Perini Finance & Property §34i GewO · Mortgages in Spain & Portugal
Region focus · Spain · §34i

Valencia & Costa Azahar — mortgage for non-residents

30–40% cheaper than Madrid, with solid gross rental yields. The third-strongest market for foreign buyers in Spain — and the fastest-growing.

How high is the transfer tax when buying property in Valencia?

In the city of Valencia and the surrounding province the ITP rate of the Valencian Community applies. 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 %, which most city apartments do not reach. Young buyers and certain groups qualify for reduced rates; for the foreign second home the standard 9 % rate applies. The ITP is the largest single item; around 10 to 12 % in total costs. Valencia is gaining demand as a liveable city with a beach and VLC airport. Important for financing: the bank lends against the lower of purchase price and tasación and finances the price, not the incidental costs — you cover the ITP from equity. As of 07/2026.

Market analysis

Valencia & Costa Azahar — a growth market

City of Valencia

Ruzafa, El Carmen, Eixample

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.

Costa Azahar

Oropesa, Peñíscola, Alcocéber

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.

Price comparison

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

5–6% gross typical

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.

Tax

ITP 10% Valencia region

Comunitat Valenciana ITP transfer tax 10% — the same as Catalonia, higher than Andalusia (7%). Wealth-tax allowance €500,000 per person. For larger assets, involve a tax adviser.

Access

Valencia airport (VLC)

Direct flights from Frankfurt, Munich, Berlin, Düsseldorf. The AVE high-speed train Madrid–Valencia in 1h50. Very well connected.

Example financings

Two example cases from Valencia

Concrete sample calculations for typical foreign buyers — as a guide for your own plan.

Valencia · Ruzafa

2-bedroom · €220,000

  • Equity€88,000 (40%)
  • Mortgage€132,000 (60%)
  • Purchase costs (~11%)~€28,600 (ITP 10%)
  • Loan-to-value60% LTV
  • Example payment (20 yrs, 3.1%)~€735/month
  • Bank typeCaixaBank · Valencia branch

Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.

Costa Azahar · Peñíscola

Seafront apartment · €175,000

  • Equity€52,500 (30%)
  • Mortgage€122,500 (70%)
  • Purchase costs (~11%)~€22,750
  • Loan-to-value70% LTV
  • Example payment (20 yrs, 3.1%)~€685/month
  • Bank typeBBVA · Castellón province

Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.

Mortgage calculator

Calculate your costs quickly

Pre-filled with typical values for this region — adjust and calculate.

Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.

FAQ

Frequently asked questions about Valencia & Costa Azahar

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 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. Selected to your strategy 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?
CaixaBank (headquartered in Valencia!), Banco Sabadell, BBVA, Santander, Bankinter. CaixaBank is particularly strong as a regional player. 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.
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Request a mortgage

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Related topics

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Region · Spain

Marbella & Málaga

Costa del Sol — ITP 7% Andalusia.

Learn more → Region · Spain

Costa Brava

Girona province, without Barcelona's rent cap.

Learn more → Costs

ITP comparison Spain

Purchase costs by region.

Learn more →
From practice

Case reports Costa de Valencia

Anonymised examples of how buyers financed their property in Costa de Valencia.

See all Costa de Valencia case reports →

Content by Siegfried Perini — local brand representative since 2019, active in real estate since 1992. Point of contact for German-speaking buyers in Spain and Portugal. Brokerage by Olga Nikushkina, mortgage credit intermediary under §34i German Trade Regulation (GewO), notified for Spain and Portugal via the German BAFA.

Last updated: July 19, 2026