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 Valencia buyers arrange today typically closes faster than in the capital, and mortgage financing Valencia banks offer draws on a deeper pool of lenders used to non-resident files.
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.
Up to 70% loan-to-value, term up to 25 years — several major Spanish banks are active in the region.
No — it applies only in areas declared strained; the Comunitat Valenciana has not done so as of 2026. Rents are freely negotiable.
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.
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.
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 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.
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.
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.
Direct flights from Frankfurt, Munich, Berlin, Düsseldorf. The AVE high-speed train Madrid–Valencia in 1h50. Very well connected.
Concrete sample calculations for typical foreign buyers — as a guide for your own plan.
| 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, 3.1%) | ~€735/month |
| Bank type | Major Spanish bank · Valencia branch |
Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.
| Item | Amount |
|---|---|
| Equity | €52,500 (30%) |
| Mortgage | €122,500 (70%) |
| Purchase costs (~10%) | ~€17,500 |
| Loan-to-value | 70% LTV |
| Example payment (20 yrs, 3.1%) | ~€685/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.
Pre-filled with typical values for this region — adjust and calculate.
Guide value without guarantee. Spain: max. 70%, Portugal: max. 80% loan-to-value for non-residents. Purchase costs = ITP/IMT + notary + land registry + lawyer + NIE/NIF. Total outlay = equity + purchase costs + all payments over the term. For a binding offer, contact us.
Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.
The complete breakdown with your exact figures — loan, equity required, total interest — straight to your inbox.
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.
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. This is not tax advice; Inheritance tax, groups I and II (parents, children, spouses). Autonomous tax law changes; review quarterly.
Planning a purchase in Valencia? A free initial consultation in English — also German, French, Dutch, Spanish, Russian. I review your situation and find the right bank in Spain.
Monthly instalment, total cost and equity requirement for your exact figures.
Anonymised examples of how buyers financed their property on the Costa de Valencia.