ITP Transfer Tax by Region in Spain: How Andalusia, Madrid, Valencia and Catalonia Compare for Resale Buyers

If you are buying a resale (second-hand) home in Spain, the single largest tax you will pay at closing is almost always the Impuesto sobre Transmisiones Patrimoniales (ITP) — the property transfer tax. Unlike VAT (IVA), which is set nationally and applies to new-build purchases, ITP is set by each autonomous community (comunidad autónoma). That means the same €400,000 apartment can trigger a very different tax bill depending on whether it sits in Málaga, Madrid, Valencia or Barcelona.

This guide walks you through how ITP works, how the four most-popular regions for foreign buyers compare, the reduced rates you may qualify for, and the traps that catch international buyers most often. Tax rules change frequently — always confirm the current rate and any reductions with the regional tax agency (Agencia Tributaria autonómica) or a licensed Spanish *abogado* or *asesor fiscal* before signing anything.

What ITP Actually Is (and When You Pay It)

ITP is the tax you pay when you buy a resale property from a private seller — meaning the seller is not a developer selling a brand-new unit. Key points:

• Who pays: the buyer, always.
• When: within 30 business days of signing the escritura pública (title deed) at the notary.
• Where: filed with the tax authority of the autonomous community where the property is located, via Model 600.
• Tax base: the higher of the purchase price or the *valor de referencia — a reference value calculated by the Catastro (national land registry). This has been the standard since the 2021 tax reform and remains in force in 2026. If you pay less than the valor de referencia*, the tax office still calculates ITP on that reference figure — a very common surprise for foreign buyers.

If your ITP filing is late, expect surcharges and interest. If you underdeclare, expect a comprobación de valores (value check) and a supplementary assessment.

The Regional Comparison

Below is a qualitative comparison of the four regions where foreign buyers concentrate. Rates are indicative of what has applied in recent years — verify the exact current percentage with the regional tax agency before closing, because autonomous communities adjust these rates through their annual budget laws.

Andalusia (Andalucía)

Andalusia dramatically simplified its ITP in 2021, moving from a progressive scale (that reached 10%) to a single flat rate applied to all resale purchases. That flat rate has been widely cited around 7%, and the region has kept it competitive to attract buyers to the Costa del Sol, Costa de la Luz and inland Andalusia.

Reductions you may qualify for typically include:

• Lower rates for buyers under 35 purchasing a habitual residence below a certain price cap.
• Reductions for large families (familia numerosa) and buyers with recognised disabilities.
• Reductions for properties in rural depopulation zones.

Andalusia is currently the most foreigner-friendly region on ITP — both simple and moderate.

Community of Madrid

Madrid has historically been the lowest-tax region in Spain for property, wealth and income tax. For ITP on resale property, Madrid uses a progressive scale that starts around 6% for lower-value homes and can rise for higher brackets — well below what most other regions charge.

Reduced rates commonly available in Madrid:

• A reduced rate for the purchase of a habitual residence below a price threshold.
• Specific reductions for large families buying their main home.
• Reductions for young buyers under a specific age threshold.

For a €500,000 city-centre flat, Madrid's effective ITP bill is typically the lowest of the four regions covered here — one reason Madrid has retained investor interest despite high headline prices.

Valencian Community (Comunitat Valenciana)

Valencia — including Alicante, Costa Blanca and Costa del Azahar — applies a progressive ITP scale that is generally the highest of the four regions compared here. The general rate has stood at 10%, with an upper bracket of 11% for very high-value transactions.

Available reductions include:

• Reduced rate (commonly cited around 8%) for the purchase of a habitual residence by families meeting certain conditions.
• Further reductions for large families, buyers with disabilities, and young buyers under a defined age.
• Specific reductions for protected housing (VPO).

If you are buying a €300,000 villa near Denia or Jávea as a second home, expect the full general rate. Factor this into your total acquisition budget — it is meaningfully higher than Andalusia or Madrid.

Catalonia (Catalunya)

Catalonia also uses a progressive scale, generally starting at 10% and rising in the higher brackets — with recent reforms adding an upper tier for luxury properties above certain thresholds, and higher rates for large real-estate purchasers (buyers of multiple units or grandes tenedores).

Available reductions in Catalonia typically include:

• Reduced rate for habitual residence for young buyers, large families and buyers with disabilities.
• Reductions for protected housing.

Catalonia — particularly Barcelona and the Costa Brava — is therefore among the most expensive regions on ITP, and the gap widens for higher-value or investor-scale purchases.

A Practical Example

Imagine you are buying a €400,000 resale apartment as a second home (not habitual residence), so no reduced rate applies:

• Andalusia: ~7% flat → around €28,000.
• Madrid: progressive from ~6% → around €24,000–€26,000 depending on bracket structure.
• Valencia: 10% general → around €40,000.
• Catalonia: 10% progressive → around €40,000+.

The delta between Madrid and Catalonia on this transaction can exceed €15,000 — real money that should shape where you buy if the region choice is otherwise flexible.

Common Pitfalls for Foreign Buyers

• Assuming the purchase price is the tax base. It is not — the valor de referencia usually is, and it can be higher than what you actually pay.
• Confusing ITP with IVA. New-builds pay 10% IVA + ~1.5% AJD (stamp duty) nationwide; resales pay regional ITP instead. Never both.
• Missing habitual-residence reductions. If you are relocating to Spain and this will be your main home, ask your abogado whether you qualify — the savings can be substantial.
• Late filing. The 30-business-day clock starts at the notary. Your lawyer or gestoría typically handles Model 600, but confirm it in writing.
• Ignoring regional reforms. Autonomous communities revise ITP frequently. A rate you read about a year ago may no longer be current.
• Forgetting the *plusvalía municipal. That is a separate municipal tax on the increase in urban land value, usually paid by the seller* — but negotiable in the contract.

Short FAQ

Do non-residents pay a different ITP rate? No. ITP is the same for residents and non-residents. What differs is your access to habitual residence reductions — which by definition require the property to be your main home.

Can I finance ITP with my mortgage? Spanish mortgages typically fund the purchase price only. Plan to pay ITP and other closing costs (notary, registry, legal fees) — usually 10–13% on top of the price — from your own funds.

What if the *valor de referencia* seems wrong? You can pay ITP on your lower purchase price and challenge the reference value, or pay on the reference value and file a rectification claim afterwards. Both routes require a lawyer — the second is usually safer.

Does buying through a company change ITP? Generally no for the transfer tax itself, though corporate ownership has broader tax implications (corporate tax, non-resident tax, wealth tax exposure). Get bespoke advice before choosing a structure.

Final Word

ITP is the biggest single line item in your Spanish closing costs, and it is the one that varies most by geography. Andalusia and Madrid remain the most tax-efficient of the popular regions for foreign buyers; Valencia and Catalonia are meaningfully more expensive. Reduced rates exist almost everywhere for habitual residences, young buyers and large families — but eligibility rules are strict.

Because autonomous communities can and do change these rates through their budget laws, and because the valor de referencia on your specific property can only be checked property-by-property, always verify current figures with the regional tax agency and an independent licensed Spanish *abogado* or *asesor fiscal* before you sign a reservation contract. Laws, thresholds and reference values change — treat the numbers in any guide, including this one, as a starting point, not the final word.