Property Transfer Tax (ITP) in Spain by Autonomous Community: 2026 Guide

Property Transfer Tax (ITP) in Spain by Autonomous Community: A 2026 Guide for Foreign Buyers

If you are buying a resale property in Spain, the single largest tax you will pay at closing is the Impuesto sobre Transmisiones Patrimoniales (ITP) — the Property Transfer Tax. Unlike VAT (IVA), which applies to new-build purchases from a developer, ITP applies to second-hand homes sold between private parties, and it is collected by the autonomous community where the property is located rather than by the central government.

That regional control is the reason the same villa can cost meaningfully more or less in tax depending on whether it sits in Andalucía, the Balearic Islands, Madrid, or Catalonia. This guide walks you through how ITP works in 2026, what rates and brackets you can typically expect by region, who pays what, and the pitfalls foreign buyers most often run into.

Important: ITP rates, brackets and reductions are set by each autonomous community and are revised regularly. Always confirm the current figure with the Agencia Tributaria of the specific community (Hacienda autonómica) or with an independent licensed Spanish abogado before signing anything. Tax law changes.

What ITP Is — and When It Applies

ITP is a one-time tax paid by the buyer when a property changes hands between private individuals. The key triggers:

• Resale residential property (second-hand homes, apartments, villas, plots already in private hands).
• Garage spaces, storage rooms, and rural land sold by private owners.
• Transfers where the seller is not acting as a VAT-registered business.

It does not apply to:

• New-build properties sold directly by a developer — those pay IVA (10% for residential) plus AJD (Actos Jurídicos Documentados, stamp duty), typically 0.5%–1.5% depending on the region.
• Commercial properties sold by a business under certain conditions (those fall under IVA + AJD).

You declare and pay ITP using Modelo 600 (or the regional equivalent) within 30 business days of signing the public deed (escritura pública) before the notary. If you miss that window, surcharges and interest accumulate, and your title may not be registrable at the Registro de la Propiedad.

How the Tax Is Calculated

Two principles matter:

1. Taxable base = the "reference value" (*valor de referencia*) set by the Cadastre, or the declared purchase price — whichever is higher. Since the 2021 reform, the Catastro publishes a reference value for most properties, and Hacienda will not accept a lower declared base unless you can prove the property is genuinely worth less.
2. The rate is regional. Some communities apply a flat rate; others use a progressive scale based on property value.

If you declare below the reference value, expect a complementary assessment (*liquidación complementaria*) from the regional tax authority later, plus penalties.

ITP Rates by Autonomous Community — General Overview for 2026

The figures below are approximate general rates for standard residential resale purchases. Reductions for young buyers, large families, primary residence, rural areas, or disability often apply. Confirm the exact rate and any reductions you qualify for with the regional Hacienda or your abogado.

Flat-rate communities (approximate)

• Madrid: around 6% — historically among the lowest in Spain.
• Navarra: around 6% (foral regime; rules differ from common territory).
• País Vasco: around 4% for primary residence in many cases, 7% otherwise (foral regime, varies by Diputación Foral — Bizkaia, Gipuzkoa, Álava).
• La Rioja: around 7%.
• Canarias: around 6.5% (note: Canarias uses IGIC instead of IVA for new builds).
• Ceuta and Melilla: reduced rates apply under their special tax regimes.

Progressive-scale communities (approximate brackets)

• Andalucía: a general rate of around 7% since the 2021 simplification; reductions exist for young buyers and primary residence.
• Cataluña: progressive, typically 10% up to a threshold and 11% above it; reductions for young buyers and large families.
• Comunidad Valenciana: general rate around 10%, with reduced rates for primary residence and protected housing.
• Islas Baleares: progressive scale running roughly 8% to 13% depending on value — among the highest in Spain for luxury property.
• Murcia: around 8% general.
• Aragón: progressive scale, generally 8% to 10%.
• Castilla-La Mancha: around 9% general.
• Castilla y León: progressive, generally 8% to 10%.
• Extremadura: progressive, generally 8% to 11%.
• Galicia: around 9% general, with reductions available.
• Asturias: progressive, generally 8% to 10%.
• Cantabria: around 9% general.

Again — these are orientative ranges based on long-standing regional patterns. Each community publishes its current tax law annually; verify before you sign.

Who Pays What at Closing

When you buy a resale property in Spain, expect the buyer to cover:

• ITP (the figure above, on the higher of price or reference value).
• Notary fees (regulated nationally, typically €600–€1,500 depending on price).
• Land Registry fees (typically €400–€900).
• Gestoría fees, if you use one to file Modelo 600 and register the deed.
• Your own abogado (typically 1% of the price, plus VAT).

The seller typically pays:

• Plusvalía municipal (municipal capital gains on land value increase).
• IRPF / IRNR capital gains on the sale.
• Outstanding IBI (annual property tax) and community fees up to the closing date.
• The 3% retention withheld at closing if the seller is non-resident, paid into Hacienda via Modelo 211.

Budget roughly 10%–13% on top of the purchase price for total acquisition costs on a resale, depending on the region. New-builds tend to land in a similar range once IVA and AJD are added.

Common Pitfalls Foreign Buyers Run Into

• Declaring below the reference value to "save tax." The Catastro's valor de referencia is the floor. Underdeclaring almost guarantees a complementary assessment, penalties, and a fight you will lose.
• Forgetting that ITP is regional. A buyer comparing a flat in Madrid to one in Palma is comparing very different tax outcomes. Factor it into your offer.
• Missing the 30-business-day filing window. Notaries do not pay ITP for you. If you do not have a gestor or abogado handling Modelo 600, you can easily blow the deadline.
• Assuming new-build rates apply to a resale from a "developer." If the developer is reselling a property already inhabited, or selling a unit acquired second-hand, it may fall under ITP rather than IVA. Get this confirmed in writing.
• Overlooking reductions. Young buyers (often under 35), large families, buyers with disabilities, and primary-residence purchasers can qualify for substantial reductions in many regions — sometimes cutting the rate in half. Ask your abogado specifically.
• Not budgeting for the AJD on the mortgage. If you finance the purchase, AJD on the mortgage deed is a separate cost. Since 2018, the lender pays AJD on mortgage loans, but associated notary and registry costs still fall on the borrower.

FAQ

Is ITP the same across Spain? No. Each autonomous community sets its own rate, brackets, and reductions. Madrid and Navarra are typically the lowest; the Balearics and Cataluña are typically the highest.

Can I deduct ITP from future capital gains tax? Yes. ITP forms part of your acquisition cost for IRPF/IRNR capital gains purposes when you sell. Keep the Modelo 600 receipt forever.

Does ITP apply if I buy through a Spanish company (SL)? Generally yes for resale residential property — the buyer's legal form does not change the tax. Commercial transactions between VAT-registered parties may follow different rules.

What if the seller is a non-resident? You still pay ITP normally. Separately, you are required to withhold 3% of the price and pay it to Hacienda via Modelo 211 within 30 days — this is the seller's capital gains prepayment, not yours.

Are there reductions for foreign buyers specifically? No — reductions are based on personal circumstances (age, family status, residency intent), not nationality. EU and non-EU buyers are treated equally for ITP purposes.

Bottom Line

ITP is the tax that quietly determines whether your Spanish purchase costs 8% or 13% on top of the sticker price. Because it is regional, the same money buys you a very different deal depending on the comunidad autónoma. Before you make an offer, run the math with an independent abogado using the current regional rate and the property's valor de referencia — not the asking price. Tax law changes, regional budgets change, and reductions you qualify for today may not exist next year. Confirm everything with the regional Hacienda or a licensed Spanish professional before signing.