More and more international buyers are looking to the Valencian Community to settle down or invest, drawn by the climate, the quality of life, and a market that continues to appreciate in value. But buying a home in Spain as a foreigner involves a series of specific taxes and procedures that you should be aware of before signing. If you’re considering taking the plunge, or if you’re a homeowner and might sell to a buyer from outside Spain, here’s what you need to know about the tax implications of Spanish real estate market in 2026.
The real estate market in Valencia is attracting more and more international buyers and sellers
According to S&P Global Ratings, one of the factors behind the sharp rise in prices forecast for Spain in 2026 is precisely the increase in immigration, along with strong employment and wages. Valencia is no exception to this trend: the city has become one of the favorite destinations for buyers from both within and outside the European Union, whether for a primary residence or for real estate investment—such as rental properties or second homes. This added demand is putting even more pressure on a market that already suffers from a structural supply shortage.
What taxes do you pay when buying a home in Valencia as a foreigner
The good news is that buying an apartment in Valencia does not mean paying different taxes simply because you are a foreigner: the taxes on the sale are the same for any buyer, whether or not they reside in Spain. What does change, however, is the tax treatment after the purchase, as well as certain specific obligations when the buyer or seller is not a tax resident in Spain. Understanding these differences in advance helps avoid unpleasant surprises once the deed has been signed.
ITP and VAT: The Difference Between Resale and New-Construction Properties in Valencia
For resale properties, the main tax is the ITP (Property Transfer Tax), which in the Valencian Community falls within the standard national range of 6% to 10%, depending on the case. For new-construction homes, however, VAT applies at 10% of the price, plus the IAJD (Stamp Tax) on the value of the deed, which typically ranges from 0.5% to 1.5%. As a rough guide, it’s advisable to set aside an additional 11% to 14% of the purchase price to cover taxes and associated expenses.
IRNR: The Annual Tax for Those Who Buy a Home in Valencia Without Residing in Spain
The real tax difference arises after the purchase. Non-resident owners of properties in Valencia must file the Non-Resident Income Tax (IRNR) return each year, at a rate of 19% for residents of the European Union, Iceland, Norway, and Liechtenstein, and 24% for residents of all other countries. If the property remains vacant during the year, the tax authorities consider it to be imputed income and require it to be taxed accordingly—something many foreign buyers are unaware of when they sign the contract.
The 3% withholding tax: a key consideration when selling your home to a foreign buyer
This obligation doesn’t just affect the buyer. If you’re thinking about selling apartments in Valencia and the buyer is a foreigner, it’s important to remember that when the seller does not reside in Spain, the buyer is required to withhold 3% of the property’s price as a payment on account of the seller’s IRNR (Non-Resident Income Tax) and remit it directly to the tax authorities. Failing to complete this procedure can result in penalties and complications with the property registry, so sound advice throughout the transaction is essential for both parties.
Why You Should Consult a Real Estate Agency in Valencia Before Buying a Home
Between the Property Transfer Tax (ITP), VAT, Stamp Duty (IAJD), Non-Resident Income Tax (IRNR), and withholding taxes, the tax implications of an international real estate transaction involve several layers that should be reviewed in detail before making a decision. Working with real estate agencies in Valencia that regularly handle international buyers and sellers makes all the difference: not only in finding the right property, but also in coordinating with the notary, administrative agency, and tax advisor to ensure the entire transaction closes smoothly.
At RK Quinta Avenida, we know that selling isn’t just about advertising—it’s about strategy—and that includes guiding international buyers and sellers every step of the way. If you want to buy, sell or invest in the Valencian Community with the support of a team that combines technology, digital marketing, and personalized service, contact us at quintaavenidainmobiliaria.com or call us at 963281119 / 676607208. Every story starts at home.
