What taxes are paid when buying a home in Valencia

Category: General

Buying a house is not just choosing a home, negotiating a price and signing at the notary. Before reaching that moment, it is advisable to be very clear about what taxes are paid when buying a home in Valencia, what expenses appear during the process and how much real money you need to have prepared in addition to the purchase price.

At laHome we see it every day: many families arrive excited about a home, but with very normal doubts about the ITP, the VAT, the AJD, the notary office, the registry or the agency. And it is logical. Buying a home is usually one of the most important financial decisions in life, so understanding the numbers well is as important as falling in love with the house.

From our real estate agency in La Cañada, Paterna, we accompany national and international buyers in the Valencian Community. That is why we like to explain these topics clearly, without unnecessary technicalities and with a very simple idea: before signing, you must know what you are paying, why you are paying it and what economic margin you need after the purchase.

In this guide we explain the main taxes when buying a home in Valencia, whether you buy a second-hand home or if you buy new construction.

Before buying: the price of the home is not the final cost

The first common mistake is to think that if a home costs €250,000, that is all you will need. In reality, to the purchase price you have to add taxes and purchase expenses, which can represent a significant amount.

As a general rule, when you buy a home in Valencia you should provide additional savings to cover purchase taxes, notary fees, Property Registry, management, appraisal if there is a mortgage and possible expenses linked to the financing.

The key is to distinguish whether you buy a second-hand home or a new home, because the taxes are not the same.

If you buy a used home, the main tax will be Property Transfer Tax, known as ITP. If you buy a new home directly from a developer, you will normally pay VAT and AJD, that is, Documented Legal Acts.

At laHome we insist a lot on reviewing this point before signing the deposit. As a comprehensive real estate agency, our goal is not only to help you find a nice house, but to accompany you so that the operation makes sense from start to finish. Buying a home can be the beginning of a beautiful story, but that story is much more enjoyable when the numbers are clear.

Taxes when buying a second-hand home in Valencia: the ITP

When you buy a second-hand home in Valencia, the main tax you must pay is the ITP, or Property Transfer Tax.

This tax is levied on the transfer of a used home between individuals. That is, it applies when the seller is not a developer who sells you a new home, but rather a natural or legal person who transfers an existing home.

The ITP in the Valencian Community is a regional tax. This means that the rates may change depending on current regulations and depending on the characteristics of the buyer or the home. That is why we always recommend reviewing the specific case before signing, especially if you can benefit from a reduced rate.

What is the ITP

The ITP is the tax that the buyer pays for purchasing a used home. The seller does not pay it. Whoever buys pays for it.

The basis on which it is calculated is usually the highest value between the declared purchase and sale price and the cadastral reference value, when this exists and is applicable. This point is important because, even if you buy for a certain price, the Treasury can take another value as a reference if it is higher.

For example, if you buy a home for €220,000, but the reference value is €235,000, the tax may be calculated on €235,000. This detail can change the final cost of the operation quite a bit, and that is why it is advisable to check it before making decisions.

How much ITP is paid in Valencia

As of the date of writing this content, in May 2026, the general rate of the ITP in the Valencian Community is 10% for many purchases and sales of used housing, with a higher rate for larger transactions.

In addition, it is expected that from June 1, 2026, the general TPO rate for the acquisition of real estate will rise to 9%, and that the general rate of AJD will rise to 1.4%. This means that, if you are buying right in this period, the accrual date of the transaction can be especially important.

It is not the same to sign before or after a regulatory change, and that is why our recommendation is to always confirm the applicable rate with the Valencian Tax Agency, the notary or a specialized agency before closing the operation.

Reduced ITP rates

In some cases, the buyer can access reduced rates of ITP. These benefits usually depend on factors such as the age of the buyer, whether it is a primary residence, the value of the home, large family, single-parent family, disability, public housing or other personal circumstances provided for by the regulations.

This is where many people can save a significant amount, but also where we see the most mistakes. It is not enough to think “I am under 35 years old” or “this is my habitual residence.” Normally several requirements must be met at the same time and justified correctly.

Therefore, before calculating the tax automatically, it is advisable to check if there is any applicable tax benefit. At laHome we prefer to anticipate these questions from the beginning, because the client's time matters and because a well-prepared purchase and sale avoids surprises in the middle of the process.

Taxes when buying a new home in Valencia: VAT and AJD

If you buy one new home in Valencia directly to a developer, the usual thing is that you do not pay ITP. Instead, you will pay VAT and AJD.

The difference is very important: in used housing you normally pay ITP; In new housing you normally pay VAT and AJD.

How much VAT is paid for a new home

When purchasing a new home, the main tax is VAT, which is generally 10% of the purchase price. If it is officially protected housing under a special regime or public promotion, there may be different types, but in a normal new construction operation the buyer must have that 10%.

For example, if you buy a new home for €300,000, the VAT on the home would be €30,000. It is a relevant amount, so it must be part of the calculation from the first moment.

