ITP in Spain: definition, calculation, rates by region in 2026 and payment

ITP in Spain, or Impuesto sobre Transmisiones Patrimoniales, is a tax paid by the buyer when a resale property changes hands. It can amount to several thousand or even tens of thousands of euros, depending on the property price and the region where it is located. So build it into your financing plan from the start.

ITP is special because it is not the same everywhere in Spain. The rate varies from one region (autonomous community) to another: buying in Madrid, Andalusia, the Canary Islands or the Valencian Community does not necessarily lead to the same tax bill. Before signing, you need to understand what ITP is, how it is calculated and when it applies.

Depending on the region, ITP is generally between 4% and 13% of the purchase price or of the value used by the tax authorities, excluding reduced rates and special cases.

What is ITP in Spain?

ITP is one of the main taxes to know about when you buy property in Spain. It applies to sales of resale properties between private individuals, as opposed to new homes, which fall under a different tax regime.

In practice, if you buy a flat, a house or a plot of land from a private individual, the Spanish authorities consider that an asset has been transferred. This transfer triggers ITP.

ITP meaning: what does “Impuesto sobre Transmisiones Patrimoniales” mean?

ITP stands for Impuesto sobre Transmisiones Patrimoniales. In English, it translates as “property transfer tax”.

The name may sound technical, but the idea is simple: when a property passes from one owner to another, the buyer pays a tax on that transfer. In property, ITP mainly applies to buying a second-hand home.

That is why you will sometimes see ITP tax in English-language content, or ITP impuesto in Spanish. Either way, it is the same Spanish tax on the transfer of a property.

When does ITP apply?

ITP generally applies when you buy a resale property in Spain. This includes, for example:

• buying an existing flat from a private individual;
• buying a second-hand house;
• buying land or commercial premises in some cases;
• some other transfers of assets between private individuals.

For an international buyer, the most common case is a resale home bought as a second home, a main home or a rental investment. To see where this tax comes in, it helps to place ITP within the property buying process in Spain, from reserving the property to signing before the notary.

However, ITP does not apply if you buy a new home from a developer. In that case, the purchase is in principle subject to Spanish VAT, called IVA, and in some cases to AJD.

Who pays ITP on a property purchase in Spain?

ITP is paid by the buyer. This is worth stressing, because some foreign buyers think the tax is shared with the seller or included in the sale price. In practice, it comes on top of the property price and the other buying costs.

For example, if you buy a resale flat for €250,000 in a region where the ITP rate is 7%, the tax may come to about €17,500. This amount must be budgeted on top of the purchase price, notary fees, registration fees and any support fees.

ITP is therefore a key factor in working out the real budget for a property purchase in Spain. A property may look affordable at first, then turn out more expensive once all the costs are included.

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ITP, VAT, AJD: do not confuse the taxes on a property purchase

When people talk about tax on a property purchase in Spain, several terms keep coming up: ITP, VAT, AJD, notary fees, local property tax, non-resident tax. It is easy to mix them up, especially when you are new to the Spanish tax system.

To see clearly, separate the taxes due on purchase according to the type of property. ITP mainly concerns resale properties. VAT and AJD mainly concern new builds. These taxes do not all add up in the same way.

Buying a resale property: ITP

If you buy a resale property, the main tax to budget for is ITP. This is the most common case for buyers looking for an existing flat or house, or a second-hand property in a Spanish town or city.

ITP depends on two main factors: the value used for the calculation and the rate in the region where the property is located. That is why two purchases at the same price can lead to different tax depending on whether the property is in Madrid, Málaga, Alicante, Castellón or the Canary Islands.

Depending on the region, ITP is generally between 4% and 13% of the purchase price or of the value used by the tax authorities, excluding reduced rates and special cases.

ITP is generally paid after the deed of sale is signed before the notary, within the deadline set by the relevant tax authority. So do not leave it out of the cash you need to complete the purchase.

Buying a new-build property: Spanish VAT and AJD

If you buy a new home from a developer, the tax works differently. In that case, the purchase is generally not subject to ITP but to Spanish VAT, called IVA.

On top of this VAT, there may be AJD, or Actos Jurídicos Documentados, which translates as “documented legal acts” and is often called stamp duty. This tax is linked to the formalisation of some notarial deeds and also varies by region.

So the distinction is essential:

• a resale property in principle means ITP;
• a new build usually means Spanish VAT and AJD.

This difference can directly affect the total cost of the purchase. Before comparing two properties, check their legal status: new build, resale, new development or a special case.

