2-bedroom · €220,000
| Item | Amount |
|---|---|
| Equity | €88,000 (40%) |
| Mortgage | €132,000 (60%) |
| Purchase costs (~10%) | ~€22,000 (ITP 9%) |
| Loan-to-value | 60% LTV |
| Example payment (20 yrs, 2.4%) | ~€695/month |
| Bank type | Major Spanish bank · Valencia branch |
Region focus · Spain · §34i
Valencia property for sale: transfer tax for non-residents buying with a mortgage
30–40% cheaper than Madrid, with solid gross rental yields. The third-strongest market for foreign buyers in Spain — and one of the fastest-growing. A mortgage for a purchase in Valencia typically closes faster than in the capital, and mortgage financing in Valencia draws on a deeper pool of lenders used to non-resident files.
How high is the transfer tax on Valencia property?
The transfer tax on Valencia purchases is the ITP rate of the Valencian Community: since 1 June 2026 (Law 5/2025) the general rate is 9% of the higher of purchase price and cadastral reference, one percentage point below the previous 10%. Only above €1m does it rise to 11%. Total costs come to around 10 to 12%.
Not every bank lends against income in a foreign currency — we approach the ones that do. For the full evaluation, enter your income converted into euros.
Your estimate
- Monthly payment(calculation rate—)—
- Loan amount—
- Loan-to-value (LTV)—
- Purchase costs—
Our brokerage focus starts at a loan amount of around €300,000 — we arrange smaller loans too and will give you an honest read on whether it makes sense in your case.
Estimate, no guarantee. The interest rate is the calculation basis for this example, not a market rate or commitment — the rate you actually achieve depends on your credit profile, the property and the bank. Spain: max. 70 % LTV for non-residents. Purchase costs by region as on our purchase-costs page; the other items are guide values.
Valencia property for sale: at what price does ITP rise above the standard 9%?
On Valencia property for sale, non-residents pay the standard 9% ITP, rising to 11% above €1m.
- Cheaper than Madrid, one of the fastest-growing markets: Largely 30–40% cheaper than Madrid at a comparable quality of life, generally better rental yields — the third-largest and one of the fastest-growing foreign-buyer markets in Spain.
- How much will a Spanish bank lend? Up to 70% loan-to-value, term up to 25 years — several major Spanish banks are active in the region. The Spanish banks.
- No rent cap in the Comunitat Valenciana as of 2026: The rent cap applies only in areas declared strained; the Comunitat Valenciana has not done so as of 2026. Rents are freely negotiable.
Only above €1m does the rate rise to 11 %, which does not affect most city apartments. Reduced rates exist for young buyers and certain groups; a foreign buyer’s second home pays the standard rate of 9 %.
ITP is the largest single cost item; purchase costs total around 10 to 12 % overall. Valencia is attracting growing demand as a liveable major city with a beach and VLC airport.
Important for the financing: the bank lends against the lower of purchase price and tasación and finances the price, not the purchase costs — you pay the ITP from equity. As at 07/2026.
Buying a house in Valencia: three financings a high-street branch cannot provide: Spanish banks only pay out on a new build at the completion/sign-off of the building, they finance purchases, not equity release, and they are unable to value a German property. Of the 30+ institutions on the market, one finances the developer instalments during construction and two lend against unencumbered existing property (Perini Market Check, as at 8 October 2026).
Valencia & Costa Azahar: why is it a growth market?
Valencia is 30–40% cheaper than Madrid, with a typical gross rental yield of 5–6%. The Costa Azahar north of Valencia is cheaper than the Costa Blanca.
- Ruzafa, El Carmen, Eixample in the city of Valencia: Ruzafa — a trendy, young quarter. El Carmen — the historic old town. Eixample — genteel and elegant, Modernisme architecture. Ciudad de las Artes — premium new builds in the City of Arts zone.
- Oropesa, Peñíscola, Alcocéber on the Costa Azahar: The “orange-blossom coast” — north of Valencia. Oropesa del Mar, Peñíscola (a castle town by the sea), Alcocéber, Vinaròs. Cheaper than the Costa Blanca, more authentic. A growing German market.
