Sales/Purchase

I am looking to sell my home next year, but wish to purchase a smaller one. Having paid the extra 10% when i purchased this one, do i have to do the same on a new one even though i am staying here?

Capital Gains Tax payable on sale of property.
When purchasing a property, there is a 10% tax plus 1.5% on new builds (IVA -VAT)
Need to check position !!!

Thanks for the comments.

Which is why it is so expensive to move over here. We were going to do the same a few years ago but, with transfer tax, estate agent fees (now there's a rip off if ever you saw one), solicitors fees, utility connection and all the other things thrown in we would have paid out over 20K euro for what is effectively nothing.

Hence we stayed where we are and got a new kitchen and shower room instead. Much cheaper.

My thoughts exactly.

Does the tax not reduce once you've been a resident for 3 years or more?

Think this depends on whether you are resident or not!

Your age is also a factor - are you over or under 65?

over 65 and resident for 7 yrs.

It makes no difference on your age or residency for the ITP. You are getting it confused with the capital gains tax.
The transfer tax is payable on used properties and IVA on new properties (both 10% in Valencia region) with an added 1.5% on new properties.