What is AJD

In addition to VAT, in new construction the AJD, or Documented Legal Acts usually appear. This tax applies to certain notarial documents, such as the public deed of sale when the operation is subject to VAT.

Therefore, if you buy new construction in Valencia, you must calculate not only the price and VAT, but also the AJD, in addition to the rest of the expenses linked to the operation.

Quick differences between ITP, VAT and AJD

To understand it in a simple way:

The key question is not only “how much does the house cost”, but “what type of operation am I doing”. That answer determines a good part of the home purchase taxes in Valencia.

Other expenses when buying a house in Valencia that you should also take into account

In addition to taxes, there are other expenses that you should anticipate.

Notary

The purchase and sale is signed before a notary. Notary fees depend on the price of the home, the length of the deed and other factors. They are not usually the highest expense of the operation, but they are part of the total budget.

Property Registry

After signing the deed, the home must be registered in the Property Registry. This procedure is essential so that the ownership is correctly registered.

Management

The agency can be in charge of filing taxes, processing documentation, coordinating payments and ensuring that everything is correctly registered. When there is a mortgage, it is common for the financial institution to intervene with an agency.

Appraisal and mortgage

If you need financing, the bank will request an appraisal. In addition, you will have to take into account the conditions of the mortgage: interest rate, commissions if any, linked insurance, term and monthly payment.

In our experience, the buyer feels much calmer when they see all these numbers together. For this reason, as a comprehensive real estate agency, we like to accompany the purchase from a complete perspective: housing, taxes, expenses, financing, documentation and timing.

Practical examples: how much you would pay according to the price of the home

The following examples are indicative. They serve to understand how taxes impact, but each operation must be reviewed with the current rate, the reference value and the personal circumstances of the buyer.

Example of a used home of €180,000

If you buy a second-hand home for €180,000 and we apply a general ITP of 10%, the tax would be:

€180,000 x 10% = €18,000

If a 9% rate were applied, the tax would be:

€180,000 x 9% = €16,200

The difference would be €1,800.

Example of a used home of €250,000

For a used home of €250,000, with a ITP of 10%:

€250,000 x 10% = €25,000

With a ITP of 9%:

€250,000 x 9% = €22,500

The difference would be €2,500.

Example of a used home worth €400,000

For a home worth €400,000, with a ITP of 10%:

€400,000 x 10% = €40,000

With a ITP of 9%:

€400,000 x 9% = €36,000

The difference would be €4,000.

Example of a new home for €300,000

If you buy a new home for €300,000, the usual calculation would be:

€300,000 x 10% of VAT = €30,000

To that we should add the AJD, calculated on the corresponding basis. If we take a rate of 1.5%, they would be:

€300,000 x 1.5% = €4,500

In total, only in VAT and AJD, we would be talking about €34,500, not counting notary, registration, agency or other expenses.

How and when purchase taxes are paid in Valencia

In sales of used housing, the ITP is settled using form 600. This model is used for self-assessments linked to the modalities of the Tax on Property Transfers and Documented Legal Acts.

In general terms, the usual period for submitting and paying the tax is 30 business days from the signing of the deed, although it should always be confirmed at the time of the operation.

The usual documentation may include a public deed of sale, DNI or NIE of the buyer, proof of payment, completed form 600, documentation that proves possible tax benefits, details of the home and reference value when applicable.

In practice, many people delegate this procedure to the agency or specialized professionals. And it makes sense: an error in the settlement, in the rate applied or in the tax base can be expensive.

Buying a home in Valencia as a foreigner: taxes and key points

Foreign buyers pay the same taxes when buying a home in Valencia as a national buyer, as long as the operation is the same. That is, if they buy used housing, they will pay ITP; If they buy a new home, they will pay VAT and AJD.

The difference is usually in the process. A foreign buyer may need NIE, a bank account in Spain, translation or explanation of documents, coordination with a notary, financing review, tax and legal support, and good time management if they live outside of Spain.

At laHome we speak five languages and work with clients from Spain, France, Germany, Belgium, the United Kingdom, the United States, Canada, China, Russia, Ukraine and Armenia, among other countries. This has taught us something very important: when someone buys far from their country, they not only need to find a home; you need to understand the process with confidence.

That is why we explain concepts such as ITP, VAT, AJD, reference value or model 600 in a simple and direct way. The relationship must be honest, professional and close, especially when the buyer is not familiar with the Spanish system.

Frequent errors when calculating home taxes

One of the most common mistakes is to calculate only the purchase price and forget about taxes. But he is not the only one.

Thinking that all homes pay the same

A used home does not pay the same as a new home. In one enters ITP; in the other, the VAT and the AJD.

Confusing the purchase price with the tax base

The tax can be calculated on the reference value if it is higher than the declared price. This point is important because it can modify the final fiscal cost of the operation.

Do not review reduced rates

Some buyers may be entitled to a reduced rate, but requirements must be checked. Failure to do so may mean overpaying.

Rushing the times too much

Signing without having reviewed taxes, financing, documentation and deadlines can generate unnecessary tension. In a sale, haste rarely helps.

