ITP (Impuesto de Transmisiones Patrimoniales)
ITP (Impuesto de Transmisiones Patrimoniales) — ITP (Impuesto de Transmisiones Patrimoniales) is the transfer tax paid by the buyer when purchasing a resale (second-hand) property in Spain. It is a regional tax, meaning the rate varies depending on the Autonomous Community where the property is located — from 6% to 11% of the declared purchase price.
ITP is one of the biggest costs when buying property in Spain, yet many foreign buyers are surprised by it because there is no equivalent in many other countries. It applies only to resale properties — if you are buying a new-build directly from a developer, you pay IVA (VAT at 10%) instead. The tax must be paid within 30 days of signing the escritura, and failure to pay on time results in penalties and interest.
ITP Rates by Region (2026)
Each Autonomous Community sets its own ITP rate. Here are some key regions popular with expats:
- Andalusia: 7% (reduced from the previous 8–10% tiered system)
- Valencia: 10%
- Catalonia: 10% (11% for properties over €1 million)
- Madrid: 6%
- Balearic Islands: 8–13% (progressive scale)
- Canary Islands: 6.5%
- Murcia: 8%
Key Facts About ITP
- The buyer always pays ITP — never the seller
- It is calculated on the declared purchase price or the fiscal reference value, whichever is higher
- Spain introduced “fiscal reference values” in 2022 — the tax office may challenge low declarations
- Payment deadline: 30 working days from the date of the escritura
- Reduced rates may apply for young buyers, large families, or people with disabilities (varies by region)
- Garages and storage rooms sold separately from the property may attract a different rate
- ITP receipts are required for registration at the Land Registry
Related Legal Terms
- Escritura Pública (Public Deed)
- Nota Simple (Property Registry Extract)
- Plusvalía Municipal (Municipal Capital Gains Tax)
- Catastro (Cadastral Registry)
- Back to Legal Encyclopedia — A-Z Guide
Need Help with ITP?
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This entry is part of our Legal Encyclopedia for Expats in Spain. Browse the full A-Z guide for more terms.
Aviso legal: Esta informacion se proporciona unicamente a titulo orientativo y no constituye asesoramiento fiscal o legal personalizado. Cada caso debe evaluarse de forma individual segun las circunstancias especificas del cliente. Es imprescindible consultar a un especialista cualificado antes de tomar cualquier decision.
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This content has been prepared with the assistance of artificial intelligence and reviewed by María Luisa de Castro, a lawyer specialising in Real Estate Law and founder of CostaLuz Lawyers.
The information provided is general and indicative in nature. It should not be used as the sole basis for making professional, legal or investment decisions, and CostaLuz Lawyers assumes no responsibility for decisions taken solely on the basis of this content.
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