Several autonomous communities in Spain have introduced tax reductions in 2026 to make home purchases more accessible. These measures mainly affect Property Transfer Tax (ITP), which applies to the purchase of second-hand homes.
At the same time, a number of municipalities have confirmed reductions or discounts on Property Tax (IBI), helping to lower the ongoing cost of owning a property this year.
Spanish autonomous communities lowering ITP for home purchases in 2026
These are the regions that will introduce reductions in Property Transfer Tax (ITP) – a levy that applies to all purchases of second-hand homes:
- Cantabria will apply a reduced ITP rate of 7% – instead of 9% – on the purchase of a primary residence valued at up to €300,000. Buyers could save up to €5,000 on the transaction.
- Galicia has approved a reduced ITP rate of 3% for single-parent families purchasing their main residence. The rate will fall to 0% if the property is located in a sparsely populated area. In addition, the maximum property value eligible for this rate has been increased to €240,000, rising by €30,000 for each additional family member.
- In the Valencian Community, ITP will fall from 10% to 9% from 1 June 2026. The reduced 6% rate for buyers under 35 and vulnerable groups will remain in place. As a result, someone purchasing a property for €250,000 could save up to €2,500.
- In La Rioja, a one-point reduction in ITP – from 5% to 4% – came into force on 3 March 2025 to help younger buyers access the housing market. The age limit for eligibility has also been raised from 36 to 40.
Municipalities lowering IBI in 2026
Alongside the regional reductions in Property Transfer Tax (ITP), numerous municipalities have decided to ease the burden of Property Tax (IBI) in 2026. As this is a municipal tax, each town or city can adjust the rate or introduce specific discounts.
Cities such as Madrid, Valencia and Alicante have already confirmed reductions in property tax bills for the next fiscal year:
- In Madrid, the general rate will fall from 0.428% to 0.414% in 2026.
- In Valencia, the 20% reduction in the general urban IBI rate will remain in place in 2026, along with enhanced discounts for large families that can reach 60% or even 90%.
- Alicante will apply a 1.20% reduction in IBI for homes and commercial premises in 2026.
- Castellón will introduce a further 2% cut in 2026 – bringing the accumulated reduction to 8% over three years.
- In Logroño, the rate will fall from 0.575 to 0.570 in the next fiscal year.
- El Prat de Llobregat is considering a 2% reduction for both homes and businesses.
- Vila-real has approved a 3% reduction for 2026.
- Benicàssim will lower the rate from 0.60% to 0.58% – an adjustment of roughly 3.4%.
- Pinto will apply a 5.5% reduction to the IBI bill in 2026.
- Torrelodones will reduce the rate from 0.49% to 0.45%.
- Lleida (La Paeria) has announced a general reduction of 2% by 2026.
- Banyeres de Mariola has set new tax rates – 0.78% for urban properties, 0.75% for rural properties and 0.60% for properties with special characteristics.
- In Castilblanco de los Arroyos, property tax bills will fall by between 10% and 50%, depending on the characteristics of the property and the size of the household.
Find out more about all of the costs of buying property in Spain in 2026 with our guide.