Do not ask for accompaniment

Buying a house is an emotional, economic and legal decision. Our role as a family real estate agency is to help you look at the entire operation, not just the home. Our entire family is available to the client to offer a personal and professional service in the purchase or sale of properties in the Valencian Community.

So, how much money do I need to buy a home in Valencia

As a general guideline, if you buy a home in Valencia, you should have significant additional savings on the purchase price.

In used housing, this margin will mainly cover the ITP, notary, registration and management. In new housing, it will cover VAT, AJD and additional expenses.

A common rule of thumb is to calculate between 10% and 15% additional to the price of the home, although the actual figure will depend on whether there is a mortgage, the type of home, the reference value, the price and your personal circumstances.

For example, if you buy a used home for €250,000, you shouldn't just look at that €250,000. You should also calculate taxes and expenses to know if the operation really fits into your budget.

At laHome we often say that the most important asset in your life is your time. That's why we want to dedicate it to you: to help you filter, understand, compare and decide with peace of mind. Buying well is not buying quickly; buying well is buying with information.

Beyond taxes: a purchase accompanied from start to finish

At laHome we understand the purchase of a home as a complete process. It is not just about finding the house, calculating the ITP, the VAT or the AJD and signing at the notary. Many times, after buying, another equally important phase begins: preparing the home to move into, renovating it, protecting it, maintaining it or adapting it to the new stage of each family.

That is why we work with a vision of comprehensive real estate. We can also accompany you in services related to interior and exterior painting, pool and garden maintenance, punctual or weekly cleaning, moving and storage room, alarm systems, home insurance, renovations, garden design, pool construction, financing, architecture, energy certificates, occupancy certificates, new construction declarations, segregations or solar panels.

Our goal is that you don't have to look for each solution separately. We know that the most important asset in your life is your time, and that is why we want to dedicate it to you. Buying a home in Valencia can be much easier when you have a team that not only helps you choose a house, but also solve everything that comes after.

This way of working allows us to accompany the buyer in a much more realistic way. Because when someone buys a home, they are not always thinking only about the deed. Sometimes you need to paint before entering, renovate a kitchen, check the garden, install an alarm, take out insurance or study more appropriate financing. And having all those services nearby helps make the transition to the new home more comfortable.

At laHome we help you buy with clear numbers

We are a different, professional and innovative real estate company, based in La Cañada, Paterna, in the green lung of Valencia. We were born in 2014 thanks to the trust of the clients of the Piscilimp business group, a Spanish company linked to Valencia since 1988 and committed to society and the environment.

Today we are part of a family that has grown generation after generation. At the Piscilimp Group we are 35 people working as a team, and at laHome we organize our service to accompany the client in each phase of the purchase or sale of their property.

We like homes where we can live a beautiful love story, but we also like that story to start safely. Therefore, if you are thinking of buying a home in Valencia, we help you review not only the house, but also the expenses, taxes, times and important steps before signing.

In addition, we maintain a social commitment: for each exclusive sale we make a donation to the Spanish Association against Cancer. We believe that a real estate agency should also be part of its environment and contribute something positive to society.

Frequently asked questions about taxes when buying a home in Valencia

What taxes are paid when buying a home in Valencia

Depends on the type of home. If you buy a second-hand home, you normally pay ITP. If you buy a new home, you normally pay VAT and AJD.

How much is the ITP in Valencia

In May 2026, the usual general rate is 10% in many used housing transactions, although it is planned that from June 1, 2026 the general TPO rate for real estate will rise to 9%. It is always advisable to confirm the applicable rate on the exact date of the operation.

When is VAT paid and when is ITP paid

You pay ITP when you buy a used home. VAT is paid when you buy a new home directly from a developer.

What is AJD

The AJD is the Documented Legal Acts tax. When purchasing a new home, it is usually applied along with VAT, because the operation is formalized in a public deed subject to this tax.

Who pays the ITP

The ITP is paid by the buyer of the home.

How long do I have to pay the ITP

The usual period is 30 business days from the signing of the deed, although it should always be confirmed at the time of the operation and with current regulations.

Can a foreigner buy a home in Valencia

Yes. A foreigner can buy a home in Valencia. Normally you will need NIE, bank account, identification documentation and support to coordinate the operation well. Taxes depend on the type of home purchased, not the nationality of the buyer.

Know what taxes are paid when buying a home in Valencia

Knowing what taxes are paid when buying a home in Valencia is essential to make a good decision. If you buy a used home, the main tax will be ITP. If you buy new construction, the usual thing will be to pay VAT and AJD. To this you will have to add other expenses such as notary, registration, management, appraisal or financing.

The key is not to improvise. Before signing a deposit or committing to an operation, it is advisable to calculate the real cost of the purchase, check if you can access reduced rates, check the reference value and confirm the taxes applicable on the date of signing.

At laHomeWe accompany you so that you buy with enthusiasm, but also with peace of mind. Because a home is not just an investment: it is the place where a new stage begins.

Contact us, we will be happy to help you!