*Researched and regularly updated to reflect current data.*

Property transfer tax (ITP - Impuesto de Transmisiones Patrimoniales) is the largest single buying cost when purchasing a resale property in Spain. It's paid by the buyer, and the rate depends entirely on which region the property is in. Rates range from 6% in Madrid to 13% in parts of the Balearic Islands - a difference that can add or subtract tens of thousands of euros from your total buying costs.

On a 500,000 euro property, ITP in Madrid costs 30,000 euros. The same property in Valencia costs 50,000 euros. In the Balearic Islands, depending on the price bracket, it could exceed 55,000 euros. These differences are significant enough to factor into your decision about where to buy.

This guide covers ITP rates for all 17 Comunidades Autonomas, explains when ITP applies versus IVA, and covers the reduced rates that may be available depending on your circumstances.

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At a glance

• ITP applies to resale property purchases only (new builds pay IVA + AJD instead)

• Rates are set by each Comunidad Autonoma and range from 6% to 13%

• Madrid has the lowest standard rate at 6%; the Balearic Islands have the highest at up to 13%

• ITP is calculated on the purchase price or the property's fiscal reference value, whichever is higher

• Reduced rates may apply for first-time buyers, young buyers, buyers with disabilities, and large families

• ITP must be paid within 30 days of signing the purchase deed

• Your lawyer or gestor typically handles the filing and payment

What is ITP and when does it apply?

ITP is the tax paid on the transfer of ownership of a second-hand (resale) property. Every time a previously owned property changes hands, the buyer pays ITP to the regional government of the Comunidad Autonoma where the property is located.

ITP only applies to resale properties. If you're buying a new-build property directly from a developer (first transfer), you pay IVA (VAT) at 10% plus stamp duty (AJD) instead. The Canary Islands are an exception - they charge IGIC at 7% instead of IVA.

The tax is calculated on whichever is higher: the agreed purchase price or the property's valor de referencia (fiscal reference value) set by the Catastro (Spain's land registry and valuation body). In most cases, the purchase price is higher than the reference value, so ITP is calculated on what you actually pay. If the reference value exceeds the purchase price - which can happen with below-market purchases - the tax authority will use the reference value and may require additional payment.

ITP rates by region: the complete table

Detailed breakdown for popular international buyer regions

Andalucia: 7%

Andalucia applies a flat 7% ITP rate on all resale property purchases. This makes it one of the more affordable regions in tax terms, which is one factor behind the Costa del Sol's popularity with international buyers.

Reduced rates apply in limited circumstances: 3.5% for purchases of officially designated social housing (vivienda de proteccion oficial / VPO), and reduced rates for buyers with disabilities exceeding 33%.

Worked example: A 600,000 euro villa in Marbella incurs ITP of 42,000 euros.

Catalonia: 10% (11% above 1,000,000 euros)

Catalonia has one of the highest ITP rates in Spain. A flat 10% applies to the first 1,000,000 euros of the purchase price, with an 11% rate on any amount above that threshold. For high-value Barcelona properties, this creates a meaningful additional cost.

Reduced rates of 5% may apply for buyers aged 32 or under purchasing their first primary residence below certain price thresholds, and for large families.

Worked example: A 1,200,000 euro apartment in Barcelona's Eixample district incurs ITP of 100,000 euros on the first million (10%) plus 22,000 euros on the remaining 200,000 (11%), totalling 122,000 euros.

Valencia: 10%

Valencia applies a flat 10% rate - one of the highest in Spain, and a notable cost factor for buyers attracted by the region's lower property prices. The high ITP rate partially offsets the price advantage compared to other regions.

A reduced rate of 8% may be available for first-home purchases below certain price thresholds for younger buyers.

Worked example: A 350,000 euro apartment in Valencia city incurs ITP of 35,000 euros. A comparable property in Andalucia would cost 24,500 euros in ITP - a difference of 10,500 euros.

Balearic Islands: 8-13% sliding scale

The Balearic Islands use a progressive sliding scale, with higher rates applying to higher price brackets. This makes it the most expensive region in Spain for property transfer tax on premium properties.

The rates are marginal, meaning each bracket rate applies only to the portion within that bracket (similar to income tax brackets).

Worked example: A 900,000 euro property in Mallorca:

• First 400,000 at 8% = 32,000

• Next 200,000 (400,001-600,000) at 9% = 18,000

• Remaining 300,000 (600,001-900,000) at 10% = 30,000

• Total ITP: 80,000 euros (effective rate: 8.9%)

A 1,500,000 euro property:

• First 400,000 at 8% = 32,000

• 400,001-600,000 at 9% = 18,000

• 600,001-1,000,000 at 10% = 40,000

• 1,000,001-1,500,000 at 12% = 60,000

• Total ITP: 150,000 euros (effective rate: 10.0%)

Madrid: 6%

Madrid has the lowest standard ITP rate in Spain at 6%, making it the most tax-efficient region for property purchases purely in transfer tax terms. This is one reason Madrid attracts investment buyers despite higher property prices per square metre.

A reduced rate of 4% applies to purchases of officially designated social housing.

