Chapter

ITP, the resale transfer tax in Spain

§ 1What ITP is

The initials stand for the tax on onerous property transfers. When you buy a home from an earlier owner, the sale is subject to this tax and not to VAT, as the tax agency explains. When you buy a first-hand home from a developer, VAT applies instead, together with stamp duty on the deed. The first case is the larger market for most foreign buyers. The wider budget is in the costs and taxes section.

§ 2Who sets the rate

The regions set the rate, and they also set the reductions. That is why the same price can lead to different amounts of tax in different parts of Spain, and why a figure quoted without a region is nearly meaningless. The rate that applies is the one of the region where the home stands, whatever your nationality or residence. The conditions for reductions, which may depend on your age, family and the use of the home, are also those of that region.

§ 3The tax base

The tax is calculated on the base, and the base is the higher of the official reference value and the price paid, under the 2021 anti-fraud law. In 2026 the Constitutional Court judgment 13/2026 upheld the reference value mechanism. For a buyer the result is simple: a low price on the contract does not lower the tax if the reference value is higher. Ask your adviser what the reference value of the home is before you agree a price.

§ 4When it is paid

The tax is paid after signing. The deadline is set by the region, and your lawyer or gestor normally files the return. Registration of your ownership depends on the tax being dealt with, so hold the money ready. The cost of the purchase as a whole, with the fees and the set-up costs, is explained in the extra costs of buying.

§ 5Rates we have verified

The general rate is 6% in Madrid, 7% in Andalusia, 9% in the Valencian Community, 7.75% in Murcia, 8% in Galicia and 9% in Castilla-La Mancha. The detail of the two largest markets is in ITP in Madrid and ITP in Andalusia, where Madrid's announced proposal is recorded as a proposal only.

The east coast and the south-east are covered in ITP in the Valencian Community and ITP in Murcia, which also set out the reduced rates for young buyers and families.

The north-west and the interior are covered in ITP in Galicia and ITP in Castilla-La Mancha.

§ 6Regions with scales

Two regions tax housing on a scale, and the tax depends on the value of the home. They are set out in ITP in Catalonia and ITP in the Balearic Islands. A scale needs a calculation on your own figures, and the pages say what we have verified and what we have not.

§ 7The foral regions

The Basque provinces and Navarre set their own taxes. We have verified Gipuzkoa only, and ITP in the Basque Country and Navarre says plainly what is missing, so that no one budgets from a number we could not source.

§ 8Comparing and reducing

To see the regions side by side, read ITP by region. To see whether you might pay less, read reduced ITP rates, which collects the reductions we have verified and the conditions each region attaches to them.

§ 9New homes

ITP applies to resale homes only. A new home bought from a developer carries VAT and stamp duty on the deed, which are set out in the taxes on a new-build home. If you have not yet decided between a new home and a resale, compare the whole tax on each before you choose, since the two taxes differ in kind and in rate.

§ 10A last word on method

Treat any rate as a starting point. Ask your adviser to confirm the rate, the base and the deadline for your own deed, in writing, and to name the source. The cost of that confirmation is small, and it turns an estimate into a number you can budget with.

§ 11Common mistakes with ITP

Four mistakes recur. The first is budgeting from a rate quoted for the wrong region, since websites often show a national average that does not exist. The second is assuming that a reduction applies without checking every condition. The third is ignoring the reference value and discovering at the filing that the base is higher than the price. The fourth is spending the tax money before the deadline and finding that registration is held up. Each is avoided by a short written confirmation from your adviser before you reserve.

§ 12How this chapter is kept up to date

Rates and reductions are rechecked against the official source of each region, and the date of the last check appears on every page. When a region announces a change, the page records it as a proposal until it becomes law, and the updates page logs the date and the source. If you see a rate that differs from the one here, tell us through the contact page.

One habit helps whichever route you choose: ask for the tax to be named, rated and based in writing before you reserve. A seller who cannot say which tax applies has told you something about the sale.

§ 13Why the other costs matter here

The transfer tax is the largest single item, but it is not the only one. The fees paid to professionals, the tax a seller meets on the rise in land value and the bills that repeat every year all affect whether a resale home is affordable. Looking at them together stops the rate from distorting the comparison, because a region with a low rate can still be dear to buy in once the fees and the yearly bills are added. Treat the rate as one input to a total, not as the answer.

§ 14Other taxes and costs that follow a purchase

The tax a seller pays on the rise in land value is described in the municipal tax on the rise in land value, and the fees of the professionals who work on the deed are explained in the fees on top of the transfer tax.

Once the purchase is complete, the bills that come every year are described in the annual taxes that follow the purchase.

§ 15A note on comparing regions

It is tempting to read a table of rates and to rank the regions. The rate is only one part of the cost, and the base can differ from the price, as the reference value shows. Reductions for age, family or a main home depend on conditions that vary between regions, and some change from year to year. Use the table to build a shortlist and then ask for a calculation for your own purchase, based on the price, the type of home and your own situation, written and dated.

§ 16Taxes for non-residents, sellers and heirs

The yearly taxes of an owner who lives abroad are described in more on non-resident taxes, and the tax on the profit of a sale is described in more on capital gains tax on a sale.

The tax on inheritances and gifts is described in more on inheritance and gift tax.

Tax note. Rates depend on the region, the type of property and the buyer, and they change. Figures here are dated and sourced; examples are illustrative and show their assumptions. Confirm yours with the regional tax agency or a tax adviser.