- 30–40% cheaper than Madrid: Price per square metre in the city of Valencia: €2,500–4,500 in top locations. Madrid comparison: €4,500–7,000. Costa Azahar: €1,500–3,000. That means better gross yields and less market risk.
- Rental yield, typically 5–6% gross: Valencia has one of the best rental yields of all major Spanish cities. Students of the Universidad de Valencia complement the classic residential market. Unlike Barcelona, the rent cap does not apply. Source: Investropa Valencia Rental Yields Report 2026, cross-checked against BestYieldFinder Valencia data. As at 03.08.2026 — market data changes; figures reviewed periodically.
- ITP 9% in the Valencia region: Comunitat Valenciana ITP transfer tax 9% — 11% above €1m of taxable value. Lower than Catalonia (10%), higher than Andalusia (7%). Wealth-tax allowance €500,000 per person. For larger assets, involve a tax adviser.
- Valencia airport (VLC): Direct flights from Frankfurt, Munich, Berlin, Düsseldorf. The AVE high-speed train Madrid–Valencia in 1h50. Very well connected.
How do you calculate your costs quickly?
Pre-filled with typical values for this region — simply adjust the figures and the calculation updates immediately; the region and tax rate are already set. In addition to the actual purchase price, there are significant purchase costs involved in buying property in this region.
The largest component of this is the property transfer tax in Valencia (Impuesto sobre Transmisiones Patrimoniales, ITP): This is set by the Comunitat Valenciana itself and stands at 9 %; for a taxable value of €1 million or more, the rate is 11 %. It applies to existing properties and must be paid in full from equity — it is not co-financed.
Full analysis by email: Everything that the calculator on the page does not show: equity requirement including purchase costs, all purchase costs listed individually, total interest and total costs — and, based on your income, how much you can afford under the 35 % rule. We work with 15–20 out of over 30 banks and will make enquiries with at least 2 of them regarding your situation; we’ll discuss which ones are suitable during our conversation.
What do two example cases from Valencia show?
Concrete sample calculations for typical foreign buyers — as a guide for your own plan.
Case studies from the Costa de Valencia: how have buyers financed their property?
Anonymised examples of how German-speaking buyers have financed their property on the Costa de Valencia.
Valencia: tax is based on the price, but financing is not: In the Comunitat Valenciana, the ITP has been levied on a sliding scale based on the purchase price since Ley 5/2025. What is important for planning purposes is not so much the rate itself as its position: the property transfer tax is not part of the financing.
The bank provides a loan up to a percentage of the lower of the purchase price and the valuation, and everything beyond that — tax, notary, Registro, tasación, legal representation — comes from cash funds.
Anyone buying an existing apartment in Valencia and relying on the advertised loan-to-value ratio regularly underestimates the amount of equity required by a double-digit percentage of the purchase price.
Marbella & Málaga (Region · Spain): Costa del Sol — ITP 7 % Andalusia.
Costa Brava (Region · Spain): Province of Girona, without the Barcelona rent cap.
What is in the full evaluation by email?
Everything the calculator does not show on the page: equity needed including purchase costs, every cost item, total interest and total cost — and, with your income, how much you can afford under the 35 % rule.
We approach at least 2 of the 15–20 banks we work with for your case (31 in Spain, 14 in Portugal); which ones fit, we discuss in person.
How can you use a property in Valencia as a source of capital?
The city of Valencia and its surroundings belong to the Comunitat Valenciana and fall under the same rules as the Costa Blanca. A paid-off property in Valencia does not have to be sold to free up capital — it can be mortgaged instead.
Inheritance tax, Comunitat Valenciana: 99% relief, since 28.05.2023 (retroactively) — groups I and II, meaning parents, children and spouses (art. 12 bis Ley 13/1997, as amended by Ley 6/2023 of 22.11.2023).
