How much wealth tax do you pay in the Comunidad Valenciana from 2025?
Since 1 June 2025, the exemption for wealth tax has been doubled
from €500,000 to €1,000,000 per person.
For residents, there is an additional exemption of
€300,000 for the main residence. In practice, this means that
a resident only pays wealth tax above €1,300,000 per person,
or €2,600,000 for a couple.
For non-residents (such as most Belgians and Dutch with a holiday home),
only the general exemption of €1,000,000 applies. The additional
€300,000 exemption only applies to the main residence of residents in Spain.
Example resident (Alicante): apartment worth €400,000 + investments worth €700,000 = €1,100,000.
→ fully exempt (below the €1,300,000 threshold).
Example non-resident (Calpe): holiday home worth €500,000.
→ fully exempt (below the €1,000,000 threshold).
What changes in inheritance and gift tax for family members?
The almost complete exemption of 99% for spouses and children
remains in place. This applies to both residents and non-residents with Spanish property.
From 1 June 2026, other family members will also benefit from a tax reduction:
- 25% reduction starting June 2026
- 50% reduction starting June 2027
Example (Dénia, Costa Blanca North): an apartment worth €200,000 inherited by a brother.
Before 2025: tax approx. €20,000. From 2026: approx. €15,000. From 2027: approx. €10,000.
Non-residents from Belgium or the Netherlands also benefit from this in the case of an
inheritance or gift of Spanish property in the Comunidad Valenciana.
Will buying a house in the Comunidad Valenciana become cheaper?
For transfer tax (ITP), the general rate remains for now at
10%.
However, Law 5/2025 provides for a possible reduction to 9% for homes up to €1,000,000.
This measure is being discussed and is expected to come into force on 1 June 2026.
For homes above €1,000,000, the rate remains 11%.
- Homes up to €1,000,000 → currently 10% (proposed reduction to 9%)
- Homes above €1,000,000 → remains 11%
- Stamp duty → reduced from 1.5% to 1.4% (effective since 1 June 2025)
Example (Orihuela-Costa, Costa Blanca South): purchase of a villa worth €750,000.
Current situation (until 31 May 2026): 10% = €75,000.
New situation (after proposed reduction): 9% = €67,500.
Saving: €7,500 (excluding additional stamp duty reduction).
Whether you buy an apartment in Torrevieja or a villa in Jávea,
the acquisition costs will structurally decrease.
Why are these rules interesting for expats, non-residents, and investors?
With these reforms, the Comunidad Valenciana is clearly aiming for a more attractive tax climate.
This offers benefits for several groups:
- Expats living in Spain: higher exemptions and lower tax burdens on gifts and inheritances.
- Non-residents (Belgians and Dutch with a second home): save thousands of euros on purchases and pay less inheritance tax.
- Investors: improve returns thanks to lower transaction costs and more favorable tax rules.
How does the Comunidad Valenciana differ from other Spanish regions?
Taxation in Spain is largely regional.
What applies in the Comunidad Valenciana does not automatically apply in regions such as Andalusia, Madrid, or Catalonia.
For those considering emigration or buying a second home, this difference can be decisive.
With these reforms, the Comunidad Valenciana positions itself as one of the most attractive regions.
How can you personally benefit from these new tax rules?
Every situation is different. Whether you live permanently in Spain, own a second home, or want to pass on your wealth efficiently: the new legislation can provide significant advantages. Do you live in Valencia city, own an apartment in Alicante, or are you considering a villa in Jávea, Moraira, or Torrevieja? Then now is the perfect time to see how you can make the most of these reforms. Feel free to contact us for a personal consultation about real estate in Valencia.
Summary: three key points
- Wealth tax exemption: €1,000,000 for everyone; + €300,000 only for residents with main residence.
- Lower inheritance and gift tax: for extended family from 2026 and 2027.
- Lower real estate purchase costs: partially since 2025 (stamp duty reduction), fully from June 2026 (ITP reduction).
Frequently Asked Questions (FAQ)
How much wealth tax do you pay as a non-resident?
Non-residents (such as Belgians and Dutch with a second home) are only taxed on their Spanish assets.
Thanks to the new rules, an exemption of €1,000,000 per person applies.
The additional €300,000 exemption only applies to residents’ main homes.
How much wealth tax do you pay as a resident?
Residents have the same €1,000,000 exemption, plus an additional €300,000 for their main residence.
In total, €1,300,000 per person.
Does the 99% reduction in inheritance tax for children and spouses remain?
Yes. For spouses and children, the almost complete exemption remains.
This also applies to non-residents who inherit or pass on Spanish property.
How much inheritance tax do brothers and sisters pay?
Until 2025, the normal rate applies.
From 1 June 2026, brothers, sisters, uncles, aunts, nephews, and nieces receive a 25% reduction,
which rises to 50% from June 2027.
This benefit also applies to non-residents.
Will buying a house in Alicante or the Costa Blanca become cheaper?
Partially. Since June 2025, stamp duty has been reduced from 1.5% to 1.4%.
The reduction in transfer tax from 10% to 9% for homes up to €1,000,000 will only take effect from 1 June 2026.
For homes above €1,000,000, the rate remains 11%.
Does this tax reduction also apply in Andalusia or Madrid?
No. Taxes vary by region. The reforms of Law 5/2025 apply only in the Comunidad Valenciana.
Why do so many Belgians and Dutch choose the Comunidad Valenciana?
Besides the pleasant climate and high quality of life,
the favorable tax framework plays a key role.
Lower purchase costs (from 2026), higher exemptions, and reduced inheritance/gift taxes
make the region particularly attractive for second homes and investments.