Changes to the ITP in June 2026: What you should know if you are buying a property in Jávea
What is the ITP and how does it affect property purchases in the Valencian Community?
When buying a property in the Valencian Community, it is important to take into account the Property Transfer Tax (ITP), which applies to second-hand homes.
The ITP is a regional tax that must be paid when an individual purchases a used asset, such as a pre-owned home. In the case of housing, it applies when the seller is a private individual and not a developer or company.
The main difference between ITP and VAT (IVA) lies in the type of property being purchased:
-
When buying a new property directly from a developer or builder, the buyer pays VAT, generally at 10%.
-
When buying a second-hand property, the transaction is subject to ITP, not VAT.
The ITP mainly applies to second-hand homes, but it also affects other non-business transactions, such as:
-
Properties acquired through inheritance or donation (although in these cases the Inheritance and Gift Tax also applies).
-
Properties awarded in auctions or repossession proceedings.
-
Premises, garages, or storage units purchased from private sellers.
Changes to the ITP from June 2026
Starting in June 2026, the general rate will be reduced from the current 10% to 9% for the purchase of second-hand properties valued up to €1,000,000.
A rate of 11% will apply when the property value, or the value of any real rights over it, exceeds €1,000,000.
Foreign buyers, particularly in areas such as the Costa Blanca, will also benefit from this reduction. This will make the region even more attractive for real estate investment, as the tax burden on second-hand property purchases will be lower.
Practical examples:
-
If you buy a villa in Jávea for €800,000, you will pay 9% ITP, that is, €72,000.
-
If you buy a luxury villa in Jávea for €1,500,000, since it exceeds one million, you will pay 11%, that is, €165,000.
Tips before buying a property in Jávea
Relying on the guidance of a local real estate agency with experience is essential to navigate the purchase process safely and to understand the particularities of the ITP.
A professional agent can not only inform you about applicable tax rates but also advise you on the best timing to formalize the purchase. In addition, they will handle all administrative and legal procedures, avoiding mistakes and ensuring the transaction is completed efficiently and securely.
Conclusion: Anticipating ITP changes can make a big difference
Adjustments in the Property Transfer Tax (ITP) rates can have a significant impact on the real estate market, especially in the luxury property segment in Jávea, where every detail matters when planning an investment.
Anticipating these changes allows buyers to save significantly and make more strategic decisions. In a dynamic and competitive market like Jávea, understanding the tax implications and planning ahead can be key to taking advantage of the best opportunities.
In this context, Eurojavea plays a crucial role in optimizing your investment. Thanks to their in-depth knowledge of the local market and current regulations, their team can provide personalized advice on tax rates, available incentives, and the best time to complete the purchase.
With careful planning and the support of local experts, you can maximize your investment’s profitability and ensure a secure, efficient, and future-focused property purchase.