How much wealth tax do you pay in the Comunidad Valenciana from 2025?
Since 1 June 2025, the wealth tax allowance in the
Comunidad Valenciana has doubled from €500,000 to
€1,000,000 per person.
For residents, there is an additional allowance of
€300,000 for the main home. 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, Dutch and English with a holiday home),
only the general allowance of €1,000,000 applies. The additional €300,000
allowance only applies to residents whose main home is in Spain.
Resident example (Alicante): apartment €400,000 + investments €700,000 = €1,100,000.
→ fully exempt (below €1,300,000 threshold).
Non-resident example (Torrevieja): holiday apartment €500,000.
→ fully exempt (below €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 both to residents and non-residents with Spanish property.
New from 1 June 2026: other relatives will also benefit from a tax reduction:
- 25% reduction from June 2026
- 50% reduction from June 2027
Example (Dénia, Costa Blanca North): an apartment worth €200,000 inherited by a brother.
Before 2025: tax ± €20,000. From 2026: ± €15,000. From 2027: ± €10,000.
Non-residents from other countries also benefit when inheriting or receiving
Spanish property in the Comunidad Valenciana.
Will buying a home in the Comunidad Valenciana become cheaper?
Yes. Since June 2025, property purchase costs have been reduced:
- Homes up to €1,000,000 → transfer tax reduced from 10% to 9%
- Homes above €1,000,000 → remains at 11%
- Stamp duty → reduced from 1.5% to 1.4%
This reduction applies to both residents and foreign buyers of a second home.
Example (Moraira, Costa Blanca North): purchase of a villa at €750,000.
Old situation: 10% = €75,000. New situation: 9% = €67,500.
Savings: €7,500 (excluding additional stamp duty reduction).
Whether it is an apartment in Torrevieja or a villa in Jávea,
property purchase costs are structurally lower from 2025.
Why are these rules interesting for expats, non-residents and investors?
With these reforms, the Comunidad Valenciana clearly aims for a more attractive tax climate.
This offers benefits for different groups:
- Expats who live in Spain benefit from higher allowances and lower inheritance and gift taxes.
- Non-residents (Belgians and Dutch with a second home) save thousands of euros on purchase costs and pay less inheritance tax.
- Investors improve their returns thanks to lower transaction costs and favourable tax rules.
How does the Comunidad Valenciana differ from other Spanish regions?
In Spain, taxation is largely determined regionally.
What applies in the Comunidad Valenciana does not automatically apply in Andalusia, Madrid or Catalonia.
For those considering emigrating 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 holiday home,
or want to transfer your assets efficiently to the next generation, the new law can provide
significant benefits.
Do you live in Valencia city, own an apartment in Alicante,
or are you considering a villa in Jávea, Moraira or Torrevieja?
Then this is the right time to see how you can make the most of the reforms.
Contact us for personal advice on purchase, relocation or succession planning.
Summary: three key points
- Wealth tax allowance: €1,000,000 for everyone; + €300,000 only for residents with main home.
- Lower inheritance and gift tax for extended family from 2026 and 2027.
- Lower property purchase costs in the Comunidad Valenciana.
Frequently Asked Questions (FAQ)
How much wealth tax do non-residents pay?
Non-residents (such as foreigners with a second home) are only taxed on their
Spanish assets. Thanks to the new rules, there is an allowance of
€1,000,000 per person. The extra €300,000 for the main home applies
only to residents.
How much wealth tax do residents pay?
Residents have the same allowance of €1,000,000, plus an additional
€300,000 for their main home. In total, €1,300,000 per person.
Does the 99% inheritance tax reduction for children and spouses remain?
Yes. The almost complete exemption remains in place for spouses and children.
This also applies to non-residents who inherit or bequeath Spanish property.
How much inheritance tax do siblings pay?
Until 2025, the normal rate applies. From 1 June 2026, siblings, uncles, aunts,
nephews and nieces receive a 25% reduction, increasing to 50% from June 2027.
This also applies to non-residents.
Will buying a house in Alicante or the Costa Blanca become cheaper?
Yes. From June 2025, transfer tax is reduced from 10% to 9% for homes up to €1,000,000.
An apartment of €300,000 in Alicante immediately saves more than €3,000.
Does this tax reduction also apply in Andalusia or Madrid?
No. Taxes differ per region. The reforms of Law 5/2025 apply only in the
Comunidad Valenciana.
Why do so many foreigners choose the Comunidad Valenciana?
Besides climate and quality of life, the favourable tax framework is key.
Lower purchase costs, higher allowances and reduced inheritance and gift taxes
make the region especially attractive for second homes and investments.