This summer, buying a second-hand home on the Costa Blanca is cheaper: Everything you need to know about the tax cuts

This summer brings particularly interesting news for those considering buying a second-hand home on the Costa Blanca. Purchasing a used property in the Valencian Community may now be more attractive from a tax perspective, as the general rate of Property Transfer Tax is set at 9% for most real estate transactions.

Simply put: if you are going to buy a second-hand home in Alicante, Orihuela Costa, Torrevieja, Guardamar, Ciudad Quesada, Jávea, Moraira, Calpe or other areas of the Costa Blanca, this price drop can help you reduce one of the most important expenses of the transaction.

And in a market as competitive as the Costa Blanca, where many international buyers seek sun, beach, quality of life and a home in Spain, any savings in purchase costs can make all the difference.

Buying a second-hand house on the Costa Blanca: what tax do you pay?

When you buy a new home directly from a developer, VAT is usually applied. However, when you buy a resale property, you typically pay Property Transfer Tax, known as ITP.

This tax is one of the main expenses that any buyer must consider. It's not part of the property price, but it is included in the total budget needed to complete the transaction. Therefore, when the Property Transfer Tax (ITP) decreases, the purchase can become more affordable.

The Costa Blanca belongs to the Valencian Community, so this tax change directly affects those who wish to buy a resale property in the province of Alicante.

What does the reduction in the ITP mean for the buyer?

The main advantage is clear: by reducing the general tax rate, the buyer needs to allocate less money to taxes at the time of purchase.

Until now, for many resale property transactions in the Valencian Community, the Property Transfer Tax (ITP) was one of the costs that had the greatest impact on the final budget. With the new general rate of 9%, buyers can have more leeway for other expenses associated with the property , such as notary fees, registration fees, administrative fees, minor renovations, furniture, decoration, or improvements to the property.

For example, on a second-hand home valued at €250,000, a one percentage point reduction in tax can result in savings of approximately €2,500. On a home valued at €400,000, the savings could be around €4,000. And on higher-value properties, the difference can be even more significant, provided no special tax brackets or rates apply.

Therefore, buying a second-hand house on the Costa Blanca this summer can be especially interesting for those who were already considering taking the plunge and just needed one last reason to decide.

An opportunity for international buyers

The Costa Blanca remains one of the most attractive areas in Spain for buyers from the United Kingdom, Belgium, the Netherlands, France, Germany, Poland, Sweden, Norway and other European countries.

The reason is easy to understand: more than 300 days of sunshine a year, Mediterranean beaches, golf courses, marinas, international services, good air connections and a wide range of real estate to suit different lifestyles.

Many buyers are looking for a second home for holidays. Others wish to spend extended periods in Spain. There are also those seeking a retirement home near the sea or a property with holiday rental potential, always taking into account applicable regulations.

In all these cases, the tax reduction can make the decision easier. Not because the property is the only important factor, but because buying with a clearer and more manageable expense structure provides peace of mind.

Why might now be a good time to buy a used home on the Costa Blanca?

The resale property market has a significant advantage: it provides access to existing homes, established locations, and properties ready for viewing. Often, it also allows you to find houses near the beach, apartments in complexes with swimming pools, villas with gardens, or homes in areas where new construction is scarce.

Furthermore, since these are resale properties, the buyer can more easily check the orientation, the actual views, the surroundings, the community, nearby services and the condition of the property.

For those who want to buy with confidence, this is invaluable. The Costa Blanca has very different areas, each catering to a different type of buyer:

• Orihuela Costa, ideal for those looking for beach, services, golf and an international atmosphere.
• Torrevieja, a coastal city with a wide range of housing, leisure and services available throughout the year.
• Guardamar del Segura, perfect for those who value natural beaches and a quieter environment.
• Ciudad Quesada, highly sought after by European buyers looking for villas, golf and residential areas.
• Jávea, Moraira or Calpe, areas highly valued by those looking for exclusive properties on the Costa Blanca North.

The reduction in the Property Transfer Tax (ITP) alone won't change the type of home you need, but it can improve the buying environment. And when combined with a good selection of properties and professional advice, it can become an excellent opportunity.

It's not all about price; buying well is also important.

A tax reduction is good news, but it shouldn't be the sole factor in making a decision. Buying a house in Spain requires carefully considering the property, its location, legal status, associated costs, and intended use.

Before choosing a second-hand property on the Costa Blanca, it is advisable to ask yourself a few questions:

• Do I want to live here year-round or just come on vacation?
• Do I prefer a home near the beach or in a quieter area?
• Do I need a pool, garage, elevator, garden, or terrace?
• Am I looking for a move-in ready property or am I willing to do renovations?
• Am I interested in renting the property when I'm not using it?
• Do I know all the purchase and maintenance costs?

Answering these questions helps you make a more informed purchase . Because a good purchase isn't just about paying less tax, but about choosing a home that truly fits your plans.

Buying a second-hand house on the Costa Blanca with greater peace of mind

One of the biggest fears for many buyers, especially those living outside of Spain, is not fully understanding the process. Taxes, contracts, reservations, notary, registration, utilities, homeowners' association, insurance… there are many steps, and it's normal to have questions.

That's why it's so important to have a real estate agency specializing in the area. Good support helps you understand what you're buying, what expenses you should anticipate, and what steps you'll need to take before receiving the keys.

At Costa Invest, we understand that buying a home in Spain is a significant decision, both financially and emotionally. For many clients, it's not just an investment: it's the start of a new chapter, a place to relax, spend time with family, enjoy sunny winters, or experience the Mediterranean with greater freedom.

Does the tax reduction apply to all homes?

The standard 9% tax rate applies to many property purchases, but there are exceptions and special cases. For example, when the property value exceeds €1,000,000, a different rate may apply. Reduced rates may also exist for certain profiles or situations, provided the established requirements are met.

Therefore, although the news is positive, it's advisable to review each transaction individually. Not all buyers have the same circumstances, and not all properties are taxed the same way.

The key is to be informed before making decisions. Knowing how much you'll pay, what documentation you need, and what expenses you should anticipate prevents surprises and allows you to buy with greater confidence.

An opportunity to decide calmly, but without leaving it too long

The tax reduction could increase interest in resale properties on the Costa Blanca. And in areas with high international demand, good properties don't usually stay on the market for long.

This doesn't mean rushing into a purchase. It means making an informed purchase. Reviewing options, comparing areas, understanding costs, and seeking advice from professionals who know the local market.

If you've been thinking about buying a home in Spain for a while, this summer might be a good time to take a fresh look at the market. Perhaps that house near the sea, that apartment with a pool, or that villa with a terrace that previously seemed a bit out of reach, now fits better within your overall budget.