Why ITP is not an annual tax

ITP is paid only once, at the time of purchase. Do not confuse it with the recurring taxes on owning a property in Spain.

Once you are the owner, other taxes may apply, such as IBI, the local property tax, or IRNR, the non-resident income tax, if you are not tax resident in Spain (19% for EU/EEA residents, 24% for others). These taxes work differently: they do not tax the purchase of the property, but owning it or the income it may generate. To find out more, see our guide to property taxes in Spain.

So ITP comes at the start of the project. It is one of the buying costs to plan for before signing, along with notary fees, land registry fees and advisory fees. It is a one-off cost, but large enough to shape your budget from the very first estimates.

How do you calculate ITP in Spain?

Calculating ITP in Spain is fairly simple: the rate set by the region is applied to the value used for the property. In practice, the formula is:

The tax base: purchase price or reference value

To calculate ITP, the price stated in the deed of sale is not always enough. The Spanish tax authorities may use a reference value (valor de referencia), in particular when it is higher than the declared purchase price.

This reference value is used to prevent under-declared prices in property sales. In other words, if you buy a property for less than the value set by the authorities, ITP may be calculated on that administrative value rather than on the price actually paid.

This is an essential point to check before signing. A buyer may think they have estimated the tax correctly, then find that the actual amount is higher because the tax base used is not the one they expected.

A simple ITP calculation example

Let us take a deliberately simple example.

• You buy a resale flat in Spain for €250,000.
• The property is in a region where the applicable ITP rate is 7%.
• The calculation is therefore: €250,000 x 7% = €17,500

In this example, the ITP due is €17,500. This amount comes on top of the purchase price and the other buying costs: notary, land registry, any bank fees, support fees or advisory fees.

If the same property were in a region where the ITP rate is 10%, the calculation would be different:

• €250,000 x 10% = €25,000

The difference is therefore €7,500 for the same purchase price. That is why the ITP rate should be part of your very first budget estimates, especially if you are choosing between several regions of Spain. Non-resident buyers should also plan for the taxes due after the purchase, in particular those explained in our guide to non-resident taxes in Spain.

ITP is set by each region

In Spain, the ITP rate is not set only at national level. Each region can set its own rate, use bands based on the property's value and grant reduced rates in some cases: main home, young buyer, large family, disability, protected housing or a purchase in a rural area. These reduced rates almost always require the property to become your main home, so in practice they are for people who live in the region. A non-resident buying a second home pays the general rate.

Even though each region applies its own rules, Spanish regions can be grouped into a few broad categories by tax level. This gives a quick view of the regions with the lowest tax on a resale purchase. It is only indicative, as each region also has its own reduced rates, exemptions and specific schemes.

There are generally four main tax levels:

• Low-tax regions (7% or less): the Basque Country, Madrid, the Canary Islands, Andalusia, La Rioja and Navarre are among the regions with the lowest ITP.
• Intermediate regions (around 8%): Aragon, Asturias, the Balearic Islands, Castile and León, Extremadura, Galicia and Murcia apply more moderate rates, sometimes with progressive bands for high-value properties.
• Higher-tax regions (around 9%): Cantabria, Castile-La Mancha and, since 1 June 2026, the Valencian Community are in a higher tax band.
• The highest-tax regions (10% to 13%): Catalonia applies the highest ITP rates in Spain on a resale property, from 10% to 13%. The Valencian Community (11%) and the Balearic Islands (12% to 13%) also reach these levels above €1 million.

The rates below mainly concern buying a resale home, excluding very specific cases. Always check them before signing, as tax rules can change and reductions often depend on the buyer's profile, the property price and how it will be used.

Buying in Andalusia - ITP rate

In Andalusia, the old progressive scale of 8%, 9% and 10% was replaced by a single rate in the 2021 reform. For a resale property, including in Málaga and on the Costa del Sol, the general ITP rate is now 7%. Reduced rates may apply, for example for a main home or some buyer profiles, which in practice means buyers who live in Andalusia, subject to conditions.

Buying in Aragon - ITP rate

In Aragon, the progressive scale still applies. The ITP rate ranges from 8% to 10% depending on the property's value:

• up to €400,000: 8%;
• €400,000 to €450,000: 8.5%;
• €450,000 to €500,000: 9%;
• €500,000 to €750,000: 9.5%;
• above €750,000: 10%.

