Buying a New Build or a Resale Property in Spain? Here's What You Need to Know About Property Taxes in 2026
Buying a New Build or a Resale Property in Spain? Here's What You Need to Know About Property Taxes in 2026
Are you planning to buy a property on the Costa Blanca? Besides the purchase price, it's important to understand the taxes and additional costs involved. One of the most common questions buyers ask is:
Do I pay the same taxes when buying a new-build property as I do when purchasing a resale property?
The answer is no. The taxes differ significantly, and since 2026 there have been important changes in the Valencian Community. In this article, we explain the differences.
Resale Property: 9% Property Transfer Tax (ITP)
If you purchase a resale property on the Costa Blanca, you pay Property Transfer Tax (ITP – Impuesto sobre Transmisiones Patrimoniales).
Since 1 June 2026, the general ITP rate in the Valencian Community has been reduced from 10% to 9%.
This means substantial savings for buyers.
Examples
- Property price: €250,000 → €22,500 ITP
- Property price: €350,000 → €31,500 ITP
- Property price: €500,000 → €45,000 ITP
Compared to the previous tax rate, buyers save €2,500, €3,500, and €5,000 respectively.
New-Build Property: 10% VAT (IVA)
When buying a new-build property, you do not pay Property Transfer Tax.
Instead, you pay:
- 10% VAT (IVA) on the purchase price.
- 1.4% Stamp Duty (AJD – Actos Jurídicos Documentados).
The VAT rate remains unchanged at 10%, while the AJD rate in the Valencian Community was reduced to 1.4% from 1 June 2026.
A Quick Comparison
| Property Type | Taxes |
|---|---|
| Resale Property | 9% ITP |
| New-Build Property | 10% VAT + 1.4% AJD |
In addition to these taxes, buyers should also budget for other purchase costs such as notary fees, Land Registry fees, legal assistance, and, where applicable, mortgage-related costs.
Does This Mean New Builds Are More Expensive?
Not necessarily.
Although the purchase taxes on new-build properties can be slightly higher, they also offer several important advantages:
- Excellent energy efficiency.
- Modern architecture and high-quality finishes.
- Developer warranties.
- Lower maintenance costs during the first years.
- Access to premium communal facilities such as swimming pools, landscaped gardens, fitness centres, and wellness areas.
Resale properties, on the other hand, often offer:
- Prime and well-established locations.
- Immediate availability.
- More character and charm.
- Competitive purchase prices.
The best option ultimately depends on your lifestyle, budget, and long-term goals.
Which Property Is Right for You?
If you're looking for a modern home with the latest features and minimal maintenance, a new-build property could be the perfect choice.
If you prefer an established neighbourhood, proximity to the beach, or a property with traditional Spanish character, a resale home may be the better option.
Let Our Experts Guide You
Buying property in Spain is different from buying in many other countries. Understanding the applicable taxes and purchasing costs is essential before making your decision.
At Ritamar Properties, we guide you through every step of the buying process. We explain all applicable taxes and costs, provide expert advice, and ensure your purchase is smooth, transparent, and stress-free.
Looking for Your Dream Property on the Costa Blanca?
Whether you're searching for a stylish new-build apartment or a charming resale villa, our experienced team is here to help.
Contact Ritamar Properties today for personalised advice and discover the best property opportunities on the beautiful Costa Blanca.
