Valencia real estate tax explained: Key costs for buying property in Calpe

Table of contents: 

• Valencia real estate tax: new build
• Taxes for resale apartments
• Taxes when buying a plot of land to build on
• Seller’s tax and fees
• Valencia real estate tax: Buying a home or plot in Calpe

When talking about property investment in Spain, buying a home is just the first step. In addition to the price of the property you choose, you need to bear in mind other costs for processes and procedures required to complete the purchase. This applies to all types of properties, so if you’re thinking of buying a place in Calpe, keep reading. Today, we’re going to explain which Valencia real estate tax and fees you’ll need to consider when purchasing resale properties, plots of land or new builds in the Region of Valencia.

Valencia real estate tax: new build

When purchasing a new build in the Region of Valencia, there are two taxes that the buyer must pay. First, Value Added Tax (VAT), and second, the Tax on Documented Legal Acts (Impuesto sobre Actos Jurídicos Documentados or AJD in Spanish). In both cases, the deadline for paying these taxes is 30 working days after the purchase. 

What percentages are each tax? 

• The rate of VAT for new builds is 10%. However, if it is a subsidised housing property, the rate is reduced to 4%.
• AJD tax in the Region of Valencia is set at 1.5%. This general rate is currently one of the highest in the country. However, if the new build property is intended as a primary residence, AJD is reduced to 0.1%. Why? These types of reductions are frequently applied in Autonomous Communities with a strong tourism sector.
 

Taxes for resale apartments

The buying and selling expenses for resale properties vary according to the Autonomous Community. When purchasing a resale home in the Region of Valencia, neither Value Added Tax (VAT) nor the Tax on Documented Legal Acts (AJD) is payable. Instead, the Property Transfer Tax (Impuesto de Transmisiones Patrimoniales or ITP in Spanish) must be paid. The general rate of ITP in this region is 10%, although certain reductions may apply.

Currently, the following reductions on taxes for resale apartments can be applied to the ITP in the Region of Valencia:

• An ITP rate of 8% for the purchase of subsidised housing.
• An ITP rate of 8% if the buyer is under 35 years old and the property is intended as their primary residence.
• An ITP rate of 4% if the buyer has a physical disability of 65% or more, or a mental disability of 33% or more, provided the property is used as their main residence.

As with AJD and VAT, the Tax Office allows a period of 30 working days from the signing of the contract to pay ITP. It is important to keep this deadline in mind to avoid possible surcharges for late payment.

Additionally, it is also necessary to pay the Property Registry fees (Tasas del Registro de la Propiedad in Spanish) which involve notary, registration and administrative management costs. The expenses associated with handling the sale deed usually amount to around €3,000 in total, including notary fees, property registration fees at the Land Registry and management fees. These costs vary depending on the Autonomous Community, so it is important to check locally.

Taxes when buying a plot of land to build on

In the Region of Valencia, and especially on the Costa Blanca, buying plots of land to build on is a common practice. It is important to bear in mind that the taxes payable vary depending on the owner of the plot, that is, whether it is an individual, a company or a developer.

Below, we explain in detail which taxes and fees must be paid when purchasing a plot of land in the Region of Valencia:

• If the plot is purchased from a company, 21% VAT must be paid. In addition, the Tax on Documented Legal Acts (AJD) must also be paid, which is usually around 1%, although it can vary depending on the Autonomous Community. In the Region of Valencia, the rate is 1.5%.
• If the plot is purchased from a private individual, neither VAT nor AJD is payable. Instead, the Property Transfer Tax (ITP) must be paid, which ranges from 6% to 11% depending on the Autonomous Community. In the Region of Valencia, for the year 2025, the general rate of the Property Transfer Tax (ITP) is set at 10%. This tax is calculated based on the sale price or market value of the property, and it is the buyer’s responsibility to pay it.

In addition to the above taxes, buyers must also consider the cost of changing the ownership in the Land Registry, which is regulated by the state, as well as notary fees for the public deed. A useful way to get an approximate estimate, for informational purposes, is to use the tax calculator provided by the Tax Agency.

Seller’s tax and fees

Buying a property involves taxes, but not all of them are the responsibility of the buyer; sellers also face certain costs that both parties should be aware of.

Municipal Capital Gains Tax

Municipal Capital Gains Tax (Plusvalía in Spanish) is paid to the local council: in this case, Calpe Town Hall. The tax is calculated based on the property’s cadastral value and increases according to the length of time the property has been owned, up to a maximum of 20 years. To get an estimate, you can use online tax calculators, such as the one provided by Idealista. 

Capital Gains Tax (CGT)

Capital Gains Tax (CGT) is a tax payable when a profit is made from the sale of an asset, such as a property or investment, within Spain. When the sale price of the asset is higher than the original purchase price, the tax is applied to the difference, i.e. the gain. This tax forms part of the Personal Income Tax (Impuesto sobre la Renta de las Personas Físicas or IRPF) in Spain.

When selling a property in the Region of Valencia, it is important to distinguish whether the seller is a resident in Spain or not:

• For residents, CGT is paid through the annual Income Tax Return (Declaración de la Renta). This tax is calculated based on the difference between the registered purchase price and the sale price stated in the deeds. Significant exemptions may apply, such as the exemption for a primary residence, the exemption for those over 65 who have lived in the property for at least 3 years and reductions for assets acquired before 1995.
• Non-residents, on the other hand, are subject to a flat tax rate of 19% on the gains made from the sale of assets in Spain. In practice, the buyer withholds this percentage from the declared sale price in the deed and transfers it to the Spanish Treasury on behalf of the non-resident seller.

Valencia real estate tax: Buying a home or plot in Calpe 

If you're wondering why to invest in Calpe and what taxes apply when buying a new build property, a resale home or a plot of land, Grupo Esmeralda can assist you with all the necessary procedures transparently and with complete confidence. We also have the largest portfolio of real estate in Calpe and over 30 years of experience in the sector. Interested in visiting us? Get in touch: we’ll be happy to provide you with all the information you need.