Large families can get a rebate of 50% on the tax due for their main home, subject to conditions. Buyers under 35, people with a disability of 65% or more and women who are victims of gender-based violence can also get a rebate of 12.5% when buying a main home worth up to €100,000, under the conditions set by Aragon's regulations.

Buying in Asturias - ITP rate

In Asturias, the general rate is progressive and ranges from 8% to 10% depending on the property's value:

• up to €300,000: 8%;
• €300,000 to €500,000: 9%;
• above €500,000: 10%.

Reduced rates may apply in some cases, notably for protected housing or some buyer profiles buying their main home.

Buying in the Balearic Islands - ITP rate

In the Balearic Islands, ITP is among the highest in Spain. The rate is progressive and can range from 8% to 13% depending on the property's value. Specific schemes exist for some buyers, notably young people, large families and people with a disability buying their main home. (source: https://guiafiscal.es/patrimonio/itp/baleares/)

Buying in the Canary Islands - ITP rate

In the Canary Islands, the general ITP rate is 6.5% for a resale property. Reduced rates may exist for some buyer profiles or for buying a main home, subject to conditions.

Buying in Cantabria - ITP rate

In Cantabria, the general rate has been 9% since 2024. For a main home, the rate is 7% up to €300,000 and 9% above, and 4% for some buyers (large families, under-40s, people with a disability) or in areas at risk of depopulation. These lower rates require you to live in the home. (source: https://guiafiscal.es/patrimonio/itp/)

Buying in Castile-La Mancha - ITP rate

In Castile-La Mancha, the general ITP rate is 9%. A reduced rate of 6% may apply in some cases, notably for buying a first main home worth up to €240,000, subject to conditions on value, financing and personal situation.

Buying in Castile and León - ITP rate

In Castile and León, the general rate is 8%, with tax of up to 10% on the part of the value above €250,000. Reduced rates may apply for young buyers, large families, people with a disability, protected housing or some purchases in rural municipalities, for a main home.

Buying in Catalonia - ITP rate

In Catalonia, the ITP rate is now progressive and ranges from 10% to 13% depending on the property's value. Since the latest reforms, the standard scale is: 10% up to €600,000, 11% between €600,001 and €900,000, 12% between €900,001 and €1,500,000, then 13% above that. Reduced rates may exist for some profiles, notably young buyers, large families or people with a disability buying their main home, within income limits based on the Spanish income tax return. (source: https://infoitp.es/catalunya/)

Buying in Extremadura - ITP rate

In Extremadura, ITP is still progressive, generally between 8% and 11% depending on the property's value:

• up to €360,000: 8%;
• €360,000 to €600,000: 10%;
• above €600,000: 11%.

Reduced rates may apply for buying a main home or for some buyer profiles, subject to conditions.

Buying in Galicia - ITP rate

In Galicia, the general rate for buying a resale property is now 8%. It has been at this level since 2024. Reduced rates may apply, notably 7% for a main home and 3% for buyers under 36, large families and people with a disability, or for some purchases in rural areas, always for a home you live in. (source: https://diegosimal.com/impuesto-transmisiones-patrimoniales-galicia/)

Buying in La Rioja - ITP rate

In La Rioja, the general ITP rate is 7%. Reduced rates may apply to some main home purchases, notably for young people, large families, people with a disability or protected housing, subject to income and personal conditions.

(source: https://guiafiscal.es/patrimonio/itp/)

Buying in Madrid - ITP rate

In the Community of Madrid, the general ITP rate is 6% for a resale property. It is one of the lowest rates in Spain outside the foral regimes (Basque Country and Navarre). A reduced rate of 4% applies notably to some large families buying their main home.

Buying in Murcia - ITP rate

In the Region of Murcia, the general ITP rate was 8% until 24 July 2025. It has been 7.75% since 25 July 2025. Reduced rates may apply for some profiles, notably young buyers, large families or people with a disability, when the property is their main home and the conditions are met.

Buying in Navarre - ITP rate

In Navarre, the general ITP rate is 6%. A reduced rate of 5% may apply in some cases, notably when a family with at least two children buys its main home (on the first €180,304), subject to conditions.

Buying in the Basque Country - ITP rate

In the Basque Country, the tax regime is foral and depends on the province. For homes, the usual rate is 4%, and in some cases it can fall to 2.5% for a main home, subject to conditions. For property in general, the rate can reach 7%.

(source: https://infoitp.es/pais-vasco/)

Buying in the Valencian Community - ITP rate

In the Valencian Community, the general rate has changed. Since 1 June 2026, ITP has been 9% for resale properties worth up to €1,000,000. For properties worth more, the rate is 11%. This applies to Valencia, Alicante and Castellón, among others. Reduced rates may apply for some young buyers, large families, people with a disability or protected housing, when the home is the buyer's main residence.

