Important Tax Updates in Comunidad Valenciana (Spain) for 2025, 2026, and 2027
Law 5/2025, of May 30, 2025, of fiscal, administrative, financial, and organizational measures of the Generalitat Valenciana introduces important tax reforms effective between 2025 and 2027 in the Valencian Community. The key changes by tax type are structured as follows:
Wealth Tax (Impuesto sobre el Patrimonio)
The exempt minimum doubles from €500,000 to €1,000,000.
Effective for tax events accrued as of December 31, 2025.
Applies to both residents and non-residents with property in the region.
Inheritance and Gift Tax (Impuesto sobre Sucesiones y Donaciones)
For acquisitions by collateral relatives of the third degree (siblings, uncles/aunts, nephews/nieces):
25% bonification on the tax quota from June 1, 2026.
50% bonification from June 1, 2027.
Property Transfer Tax and Stamp Duty (Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos Documentados, ITPAJD)
General transfer tax rate for property sales reduces from 10% to 9%, effective June 1, 2026.
A new reduced 4% rate applies to acquisitions of non-urbanizable rural plots intended for agricultural use by professional farmers registered in RETA, with a maintenance obligation of agricultural activity for five years.
Stamp Duty general rate reduces from 1.5% to 1.4%, effective June 1, 2026.
A 50% bonification on Stamp Duty applies to notarial deeds linked to certain approved strategic investment projects declared as "proyecto de interés autonómico," effective June 1, 2025.
Other Fiscal Measures
Enhancements in personal income tax (IRPF) benefits related to natality, adoption, and family fostering.
Updates in certain public service fees and taxes for sectors like health and forestry products.
These reforms mark a notable easing of regional tax burdens and aim to promote investment, familial wealth transmission, and agricultural activity in the Valencian Community
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