Worked example: A 500,000 euro apartment in Madrid incurs ITP of 30,000 euros - compared to 50,000 in Valencia or 35,000 in Andalucia.

Canary Islands: 6.5%

The Canary Islands apply a 6.5% ITP rate on resale properties. The islands also have a unique tax structure: new-build properties attract IGIC (Impuesto General Indirecto Canario) at 7% instead of the mainland's 10% IVA, making new builds slightly cheaper in the Canaries.

Worked example: A 400,000 euro apartment in Tenerife incurs ITP of 26,000 euros.

New builds: IVA + AJD instead of ITP

When buying a new-build property directly from the developer (first transfer of ownership), ITP does not apply. Instead, you pay:

IVA (VAT): 10% of the purchase price nationally. In the Canary Islands, IGIC at 7% applies instead.

AJD (stamp duty / Actos Juridicos Documentados): A percentage of the purchase price paid on the notarised deed. AJD rates vary by region:

Combined new-build tax burden: IVA (10%) + AJD (0.5-1.5%) = approximately 10.5-11.5% in most regions. This is higher than ITP in low-rate regions like Madrid (6%) and Navarra (6%), comparable to regions at 10%, and lower than the top brackets in the Balearic Islands.

One consideration: new-build developers sometimes absorb AJD or offer promotions that effectively reduce the buyer's tax cost. This is negotiable and worth asking about.

When ITP is paid and how

ITP is due within 30 calendar days of signing the purchase deed (escritura) at the notary. The tax is paid to the regional tax authority (Hacienda autonomica) of the region where the property is located, not to the central government.

Your lawyer or gestor (administrative agent) typically handles the ITP filing and payment on your behalf as part of the post-completion process. They submit the self-assessment form (Modelo 600 in most regions) and arrange payment from funds held for this purpose.

Late payment incurs surcharges: 5% if paid within 3 months, 10% within 6 months, 15% within 12 months, and 20% plus interest after 12 months. Given the clear deadline and the fact that your professional team handles this, late payment shouldn't be an issue - but it's worth understanding the consequences.

Reduced rates and exemptions

Most regions offer reduced ITP rates for specific buyer categories. These vary by region and have specific eligibility criteria, but the common reductions include:

Young buyers and first-time buyers. Several regions offer reduced rates for buyers under a certain age (typically 32-36) purchasing their first primary residence, often with a property price cap. This is most relevant for buyers planning to become Spanish residents.

Buyers with disabilities. Reductions typically apply for buyers with a certified disability of 33% or higher. The reduced rate varies by region.

Large families (familia numerosa). Families with three or more children may qualify for reduced rates in many regions.

Social housing (VPO). Purchases of officially designated social housing (vivienda de proteccion oficial) attract significantly reduced ITP in most regions.

These reductions are primarily aimed at Spanish residents and primary-residence buyers. International buyers purchasing a holiday home or investment property are less likely to qualify. Your lawyer can confirm whether any reductions apply to your specific situation.

How ITP compares across a standard purchase

To illustrate the real impact of regional ITP differences, here's the total ITP cost on the same 500,000 euro resale property across Spain's most popular international buyer regions:

*Balearic rate is the effective rate after applying the sliding scale to a 500,000 euro property.

The difference between the cheapest and most expensive regions on a 500,000 euro property is 20,000 euros in tax. At 1,000,000 euros, that gap widens further. This is a cost factor worth considering alongside property prices and lifestyle preferences when choosing where to buy.

Frequently asked questions

Is ITP negotiable?
No. ITP rates are set by law and cannot be negotiated, reduced by the seller, or avoided. They apply to all resale property transfers within the region.

Can I avoid ITP by buying a new build?
New builds don't attract ITP. They attract IVA (10%) plus AJD (0.5-1.5%) instead. Whether this is cheaper depends on the region - in low-ITP regions like Madrid (6%), buying resale is cheaper in tax terms. In high-ITP regions like the Balearics, new builds may be more tax-efficient.

What if the property is undervalued in the contract?
The tax authority can use the property's fiscal reference value (valor de referencia) if it exceeds the declared purchase price. Under-declaring the price to reduce ITP is illegal and carries penalties including fines and additional tax assessments. Banks also won't finance a purchase where the declared price is below market value.

Do I pay ITP on the total price including furniture?
If the sale includes furniture or moveable items, these should be itemised separately in the purchase deed at their fair value. ITP only applies to the property transfer, not to moveable goods. Your lawyer should ensure the deed properly separates these.

Is ITP included in the property price quoted by agents?
No. Property prices in Spain are always quoted excluding taxes and buying costs. ITP is an additional cost paid by the buyer on top of the purchase price.

Next steps

ITP is one component of your total buying costs. For a complete breakdown of every expense including notary, registry, legal, and mortgage fees, see our full cost guide which includes worked examples at different price points across different regions.

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This content is for informational purposes only and does not constitute tax advice. Zerodown is a mortgage introducer, not a tax advisor. ITP rates and reduced-rate eligibility criteria can change. Always verify current rates with your lawyer or tax advisor before committing to a purchase.