Property Transfer Tax in Alicante: Pay 4% or 6% Instead of 10%

There is a moment that lasts a few seconds and is worth thousands of euros. The notary office sits on Pintor Lorenzo Casanova, or on Avenida de Maisonnave, or in some office in the Ensanche. You sign. You receive a set of keys. And then, within the next four weeks, you have to pay the ITP. It is the tax that appears when you buy a resale home in Alicante. The good news is that not everyone pays the same rate, and the gap between the general rate and a reduced rate is counted in thousands.

What ITP is and why only resales pay it

The Impuesto sobre Transmisiones Patrimoniales taxes the sale of a used home between private parties. The buyer pays, not the seller. A new build does not fall under it: there you pay VAT at 10% and AJD separately. If the apartment in Albufereta changed hands five years ago or five decades ago, it does not matter: if a private owner is selling, you pay ITP.

The change on 1 June 2026

Until 31 May 2026, the general ITP rate in the Valencian Community is 10%. It is one of the highest in Spain. From 1 June 2026, Law 5/2025 cuts it to 9%, unless the property exceeds one million euros (in that case it rises to 11%). The AJD, paid on the mortgage deed, also drops: from 1.5% to 1.4%. The law was published in the DOGV on 31 May 2025.

If you sign on 30 May, you pay 10%. If you sign on 1 June, you pay 9%. On a 200,000 euro home, that is 2,000 euros of difference. Not a small detail.

The reduced rates: from 8% down to 3%

Law 13/1997 of the Generalitat sets a sliding scale of reduced rates that remains in place after the reform. These are the ones most often applied to resales:

• 8% for general regime VPO: publicly protected housing of the general regime that will be your habitual residence.
• 6% for buyers under 35: first habitual residence, cadastral reference value or deed price not above 180,000 euros, prior year income tax base below 30,000 euros (individual) or 47,000 euros (joint).
• 4% for large or single parent families: habitual residence, valid Generalitat certificate, sum of family taxable income bases below 47,000 euros.
• 4% for buyers with a disability: 65% or more physical or sensory grade, or 33% permanent intellectual or mental grade. Habitual residence.
• 3% for special regime VPO: the most protected category, also habitual residence.

There is also a 4% rate for women who are victims of gender based violence and buy their habitual residence, with the same income limits as the 6% young rate.

How the taxable base is really calculated

This is the detail many discover late. The ITP taxable base is not the price written in the deed, unless that price is higher. The rule is simple: the Tax Office takes the higher of two figures, the deed price and the Catastro reference value. The reference value is published yearly on the Catastro electronic site, is public and free, and is found by the property cadastral reference.

An example from the neighbourhood. A flat in Benalúa that you record at 150,000 euros, with a cadastral reference value of 165,000. ITP is not on the 150,000, it is on the 165,000. If you are 32 with income below the cap, you pay 6% of 165,000, that is, 9,900 euros. As a standard buyer under the pre June rules, you would have paid 10% of 165,000: 16,500 euros. The 6,600 euro gap pays for the move, the appraisal and a fair amount of new furniture.

How you apply it: Modelo 600 and the deadline

The ITP is self assessed on Modelo 600 of the Agència Tributària Valenciana. The deadline is 30 working days from the deed date. Not 30 calendar days, working days. Weekends and Alicante holidays drop out, including the Bonfires of Saint John if you sign in May.

You file it electronically on the ATV site or, on paper, at a liquidation office. In Alicante, the ATV has a territorial branch; many notaries on Reyes Católicos street and in the Ensanche will offer to route it through a gestoría that files on your behalf, usually for 100 to 300 euros.

If you claim a reduced rate, you have to attach proof: a current large family certificate, a disability certificate, an ID showing your age, the prior year income tax return. The Tax Office reviews these claims often, and a formal slip can turn a 6% into a recalculated 10% with interest.

What happens if you miss the deadline

Missing the 30 working day window has automatic consequences. If you file Modelo 600 late without a prior request from the Tax Office, surcharges apply for out of time declaration (1% per month for the first twelve months and 15% from then on, plus late payment interest). If the Tax Office reaches you first, it becomes a tax infraction with a minimum 300 euro fine and possible extra surcharges on the amount due.

Think about ITP before, not after

ITP is one of those numbers that quietly change the real cost of your home. If you are under 35, if your family is large, if there is a recognised disability at home, it is worth a second look before signing the reservation. This is not tax advice: it is an honest conversation with your notary or an adviser before closing the price. A 4% instead of 10% on a property in Cabo de las Huertas means 12,000 euros that stay in your pocket.

At ESYS VIP we help you read the Alicante resale market with data, not with rush. Explore our properties or contact us if you want a no pressure conversation.