Purchasing a property is an exciting journey, but beyond the purchase price itself, there are additional costs that must be taken into account.
Homebuyers in Spain, whether purchasing a new-build property or a resale property, must consider a number of associated costs and taxes, the amounts of which are far from negligible.
It is important to note that the sale prices shown on online property portals or in real estate agency windows do not include taxes, which represent the largest expense associated with buying a home.
Below is a breakdown of the costs and taxes applicable in the Valencian Community to help you plan your real estate investment in this region:
1. Property Transfer Tax (ITP) or Value Added Tax (VAT):
Resale Properties: For second-hand properties, the applicable tax is the Property Transfer Tax (ITP). In the Valencian Community, the general rate is 10% of the property value, unless the value exceeds one million euros, in which case the applicable rate is 11%.
However, as of 1 June 2026, the general 10% rate will be reduced to 9%, while the 11% rate will remain in force for properties valued at over one million euros, in accordance with Article 33 of DOGV No. 10120 of 31 May 2025 (Law 5/2025).
New-Build Properties:
If you purchase a new-build property, you must pay VAT, the general national rate of which is 10%, with no changes currently planned for 2026.
2. Stamp Duty (AJD): This is another tax payable when purchasing a new-build property. Simply put, it is the tax charged for “formalising and giving legal validity” to certain documents. The rate generally ranges between 0.5% and 1.5% of the purchase price.
3. Notary Fees: These are regulated by an official fee scale approved by the State and vary depending on factors such as the purchase price, the number of parties involved, the number of pages and copies, among others. Typically, they range between €500 and €1,500.
4. Land Registry Fees: The costs associated with registering the deed of sale at the Land Registry usually range between 0.15% and 0.3% of the purchase value.
5. Conveyancing / Administrative Fees (Gestoría): In some cases, buyers choose to hire a gestoría to handle administrative procedures, which entails an additional cost depending on the services contracted.
6. Municipal Taxes and Other Additional Costs: Other expenses should also be considered, such as property valuation fees (if applying for a mortgage), Property Hunter fees if you have hired someone to search for the property on your behalf, or the annual Property Tax (IBI).
Although the law establishes that the IBI must be paid by whoever owns the property as of 1 January of the year in which the sale takes place, the seller and buyer may agree that the buyer assumes the proportional part corresponding to the days of the year during which they own the property.
At Magenta Living, we are here to support you and explain every detail so you can plan your purchase with confidence and carry out your project stress-free.
If you need more information, don’t hesitate to contact us — we’re here to help you every step of the way.