Buying your first home in the Valencia region in 2026: taxes and aid
If you live in the Valencia region and are buying your first home, you can pay less tax and finance more of the price. Since 1 June 2026 transfer tax is 9%, buyers under 35 can pay 6% or 8%, and the Generalitat can guarantee up to 20% of the price so the bank lends up to 100%.
Key points
- Since 1 June 2026 transfer tax (ITP) is 9%; under-35s buying their first home pay 6% up to €180,000 and 8% above.
- The IVF guarantee covers up to 20% of the price, so the mortgage can reach 100% (homes up to €311,000, buyers aged 18–45).
- Under-35s can also deduct 5% of what they pay each year for their first home in their income tax.
Transfer tax (ITP): what you pay in 2026
When you buy a resale home you pay Transfer Tax (ITP) to the Generalitat. Under Law 5/2025, the general rate fell from 10% to 9% for purchases from 1 June 2026. Homes worth more than €1 million still pay 11%.
If you are 35 or under and it is your first habitual home, the rate is 6% when the home is worth up to €180,000 and 8% above that. The reduced rate has income limits (sum of general and savings tax bases up to €30,000 individually or €47,000 jointly) and only applies to the share the young buyer acquires.
Example: on a €170,000 home, 9% is €15,300 and 6% is €10,200, a difference of €5,100.
The IVF guarantee: a mortgage of up to 100%
Banks usually lend 80% of the price. The Institut Valencià de Finances (IVF) can guarantee up to 20% more, so the mortgage can reach 100% of the price. In the 2026 call it is aimed at people aged 18 to 45, for a habitual home in the Valencia region of up to €311,000 (excluding taxes).
Other conditions reported: at least two years living in the region, not owning another home (with exceptions), and approval by a participating bank. The guarantee is free for the buyer. The 100% does not cover taxes, notary, registry or valuation.
The IRPF deduction for buyers under 35
If you are 35 or under, the Valencian income tax allows you to deduct 5% of the amounts you pay in the year for your first habitual home (interest excluded). It applies in full when your tax bases add up to less than €27,000 (individual) or €44,000 (joint), and gradually less up to €30,000 or €47,000.
Costs you still need to save for
Even with a 100% mortgage you need savings for the purchase costs: ITP (or VAT and stamp duty on a new build), notary, Land Registry, valuation and, if you use one, a gestor. A new-build purchase pays VAT instead of ITP, plus stamp duty (AJD).
Ask your bank and your notary for a written estimate before signing a reservation.
Step by step
- Check your age, residence and income against each aid.
- Get a mortgage pre-approval and ask whether the bank works with the IVF guarantee.
- Choose a home within the price limits that apply to you.
- Calculate taxes and costs before the reservation.
- Keep proof of every payment by bank transfer or card for the IRPF deduction.
What this means for you
If you are under 35 and buying your first home for up to €180,000, tax can be several thousand euros lower than for other buyers. If you have income but little savings, the IVF guarantee can close the gap with the bank. These aids are for residents buying their habitual home: for a second home or an investment the general rates apply.
Frequently asked questions
Do non-residents get these benefits? The IVF guarantee requires at least two years living in the Valencia region, and the under-35 rate and deduction are linked to your habitual home and Spanish income tax. A holiday home or investment pays the general rates.
Does the 100% mortgage include taxes and fees? No. The guarantee covers up to 20% of the price of the home. Taxes, notary, registry and valuation must be paid from your own savings.
Can two buyers share the purchase? Yes. The reduced ITP rate applies only to the share bought by the person who meets the conditions; the rest pays the general rate.
How buying a property in Spain works · Resale homes for sale · Selling to buy? Get a free valuation
Want to know how much you can finance? Our team offers a free mortgage viability check: maximum price, monthly payment and the aid that may apply to you. Contact us. You can also call us on 965 064 440 or send a WhatsApp to 601 868 660. We specialise in Alfaz del Pi, Albir, La Nucía, Altea, Benidorm and Finestrat, with an office in Albir.
General information. Check your own case with your bank, the IVF or a tax adviser before buying.
Sources: Law 5/2025 (RSM); Law 7/2023 and Generalitat figures (Última Hora, 21/09/2025); IVF guarantee (Última Hora 24/02/2026, El Español 28/05/2026, Valencia News 09/08/2026); Spanish Tax Agency, IRPF 2025 manual; Guiafiscal.es and TaxDown (consulted 04/11/2026).
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