ITP tax in Spain: what it is, how it's calculated and the rate by region

ITP (Impuesto de Transmisiones Patrimoniales, the property transfer tax) is the tax you pay when you buy a resale property from a private individual or from a company that isn't a developer. It's the biggest tax cost of the purchase and yet many buyers arrive at the notary's office without knowing exactly how much it is. Here I break it down by region (comunidad autónoma), with data updated for 2026.

How ITP is calculated

The formula is simple: the purchase price multiplied by the tax rate of the region where the property is located. If you buy a flat for €200,000 in Andalusia (a 7% rate), you pay €14,000 in ITP, unless the reference value (valor de referencia) set by the Catastro, Spain's cadastral register, is higher than the price: in that case you pay on that value. You can't deduct the mortgage from the base, although there are reduced rates in certain situations.

ITP rates by region (2026)

• Andalusia: 7% (general rate). A reduced rate of 3.5% for buyers under 35 on low incomes and for large families.
• Catalonia: 10% (general rate). Among the highest in Spain. A reduced rate of 5% for under-33s with a taxable base below certain limits.
• Madrid: 6% (general rate). The lowest of the large regions. No general distinction by age.
• Valencian Community: 9% (general rate since 1 June 2026; 11% if the property is worth more than 1 million euros). A reduced rate of 6% for the first main home of under-35s, up to €180,000, with an income limit.
• Basque Country: 4% (general rate in Álava and Gipuzkoa), although it operates under its own régimen foral (its historic, separate tax system).
• Galicia: 8% (general rate). A reduced rate of 3% for the main home of under-36s (with price and wealth limits).
• Castilla y León: 8% (general rate). A reduced rate of 4% for buyers under 36.
• Aragon: 8% (general rate).
• Balearic Islands: A progressive rate of 8% to 13% depending on the value of the property.

When you pay IVA instead of ITP

IVA (Spanish VAT) applies when the seller is a developer or a company acting as one, and it's the first transfer of the property (a new home). In that case you pay 10% IVA (4% for VPO, state-subsidised housing) plus Actos Jurídicos Documentados (the stamp duty on the deed: 0.5-1.5%). If the property is a resale and the seller is a private individual, you pay ITP. If the seller is a company but the property has already been sold before, you also pay ITP. Bank repossessions are resale properties and, although the seller is the bank or its servicer, they are taxed under ITP.

Is there any way to reduce ITP?

The reduced rates are the main mechanisms, and applying them if you don't meet the requirements is a tax offence. You need to document that you meet the conditions (age, income, type of family) at the time of filing. In some cases, if the value declared in the deed is lower than the Catastro's reference value, Hacienda (the Spanish tax authority) can issue a supplementary assessment for the difference.

Plan your purchase: Use RadarPro to analyse the total cost of acquisition (price + ITP + other costs) before making an offer. See also the complete tax guide for property investors.