Valencia's ITP cut to 9% means resale buyers save 1% versus new build VAT (10%) on the purchase price — approximately €2,000–3,000 on a typical transaction. But new build wins on: 10-year warranty, energy efficiency savings (often €1,000–2,000/year), no renovation costs, and typically stronger capital appreciation. For most buyers, the total ownership cost over 5+ years still favours new build.
The Valencian Community reduced its ITP (property transfer tax on resale purchases) from 10% to 9% in June 2026. At the same time, new build purchases continue to pay IVA (VAT) at 10% — a national rate unchanged by the regional reform.
This creates a situation that sounds counterintuitive: resale is now cheaper to buy in the Valencian Community than new build, on tax alone. For buyers comparing options, this deserves a proper analysis — not a headline.
The Headline Numbers: Tax Comparison
On a €250,000 property:
| | Resale (ITP 9%) | New Build (IVA 10%) | |--|--|--| | Purchase price | €250,000 | €250,000 | | Tax | €22,500 | €25,000 | | Stamp duty (AJD) | ~€1,875 (0.75%) | ~€3,750 (1.5%) | | Notarial/registry fees | ~€2,500 | ~€2,500 | | Total acquisition cost | ~€26,875 | ~€31,250 |
Resale is approximately €4,375 cheaper on acquisition costs for the same purchase price. That's the ITP cut's impact in practice.
This gap narrows significantly at higher price points because AJD on new build is higher (1.5% vs 0.75% on resale), but the base saving from ITP is still real and material.
Where New Build Recovers the Gap
The acquisition cost difference is real — but it's recovered through several channels during ownership.
Energy efficiency: €1,000–2,000/year saving
New build in Spain must achieve minimum B or A energy ratings. Resale stock from the 1990s–2000s typically rates C, D, or lower. The practical utility bill difference for a 90m² apartment:
Annual saving: approximately €1,080–1,440. Over 5 years: €5,400–7,200. The acquisition cost gap is recovered in 3–4 years on energy alone.
Maintenance and defects: new build warranty coverage
Resale properties often need investment post-purchase: air conditioning replacement, updated electrics, new kitchen or bathroom, roof repairs. Budgets of €5,000–20,000 for a 20-year-old Spanish apartment are common. New build provides a 10-year structural warranty and 3-year installation warranty — effectively zero unexpected maintenance costs in the first decade.
Capital appreciation: new build premium
Q1 2026 data shows new build appreciated 18.3% year-on-year while resale appreciated 11–14%. Over a 3-year ownership period, the appreciation gap on a €250,000 property compounds to a difference of approximately €12,000–18,000 in favour of new build. The €4,375 acquisition saving on resale is dwarfed by this differential at current appreciation rates.
Mortgage rates: no difference
Spanish banks price mortgages the same for new build and resale purchases. The financing structure is the only real difference — new build mortgages complete at handover, whereas resale mortgages complete at exchange.
When Resale Makes More Sense
The ITP cut genuinely improves the resale case in some specific scenarios:
Short holding period (under 3 years). If you plan to sell within 3 years, the lower acquisition cost matters more and the running-cost and appreciation advantages of new build have less time to compound. Resale is genuinely more cost-efficient for very short horizons.
Immediate occupancy. New build off-plan means waiting 18–30 months. If you need to move in now (retirement relocation, rental yield from day one), quality resale with a recent renovation is the practical answer.
Character and location. Some resale properties occupy locations, buildings, or styles that new build cannot replicate — a penthouse on Torrevieja's seafront, a townhouse in an old Spanish village centre, or a pool villa on a large established plot. Where uniqueness matters more than infrastructure quality, resale wins.
Higher resale price point. At €400,000+ purchase prices, the absolute acquisition cost difference widens (€4,000+ saving with ITP cut) and can shift the short-term balance more meaningfully toward resale.
The Total 5-Year Cost Comparison
Running a simplified total ownership cost model for a 5-year hold of a €250,000 property:
Resale at 9% ITP:
New build at 10% IVA:
The new build buyer is approximately €120,000 ahead over a 5-year hold — primarily driven by the higher appreciation rate, not the ownership costs. The €4,375 acquisition saving on resale is irrelevant at this scale.
*Note: these figures are illustrative using Q1 2026 appreciation rates, which may not continue at this pace. Individual properties vary significantly. This is not financial advice.*
Fazit
Valencia's ITP cut to 9% is genuinely good news for resale buyers — it reduces acquisition costs by approximately €2,000–5,000 depending on purchase price, and it makes the Valencian Community more competitive relative to other Spanish regions. But it doesn't change the fundamental new build ownership case.
For buyers who are going to own their Costa Blanca property for 5+ years, use it as a rental investment, or prioritise low-maintenance ownership, new build continues to win on total economics. The ITP cut is a meaningful improvement in resale value — not a reason to switch from new build to resale.
Browse our Costa Blanca new build listings to see what your budget achieves in the current market, or get in touch to discuss how the tax landscape affects your specific purchase situation.
Häufig gestellte Fragen
1Is resale now cheaper than new build to buy in Valencia?▼
2What is the actual saving from Valencia's ITP cut?▼
3Does the Valencia ITP cut apply to non-residents and foreign buyers?▼
4How does Valencia ITP compare to other Spanish regions?▼
5Why does new build pay more tax upfront than resale?▼
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