Who is eligible for the reduced ITP in the Valencian Community? Requirements and key points

When buying a second-hand property, one of the most significant costs in the budget is the Property Transfer Tax (ITP). Depending on the property price, this can amount to several thousand euros, making it an expense worth factoring in before signing.

What many buyers do not realise is that there are situations in which this tax can be significantly reduced. The Valencian Government (Generalitat Valenciana) provides for different reduced rates for certain groups, which can result in substantial savings when purchasing a primary residence.

If you are thinking about buying a property in Valencia and want to know whether you qualify for the reduced ITP in the Valencian Community, this guide will help you identify the cases in which it applies, the requirements you must meet, and how much you could save.

What is the reduced ITP and how much can you save?

Before going into detail, it is worth understanding why this tax benefit is so relevant for property buyers.

The ITP is the tax applied to the purchase of second-hand properties. Therefore, if you buy a used property from a private individual, you will need to pay this tax.

New-build properties, on the other hand, are not subject to ITP but to VAT, which is generally 10% of the purchase price. This distinction is important because it directly affects the taxes and costs associated with buying a property.

Currently, the standard ITP rate in the Valencian Community is 9% for second-hand property purchases where the price does not exceed €1,000,000; above that threshold, the rate rises to 11%.

However, certain buyers may access reduced rates ranging from 3% to 8%, depending on their personal circumstances and the value of the property.

The difference can be considerable. For example, on a property worth €180,000:

• At the standard rate of 9%, the tax would be €16,200.
• At a reduced rate of 3%, the tax would be €5,400.

In this case, the saving exceeds €10,000.

That is why, before purchasing a property, it is worth checking whether you qualify for the reduced ITP in the Valencian Community, particularly if it is going to be your primary residence.

We recommend that you read this article → Buying a property as a couple with different financial contributions: options and legal advice

Who can benefit from the reduced ITP in the Valencian Community?

The regional regulations set out a number of scenarios that allow buyers to pay below the standard rate. Below, we review the main groups that can access this tax benefit.

Young people under 35

One of the most common cases is the reduced ITP for buyers under 35. The Valencian Government applies two different rates depending on the property value:

• 6% when the property value does not exceed €180,000.
• 8% when the price exceeds €180,000.

To access this benefit, the property must constitute the buyer’s first primary residence. This incentive aims to make it easier for young people — who typically face greater challenges in saving for a deposit — to get onto the property ladder.

Large families and single-parent families

Large families and single-parent families can also benefit from reduced rates when purchasing a primary residence. In this case, the applicable percentages are:

• 3% for properties valued at up to €180,000.
• 4% for properties exceeding €180,000.

People with disabilities

People with a recognised disability may also access the reduced ITP in the Valencian Community when purchasing a primary residence. The applicable rates are:

• 3% for properties up to €180,000.
• 4% for properties above that value.

The regulations require proof of a specific degree of disability, which varies depending on the type of recognised disability.

Women who are victims of gender-based violence

Women who are victims of gender-based violence are also entitled to a reduced tax rate. The percentages are the same as in the above cases:

• 3% for properties up to €180,000.
• 4% for properties exceeding that amount.

The aim is to facilitate access to a primary residence and support the residential independence of those in this situation.

Buyers of social housing (viviendas protegidas)

The purchase of social housing (protected housing) can also benefit from reduced ITP rates, although the applicable percentage depends on the type of official protection and the value of the property.

For general regime social housing intended as the buyer’s first primary residence, the applicable rate is:

• 6% when the property value does not exceed €180,000.
• 8% when it exceeds that amount.

For special regime social housing, an even lower rate applies:

• 3% for properties up to €180,000.
• 4% for properties above that value.

For example, the purchase of a special regime social housing unit valued at €170,000 could be taxed at 3% instead of the standard 9% — meaning €5,100 in ITP instead of €15,300.

Requirements for the reduced ITP in the Valencian Community

Although each scenario has its own specifics, there are a number of common conditions to be aware of.

The property must be your primary residence

In most cases, the main requirement is that the property will serve as the buyer’s primary residence. The tax benefit is not intended for holiday homes or properties acquired for investment purposes. When we talk about the reduced ITP for primary residences, the property must genuinely be used as a permanent home.

