reference Value
ITP is not calculated casually using any figure. The tax is applied on the actual price stated in the deed or on the Cadastral Reference Value—whichever is higher. A proper prior audit (Due Diligence) will prevent you from receiving additional assessments from the tax authorities.
Tax Settlement Deadlines
Once the notarial document has been authorized, the buyer has a 30 business-day period to file, process and settle the tax with the Valencian Tax Agency (ATV).
Plan Your Investment with Professional Security
Any tax break is excellent news, but for it to become a real long-term increase in wealth, it must be handled with rigor. Saving on purchase taxes is the perfect boost to look for properties with real value and genuine appeal, stepping away from purely speculative moves.
At Heritage Prime Realty, thanks to our status as qualified official real estate agents (API) and our direct strategic alliance with the law firm Agulló & Ronda, we offer our clients 360° advice. We take care of verifying the Reference Value of the property of interest, studying your profile to apply the largest possible bonus, and managing all the processing with the ATV transparently and securely.
Take advantage of this new tax framework to consolidate your wealth in one of Europe’s best areas for microclimate and quality of life.