Buying a home in Alicante: the tax change that could help you save thousands of euros

Buying a property in Alicante could become even more attractive from 1 June 2026, especially if you are considering purchasing a resale property on the Costa Blanca. The reason is an important tax update: the general rate of Property Transfer Tax (ITP) in the Valencian Community will be reduced from 10% to 9% for many property purchases.

Although one percentage point may not seem like much, in a property purchase it can represent real savings. For example, on a property worth 250,000 euros, this reduction would mean approximately 2,500 euros less in taxes, provided the transaction is subject to the general rate.

This measure applies across the Valencian Community and is especially relevant for buyers interested in areas such as Urbanisation La Marina, San Fulgencio, Guardamar del Segura, Torrevieja, Ciudad Quesada, Cabo Roig, La Zenia or Benijófar. These are highly sought-after areas for those looking for sunshine, peace and quiet, nearby services and a property for holidays, investment or retirement.

Remember that, before signing, it is important to understand the costs involved in the purchase. ITP is one of the most significant costs when buying a resale property, and this reduction may make the overall budget more manageable.

Buying a property in Alicante: does ITP always apply or only to resale homes?

Buying a property in Alicante means clearly distinguishing between resale and new-build homes. In general terms, ITP applies to resale properties. If you buy a new-build property directly from a developer, the transaction is usually subject to VAT and AJD (Stamp Duty), rather than the general ITP rate.

That is why, before reserving a property, it is advisable to ask what type of transaction you are entering into. Buying from a private individual, a company, a bank or directly from a developer may not be the same. Each case can have different tax implications.

Some useful questions to ask before moving forward with the purchase are:

• Is the property resale or new-build?
• Is the seller a private individual, a company or a developer?
• Is the transaction subject to ITP, VAT or AJD?
• What will the approximate total cost be, including taxes and other associated expenses?

When and how does the buyer pay ITP?

Normally, the buyer must submit and pay the ITP after signing the public deed before a notary, within the legal deadline.

This procedure is carried out using Form 600, which is the official form for the self-assessment of ITP/AJD and is usually managed through a solicitor, tax representative or administrative agency.

What other costs should I consider when buying a property in Spain?

In addition to the payment of the property to the seller and the ITP, other costs should also be considered, such as legal fees, notary fees, property registry fees, a possible mortgage, NIE processing costs or currency exchange if the buyers are foreign.

As a general guideline, in Alicante it has traditionally been recommended to allow for between 12% and 14% extra on top of the purchase price for resale properties. With the reduction of ITP to 9%, this percentage could decrease slightly, although it will always depend on the property and the buyer’s personal circumstances.

Buying a property in Alicante with confidence: trust WATSONS REAL ESTATE, the estate agency that supports you from start to finish

Buying a property in Alicante should not be an improvised decision, especially if you live outside Spain or are unfamiliar with the local market. At Watsons Real Estate, we help international and national buyers find properties on the Costa Blanca with a friendly, professional and transparent approach.

Our team of estate agents in Urbanisation La Marina can guide you throughout the search, selection and purchase process, while always recommending that you seek independent legal advice to review taxes, documentation and procedures.

If you are thinking of buying a property in Alicante and want to do so with greater peace of mind, contact us:

• Fill in the contact form on our website.
• Email: enquiries@watsonsrealestate.net
• Telephone: +34 965 063 012 | +34 605 37 50 33
• Office: Calle Ámsterdam 2D – Urbanisation La Marina (San Fulgencio) 03177 Alicante

This article is for information purposes only and should not be considered legal or tax advice. Taxes and legal requirements may vary depending on the buyer, the type of property and the structure of the transaction. Buyers should always seek advice from an independent solicitor or qualified tax adviser before completing the purchase of a property in Spain.