Proving your personal or family circumstances

Another requirement for the reduced ITP in the Valencian Community is providing documentary proof of the situation that entitles you to the reduction. For example:

• Large family certificate.
• Single-parent family certificate.
• Certificate of disability.
• Documentation proving victim status for gender-based violence.
• Proof of age for the under-35 reduced ITP.

Having this documentation ready from the outset makes the process smoother and avoids issues further down the line.

Completing the purchase correctly

Although it may seem obvious, it is also important that the sale and purchase agreement is drawn up correctly and that all the information in the title deed is consistent with the requirements for applying the tax benefit. If in any doubt, always consult a specialist before submitting the tax return.

How much can you save with the reduced ITP?

The saving will depend on the property value and the reduced rate that applies in each case. Here are some indicative examples:

As can be seen, the financial impact is not negligible. In some cases, the saving easily exceeds €10,000. That is why checking whether you meet the requirements for the reduced ITP in the Valencian Community should form part of any property purchase planning.

What is the deadline for paying ITP in the Valencian Community?

Once the sale and purchase deed has been signed before a notary, this matter should not be left for later. The Property Transfer Tax has a submission and payment deadline that must be respected to avoid surcharges or penalties.

In the Valencian Community, the self-assessment must be submitted within 30 working days from the date the purchase is formalised (i.e., from the date of signing the deed), as weekends and public holidays are not counted.

If this deadline is exceeded, the tax authority may impose surcharges, interest and, in certain cases, penalties. Furthermore, delaying payment can complicate subsequent procedures related to registering the property at the Land Registry.

For this reason, it is advisable to prepare all the necessary documentation before signing, or at least during the first few days after completing the purchase.

Steps for paying ITP in the Valencian Community

Most buyers delegate this process to the notary’s management office (gestoría) or a specialist tax adviser. This is the most convenient option and the one that tends to generate the fewest complications, especially when there are applicable reductions or reduced ITP scenarios.

However, if you prefer to complete the self-assessment yourself, these are the steps you will need to follow:

1. Gather all the documentation

Before starting the process, you will need:

• Authorised copy or simple copy of the deed of sale.
• National ID (DNI) or NIE of the buyers.
• Cadastral details of the property.
• Supporting documentation for any applicable tax benefits or reduced rates.
• Bank account details for making the payment if a tax liability arises.

2. Calculate the applicable tax

The next step is to determine which tax rate applies to your situation. This is where you should check whether you are entitled to the reduced ITP for primary residences or any of the special cases provided for by the Valencian Government for buyers under 35, large families, people with disabilities, or victims of gender-based violence.

3. Complete Form 600 (Modelo 600)

The ITP self-assessment is completed using Form 600 (Modelo 600), which can be submitted in person or electronically via the Valencian Government’s online office. This form includes details of the buyer, the seller, the property, and the amount of tax to be paid.

4. Make the payment

Once the form has been completed, the corresponding payment must be made. Payment can be made through the systems provided by the Valencian Government or via authorised collaborating financial institutions.

5. Submit the self-assessment

The final step involves submitting the documentation together with the payment receipt. Once the process is complete, you will receive confirmation that the tax has been correctly settled, which is required for any other procedures relating to the property purchase.

Is it worth doing it yourself?

Although it is a relatively straightforward process, many buyers choose to use a specialist. This is especially true when there is any uncertainty about the application of a reduced ITP rate in Valencia. In such cases, professional advice is always recommended. The cost of a gestoría (management office) is typically low compared to the problems that can arise from an incorrect or late self-assessment.

How can Monserrate help you?

Every property transaction is different, and small details can have a significant impact on the final cost of a purchase. Before signing, it is worth checking whether any tax benefits apply — such as the reduced ITP for primary residences — and ensuring that all the requirements set out by regional regulations are met.

At Monserrate Inmobiliaria, we support our clients throughout the entire buying process, providing personalised, hands-on guidance to ensure that every decision is made with the fullest possible information.

Contact us and we will help you check whether you meet the requirements for the reduced ITP so you can complete your purchase with confidence and avoid unnecessary costs.