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From 2026, several new laws will come into force in Spain, and specifically in the Valencian Community, which will affect the lives of many residents – whether they are property owners, entrepreneurs or motorists. Here are the key points – and what they mean in everyday life.
Property purchases – tax relief from June 2026
Anyone purchasing property in the Valencian Community will pay less tax from 1 June 2026.
▶ The property transfer tax (Impuesto sobre Transmisiones Patrimoniales, ITP) will decrease from 10% to 9%. Only for properties with a purchase price of over €1 million will the rate remain at 11%.
▶ The stamp duty (Actos Jurídicos Documentados, AJD) will also be reduced from 1.51% to 1.41% at the same time.
This results in a noticeable difference for buyers:
▶ With a purchase price of €600,000, you save around €6,000 in taxes.
▶ At €1.2 million, however, the higher rate of 11% applies again.
▶ In addition, certain buyer groups, such as professionally registered farmers (RETA), benefit from a reduced rate of 4% for agricultural land that cannot be built on.
▶ Furthermore, for projects classified by the regional government as being „of particular autonomous interest,“ the AJD is even halved.
Conclusion: Anyone planning to purchase property in 2026 should, if possible, schedule the notary appointment after 1 June 2026 in order to automatically qualify for the new, lower tax rate.
Inheritance and gifts – advantages for siblings and nieces
The Valencian Community will also become more family-friendly in terms of inheritance and gift tax (Impuesto sobre Sucesiones y Donaciones, ISD) from 2026 onwards.
▶ In addition to the long-standing 99% reduction for close family members (parents, children, spouses), from 1 June 2026, siblings, uncles, aunts, nieces and nephews (Group III) will also receive a tax reduction of 25% for the first time.
▶ From 1 June 2027, this bonus will increase to 50%.
ExampleIf a property with a taxable value of €300,000 is transferred to a niece, the tax burden will be reduced by 25% in 2026 and by as much as half from 2027 onwards.
consequenceThose who wish to transfer assets within their extended family can save significantly on taxes by timing the transfer carefully – for example, by making a gift or opening a will after 1 June 2026.
Wealth tax – higher allowance
The allowance for wealth tax (Impuesto sobre el Patrimonio, IP) will also be increased.
▶ From the 2025 tax year (2026 tax return) onwards, an allowance of €1 million per person will apply in the Valencian Community.
This means that many residents with average real estate or capital assets will no longer be liable for tax in future.
The change affects both Spanish tax residents and EU citizens with their main residence in the region.
Entrepreneurs & self-employed persons – Digital invoices become mandatory
From 1 January 2026, electronic invoicing (VERI*FACTU) will become mandatory in Spain.
▶ Initially for corporations, and from 1 July 2026 also for self-employed persons (autónomos).
▶ All invoices must be created digitally, provided with a QR code and archived in an unalterable format.
The aim is greater transparency – but for many small business owners, this means new software, new processes and training.
The actual B2B e-invoicing obligation is expected to come into force in 2027, meaning that the transition will take place over two years.
Traffic – New warning light from 2026
From 1 January 2026, a simple but important change will come into effect on Spain's roads:
▶ The classic warning triangle is being abolished. Instead, every vehicle must be equipped with a V-16 warning light, which automatically sends the location to the DGT 3.0 traffic control centre in the event of a breakdown.
▶ Only certified, „connected“ models are permitted. Missing or incorrect devices may result in fines.
Travel – ETIAS to launch later than planned
The introduction of the new EU entry system ETIAS has been delayed.
▶ Originally, the electronic travel authorisation was supposed to come into effect in 2025 – now the EU has postponed the launch until the last quarter of 2026.
▶ The system affects citizens from visa-free countries, including the United Kingdom, the United States and Canada.
▶ In future, you will need to apply online for a permit before entering the Schengen area. The permit is valid for three years and costs around seven euros.
▶ Nothing will change for EU citizens, but British residents in Spain should keep an eye on the postponement and register in good time as soon as the system is active.
Outlook – Small changes, big impact
2026 will not bring about a tax revolution, but it will bring many practical changes with significant consequences.
▶ Property buyers can save thousands of pounds by choosing the right time to buy.
▶ Families benefit from new tax breaks on inheritances and gifts.
▶ Self-employed persons should update their accounting software in good time.
▶ And those travelling by car will no longer need warning triangles in future – but they will need a bright connection to the DGT.
Anyone living, investing or doing business in Spain should pay close attention to the upcoming changes. Some of the new regulations – particularly in tax and property law – are complex and may have different effects depending on individual circumstances.
In many cases, it is therefore advisable to seek timely advice from tax experts or gestorías in order to make the most of the new opportunities.
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