ITP Tax When Buying a Resale Property in Spain

The ITP (Impuesto sobre Transmisiones Patrimoniales) is Spain's property transfer tax, and it is often the single largest unexpected cost for international buyers purchasing a resale property. Understanding it before you make an offer — not after — is essential for accurate budgeting.

What Is the ITP?

The ITP is a regional tax paid by the buyer when purchasing a second-hand (resale) residential property in Spain. It applies to all property transfers between private individuals — it does not apply to new builds from developers (which are subject to VAT instead).

The tax is calculated as a percentage of the property's purchase price or, if higher, the reference value (valor de referencia) established by the Spanish tax authority (Catastro). Since January 2022, the tax authority uses this reference value as the minimum taxable base, which can exceed the agreed purchase price in some areas.

ITP Rates by Region — Andalucía

ITP is a regional tax — each Spanish autonomous community sets its own rate. The Costa del Sol falls within Andalucía, which currently applies a flat rate of 7%. This is one of the most competitive rates in Spain, following a reduction from 8% in 2021.

ITP rates in selected regions (2025):

Andalucía (Costa del Sol)	7%
Cataluña	10%
Madrid	6%
Valencia	10%

How to Calculate Your ITP

The calculation is straightforward — with one important caveat:

ITP = Purchase price (or reference value, whichever is higher) × 7%

Examples:

Property purchased at €250,000: ITP = €17,500
Property purchased at €400,000: ITP = €28,000
Property purchased at €600,000: ITP = €42,000

The reference value caveat: since 2022, if the Spanish tax authority's reference value for the property exceeds the agreed purchase price, the ITP is calculated on the reference value. This has caused disputes and is an area where legal advice is important — we can check the reference value before you make your offer.

Want to know exactly how much ITP you'll pay before making an offer? Send us the property address and we'll calculate the full cost breakdown — free.

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When Must the ITP Be Paid?

The ITP must be declared and paid within 30 working days of the date of the public deed of sale (escritura) at the notary. Missing this deadline triggers automatic surcharges:

Up to 3 months late: 5% surcharge
3–6 months late: 10% surcharge
6–12 months late: 15% surcharge
Over 12 months late: 20% surcharge + interest

As your lawyer, we file the ITP declaration and arrange payment on your behalf within the deadline — you do not need to handle this yourself.

ITP vs VAT: Which One Applies to You?

The type of tax depends on what you are buying:

Resale property (second-hand): ITP at 7% (Andalucía)
New build from a developer (first sale): VAT at 10% + Stamp Duty (AJD) at 1.2% = effectively 11.2% in Andalucía
Commercial property: VAT at 21% + AJD
Building plot: VAT at 21% + AJD

Some developers sell properties that appear to be resale but are legally a first transfer — always verify with your lawyer before assuming which tax applies.

Other Taxes and Costs at Completion

The ITP is the largest tax cost, but it is not the only one. A complete purchase in Andalucía also involves:

Notary fees: approximately €900–€1,500 (depending on purchase price)
Land Registry fees: approximately €400–€1,000
Legal fees: typically 1% of purchase price
Mortgage arrangement fee (if applicable): 0.5%–1.5% of loan
Property appraisal (tasación, if mortgage): approximately €400–€700

For post-sale ongoing taxes — annual non-resident income tax, IBI, rental income tax and wealth tax — we work alongside our partners at International Tax Legal Spain, who specialise exclusively in non-resident tax compliance.

Can the ITP Be Reduced or Avoided?

In Andalucía, there are reduced ITP rates in specific circumstances:

Purchase by a young person under 35 buying their first habitual residence: 3.5%
Purchase by a person with disability (officially recognised): 3.5%
Purchase of a large family home (familia numerosa) as habitual residence: 3.5%

As a non-resident purchasing a holiday home or investment property, none of these reductions typically apply. The standard 7% rate is what you will pay.

Buying on the Costa del Sol? We calculate your exact ITP liability, file the declaration on time and handle all other purchase taxes. First consultation is free.

ITP Tax When Buying a Resale Property in Spain: What You'll Pay