Buying in Ceuta and Melilla - ITP rate

Ceuta and Melilla do not set their own rate like the autonomous communities, so the State rate applies to property transfers: 6%, but a 50% rebate applies to property located there, so the tax is 3% in practice.

Which special cases and reduced ITP rates exist in Spain?

Beyond each region's general rate, ITP can be reduced in some situations. These reductions mainly concern buying a main home, subject to conditions on profile, income, property value or how long you keep it. In practice, they are for buyers who will live in the region, not for non-residents buying a second home. They do not apply automatically: the buyer must prove eligibility and declare the transaction correctly, often on form 600 (Modelo 600).

• Young buyers: several regions grant a reduced rate to younger buyers, with an age limit of 35, 36 or 40 depending on the region. The home must generally become their main residence and meet some income or value ceilings.
• Large families: holders of an official large family certificate can get a reduced rate in many regions. This reduction is often subject to the home being the main residence and to a price ceiling.
• People with a disability: tax benefits exist for buyers with a recognised disability, generally from 33% or 65% depending on the region. The property must usually be their main home.
• Protected housing (VPO): buying officially protected housing (Vivienda de Protección Oficial) can qualify for a reduced ITP rate. Conditions vary by region and by type of housing.
• Purchases in rural or depopulated areas: some regions encourage new residents to settle in small municipalities by offering particularly low ITP rates for buying a main home.
• First main home: several regions offer specific reductions for buyers purchasing their first main home, subject to conditions on income, property value or financing.

When and how do you pay ITP in Spain?

ITP is not paid on the day you sign before the notary. Once the deed of sale is signed, the buyer has a legal deadline to declare and pay the tax to the relevant tax authority.

This step is essential to complete the purchase properly. If ITP is not paid, final registration of the property can be blocked and penalties may apply.

The deadline for payment after signing before the notary

ITP must be declared and paid within 30 working days of signing the public deed of sale, or one month in regions such as Catalonia, the Valencian Community and the Balearic and Canary Islands.

This deadline can vary slightly between regions and local administrative procedures. So check the rules in the region where the property is located.

In practice, this step is often handled by the lawyer, the gestor or the professional supporting the buyer in the purchase. This avoids administrative errors and late payments.

The form to file

ITP is usually declared on form Modelo 600, used in most regions for property transfers.

The form must be filed with the relevant regional tax authority, together with proof of payment and the documents relating to the transaction.

Today, many regions let you complete part or all of the procedure online. The exact arrangements depend on the region concerned.

Documents usually required

To declare ITP, the following documents are usually requested:

• the public deed signed before the notary (escritura pública) ;
• the identification details of the buyer and the seller;
• the buyer's NIE number;
• the property's cadastral reference;
• proof of the purchase price;
• the completed tax form;
• proof of payment of the tax.

Depending on the region and the type of property, further documents may be requested.

What happens if you pay late?

Not paying ITP, or paying it late, can have significant financial consequences.

The Spanish tax authorities can apply:

• surcharges;
• late-payment interest;
• in some cases, additional administrative penalties.

The longer the delay, the higher the final cost can be. So plan for this cost when preparing your purchase budget, so that the funds are available right after signing.

Who usually handles payment?

Although ITP is legally payable by the buyer, the buyer does not always handle the paperwork personally.

When the purchase is made with professional support, payment is often handled by:

• a lawyer specialising in Spanish property law;
• a gestor (administrative agent);
• a tax adviser;
• or a buyer's agent appointed to coordinate the whole purchase process.

This approach secures the transaction and makes sure administrative deadlines are met.

For a foreign buyer, especially one who is not in Spain after the signing, delegating these formalities is generally the simplest and safest option.

ITP on a rental contract

ITP can also apply to a rental contract between private individuals, as a lease counts as a transfer for value, and it is paid by the tenant. Since March 2019, leases of a home used as the tenant's permanent residence are exempt. For other leases, the tax base is the total rent over the whole term of the contract.

For example, with a rent of €500 a month on a one-year contract that is not exempt, the tax base is 500 x 12 = €6,000.

Leases are not taxed at the 6% purchase rate. The Community of Madrid applies the State scale for leases, which gives €30.77 on a €6,000 tax base. Catalonia (0.5%) and Andalusia (0.3%) apply a percentage rate instead.