Voted the best city 2024 in the world to live in by Forbes, Valencia continues to capture hearts. Praised for its exceptional quality of life, Mediterranean climate, and vibrant cultural scene, it attracts numerous expats, investors, and visitors every year.

In 2024, the city strengthens its appeal further by becoming the European Green Capital, highlighting its commitment to sustainability with extensive green spaces, bike lanes, and eco-friendly mobility solutions.

Valencia is not just an ideal place to live; it has also become a hub for digital nomads, entrepreneurs, and start-ups. With a cost of living 20-30% lower than in Barcelona or Madrid and a thriving ecosystem, the city boasts over 1,000 tech companies and hosts renowned incubators like Lanzadera and the Valencia Innovation Hub. In 2023, Valencia ranked among the top 10 cities worldwide for remote workers according to Nomad List.

This unique mix of quality of life, entrepreneurial dynamism, and ecological commitment is also boosting its real estate market, attracting a diverse range of profiles: investors seeking attractive returns, expats looking to settle in a modern, sustainable city, and heirs managing family assets in the region.

However, to make the most of the opportunities in this thriving market, it is essential to understand the local tax regulations and legal procedures related to acquiring or managing real estate.

Real estate taxation in Valencia: what you need to know based on your profile

1. If you are a no Spanish tax resident

  • Rental income: Taxed at 24% (non-EU) or 19% (EU).
  • Property sale: Capital gains taxed at 19% for EU residents and 24% for others.
  • Wealth tax: Applicable if net assets exceed €700,000 in Spain.

2. If you are a Spanish tax resident

  • Global income tax: All worldwide income is subject to progressive taxation.
  • Beckham Law: Under conditions, expats can beneficiate a flat rate of 24% on Spanish-source income for 6 years, with no taxation on foreign income.

3. If you inherit property

  • Exemption: Up to €100,000 for direct heirs in Valencia.
  • Tax rate: Progressive, between 7.65% and 34%, after applying exemptions.
  • Mandatory steps: Acceptance of inheritance before a notary, obtaining a NIE, and payment of the municipal Plusvalía tax on the increase in cadastral value.

The importance of legal support for your real estate projects

Whether you are a buyer, investor, or heir, the legal and fiscal aspects of a real estate project in Valencia can be complex. Hiring a specialised lawyer offers several advantages:

  • Legal and tax expertise: Ensuring secure transactions and tax optimisation tailored to your profile.
  • Ethics and professionalism: A lawyer acting as a real estate agent combines the expertise of a property professional with that of a jurist, ensuring a transparent and ethical service.
  • Personalised support: From negotiation to notarial registration, every step is carefully managed to protect your interests.

Valencia is not only an exceptional place to live but also a strategic destination for real estate projects. 

Estelle Desmaris, French attorney acreditaded in real estate transctions.