Valencian Law 5/2025 of 30 May introduced several tax cuts that already apply in 2026. If you are buying a home, inheriting from a relative or have significant assets in the Valencia region, these changes matter to you.
Buying a resale home: transfer tax down to 9%
For purchases whose taxable event takes place from 1 June 2026, the general rate of the property transfer tax (ITP) falls from 10% to 9%. In practice, the date of the deed of sale is what counts. On a €300,000 home, that saves €3,000.
The tax is calculated on the higher of two values: the price in the deed or the Land Registry reference value. Reduced rates still exist for certain groups (young buyers, large families, people with disabilities…), with specific requirements worth checking before signing.
New homes and mortgages: stamp duty down to 1.4%
Stamp duty (AJD), paid when buying a new-build home (together with VAT) and on certain deeds, falls from 1.5% to 1.4% from the same date, 1 June 2026.
Inheritances and gifts between siblings, uncles, aunts, nephews and nieces
Until now, the region’s main tax benefit — the 99% allowance — applied only to spouses, children, grandchildren and parents. The new law creates an allowance for second- and third-degree relatives (siblings, uncles, aunts, nephews and nieces):
- 25% of the tax due for taxable events from 1 June 2026;
- 50% from 1 June 2027.
It is a reduction of the tax, not an exemption, and it does not apply to relatives by marriage (in-laws).
Wealth tax: €1 million threshold
For tax accruing from 31 December 2025, the tax-free threshold rises from €500,000 to €1,000,000. Many taxpayers who used to file will no longer have to.
Our advice
If you are planning a purchase, a gift or have an inheritance in progress, check the dates: a few days can change the tax due. At Rosmedian Law we calculate the tax cost of your transaction and help you apply every available reduction. We work in English, Spanish and Russian.
