Taxation for Property Owners in the Valencian Community
Inheritance, capital gains tax & the taxman: what's changing in 2026 for your Costa Blanca property
September is a good time to check the fine print behind your property in Dénia, Jávea or anywhere across the Marina Alta. Several tax changes have landed this year that directly affect anyone buying, selling, renting out or inheriting property here, and they are worth knowing before you act, not after.
Municipal capital gains tax: the hike that never took effect
Back in December 2025, the Spanish government approved a Royal Decree-Law updating the coefficients for the municipal capital gains tax, known as plusvalía municipal, with increases of up to 40% in some brackets. Congress rejected the decree on 27 January 2026, so it never came into force, and the 2024 coefficients remain in place. If you sold, inherited or gifted a property between 23 December 2025 and 27 January 2026 and paid under the new, higher coefficients, it is worth checking with your town hall whether you are entitled to a refund of the difference.
Income tax for non-resident owners
If you are not a Spanish tax resident, how your property here is taxed still depends on where you live. EU and EEA residents pay 19% both on capital gains from a sale and on rental income, and can deduct related expenses such as community fees, IBI, maintenance and mortgage interest. Non-EU residents pay 24% and, for now, cannot deduct expenses, although a July 2025 court ruling has challenged this difference in treatment and the Supreme Court is expected to rule on it. On top of that, if your property sits empty for part of the year, the tax office imputes a notional rental income of 1.1% or 2% of the cadastral value, taxed at the same rate. These details are often what separates a genuinely profitable investment from one full of surprises.
Inheritance and gift tax: good news for families
In the Comunidad Valenciana, spouses, parents and children have enjoyed a 99% rebate on inheritance tax since 2023, which in practice reduces many family inheritances to zero. The 2026 news is that this rebate now extends, for the first time, to siblings, aunts, uncles, nieces and nephews, the so-called Group III: a 25% rebate from June 2026, rising to 50% in 2027. If you are planning to leave your Marina Alta property to a sibling, a niece or a nephew, this change could meaningfully lower their tax bill.
Why this matters for your property
We are not tax advisors, but part of our 360º Diagnosis is precisely about spotting these issues before they become a problem: we review your tax residency situation and your property's cadastral value, and connect you with the right professionals so that buying, selling or passing on your property happens as part of a real strategy, not just a listing.
Want to know how these changes affect you specifically? Get in touch or book your 360º Diagnosis and we will go through it together, at your own pace and in your own language.
Leticia Castellote
Blue Med Services
+34 636 168 306
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