Spain’s Supreme Court draws the line: Tax authorities cannot charge different ITP amounts to joint buyers of the same property

Good news for anyone buying property jointly in Spain.

The Spanish Supreme Court has issued a landmark ruling confirming that the Tax Authorities cannot apply different property values—and therefore different amounts of Property Transfer Tax (ITP)—to co-buyers of the same property. This is not a minor technical issue, but a matter of basic tax fairness.

What has the Supreme Court ruled?

In its judgment of 9 December, the Court has established binding case law, stating that:

“It is not permissible to establish different taxable bases for the undivided shares of the same asset acquired in a single transaction.”

Put simply: half of a property cannot be worth one amount for one buyer and a different amount for the other, when both acquired the same property, at the same time, under the same deed.

The case: same property, different tax bills

The facts clearly illustrate the problem:

• A couple purchased a property 50/50 in 2015.
• Both applied the reduced ITP rate of 3.5% available in Andalusia at the time (buyers under 35, main residence, purchase price below €130,000).
• The Tax Authorities only reviewed the declared value of one buyer, increasing his taxable base from €36,000 to €47,910.
• The other buyer was not subject to any value check, and was allowed to pay tax based on €36,000.

Almost four years later, the authorities reopened the case, arguing that the property was not the buyers’ main residence and therefore both should have paid the general ITP rate of 8% instead of the reduced rate.

However, when recalculating the tax:

• One buyer was assessed on €47,910
• The other on €36,000

What did the Supreme Court find unlawful?

The Court was unequivocal:

• This situation breaches the principles of economic capacity and tax justice.
• The Tax Authorities cannot treat joint purchasers of a single property differently.
• It is striking that the administration failed to identify from the outset that two taxpayers were involved in relation to one single asset.
• If a value is determined for one co-owner, that value must apply to all co-owners.

Although Article 134.5 of the Spanish General Tax Law did not apply directly to this case, the Court interpreted it teleologically, emphasising that Spanish law does not allow value assessments that produce different results for the same asset and different taxpayers.

Why is this ruling so important?

Because it establishes a clear and practical rule:

• It protects joint buyers (couples, spouses, family members, investors).
• It limits arbitrary or inconsistent value checks by the Tax Authorities.
• It strengthens legal certainty in property transactions.
• It opens the door to challenging unfair ITP assessments in similar cases.

Our professional recommendation

In property transactions—especially those involving co-ownership, international buyers or complex family structures—it is not enough to simply sign the deed and pay the taxes.

Proper legal and tax planning from the outset can help prevent:

• Inconsistent value assessments
• Retroactive tax reassessments years later
• Surcharges, interest and unnecessary litigation

This is precisely the type of risk that can be avoided through specialised legal advice that complements the conveyancing process, particularly in cross-border contexts.

Contact Us: Free Review of Your Reservation Contract or Private Purchase Agreement

In property transactions—especially those involving co-ownership, international buyers or complex family structures—it is not enough to simply sign the deed and pay the taxes.

Proper legal and tax planning from the outset can help prevent costly mistakes and future disputes.

Contact us for a free review of your reservation contract (contrato de depósito) or private purchase agreement (contrato privado de compraventa), and make sure your interests are protected before you commit.

Reviewed by María de Castro, Abogado no. 2745, Ilustre Colegio de Abogados de Cádiz. CostaLuz Lawyers has supported international buyers since 2006 on EyeonSpain  with guidance and advice on the legal aspects of life in Spain. Included in the lawyers lists of the UK and Ireland embassies. Updated 22 Nov 2025.

María Luisa de Castro’s work, founder of CostaLuz Lawyers, is backed by a strong presence in specialist media and professional directories. Her track record as a Property Law and Consumer Real Estate Law (Derecho de Consumo Inmobiliario) specialist can be seen in her guides for international audiences on Expatra, in her long-running blogs on Spanish off-plan protection and Ley 57/1968 on EyeOnSpain , in her legal analysis for Confilegal and Legal Today, and in her contributions for the Spanish Bar Council (Consejo General de la Abogacía Española) and the Centre for Consumer Studies at the University of Castilla-La Mancha.

Her work is also profiled on international retirement and expat platforms such as Retirement Abroad, and has been highlighted by expat media including The Olive Press News Spain and The Local Spain among other specialist expat and legal forums.

Her legal work has also been featured or referenced in respected international and Spanish media, including The Telegraph, The Times, the BBC, El País and El País English, The Local Spain, The Olive Press and other reputable outlets, particularly in connection with landmark court rulings on Ley 57/1968 and Spanish consumer protection.

CostaLuz Lawyers is also included in the official lists of English-speaking legal professionals for British and Irish nationals in Spain, as compiled by the UK government’s “Spain: list of lawyers” and by the Embassy of Ireland in Spain and its honorary consular network.