For inheritance, the rules of the autonomous community holding the highest value of the Spanish estate apply. With a single Spanish property that is simply its region. The relief must be claimed within the filing deadline — miss it and it becomes contentious.
How far a Spanish bank will go on an unencumbered property, what changes with the owner's age, and what the released money may be used for is set out in full under releasing capital from a Spanish property.
A gift of the released money to a child is taxed in Germany, not in Spain — see inheritance and gift tax in Spain. Inheritance tax, groups I and II (parents, children, spouses). Regional tax law changes regularly.
What was actually paid in this area. Portal prices are what sellers ask. What was recorded at the notary is published by the Spanish notaries themselves: the Portal Estadístico del Notariado — free, no registration, and searchable down to postcode level.
In the first quarter of 2026 the prices paid ran 29 per cent below asking prices, the widest gap since 2007. For a mortgage that is the figure that counts: the bank's valuer works from completed sales, not from listings. → Portal Estadístico del Notariado · What that means for your financing · Where the numbers come from
Costa Brava — mortgage for non-residents (Region): Financing in the region.
Marbella & Málaga — mortgage Costa del Sol: Financing in the region.
Seafront apartment · €175,000
| Item | Amount |
|---|---|
| Equity | €52,500 (30%) |
| Mortgage | €122,500 (70%) |
| Purchase costs (~10%) | ~€17,500 |
| Loan-to-value | 70% LTV |
| Example payment (20 yrs, 2.4%) | ~€645/month |
| Bank type | Major Spanish bank · Castellón province |
Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.
Frequently asked questions
How does mortgage financing in Valencia work for foreign buyers?
The same national framework applies as elsewhere in Spain: up to 70% loan-to-value for non-residents, based on the lower of purchase price or the bank's own valuation. Several major Spanish banks are active in the region — terms of up to 25 years.
Why is Valencia so attractive?
Largely 30–40% cheaper than Madrid with a comparable quality of life. Generally better rental yields than Madrid. The third-largest market for foreign buyers in Spain — and one of the fastest-growing.
Which districts are best in Valencia?
Ruzafa for hipsters and young professionals. El Carmen for culture and tourism (AL licence). Eixample for classic and genteel. Ciudad de las Artes for premium new builds. Which district suits your strategy is clarified in the initial consultation.
Does the rent cap also apply in Valencia?
No — the Ley de Vivienda 2023 with its rent cap applies only in areas that the regional government explicitly declares strained. The Comunitat Valenciana has not done so to date (as of 2026). Rents are freely negotiable.
Which banks finance in Valencia?
We approach at least 2 of 15–20 institutions per case; several major Spanish banks are active in the region. Which one fits your case is settled in conversation. Terms as elsewhere in Spain: 70% LTV, up to 25-year term.
Is the Costa Azahar worth it as an alternative to the Costa Blanca?
For those seeking quiet, authentic coastal towns: yes. The Costa Azahar (Oropesa, Peñíscola, Alcocéber) is 20–30% cheaper than the Costa Blanca, with growing German–Spanish communities. For British-international tourism: rather the Costa Blanca.
Are there international schools in Valencia?
Yes. Valencia has a number of international schools with English, German and other curricula, mainly in the city and its northern suburbs. For non-resident buyers with children, school proximity often influences the choice between city districts and the coastal municipalities of the Valencian Community.
Request a mortgage
Planning a purchase in Valencia? A free initial consultation in English — also German, French, Spanish, Russian. We review your situation and find the right bank in Spain.
This is not tax advice.
Related pages
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Mortgage calculator
Monthly payment, loan and purchase costs by region straight away; total cost and equity needed by email.
Region
Málaga City — Mortgages for non-residents
Its own page, the same tax framework, a different market.
Content by Siegfried Perini — local brand representative since 2019, active in real estate since 1992, entered in the German intermediary register (§ 11a GewO) as a person directly involved in brokerage and advice. Point of contact for German-speaking buyers in Spain and Portugal. Brokerage by Olga Nikushkina, mortgage credit intermediary under § 34i German Trade Regulation (GewO); in Portugal through a locally licensed intermediary.