Impuesto sobre Transmisiones Patrimoniales (ITP)

Understanding ITP: A Guide to Property Transfer Tax in Andalucia

The Impuesto sobre Transmisiones Patrimoniales (ITP), also known as Transfer Tax, is a levy imposed on the transfer of ownership of real estate in Spain. This guide provides an overview of ITP in Andalucía, helping you understand your tax obligations when buying or selling a property.

Taxable Event:

ITP applies to various property transfer scenarios, including:

• Purchase of a property: This includes buying a property from a developer, another individual, or a legal entity.
• Inheritance: Acquiring a property through inheritance or a will triggers ITP.
• Gift: Transferring ownership of a property as a gift incurs ITP.

Taxable Base:

The taxable base for ITP in Andalucía is the escritura pública value, which is the value declared in the public deed of sale. This value might be lower than the actual market value of the property.

Tax Rates:

ITP rates in Andalucía vary depending on the type of property and the relationship between the buyer and seller.

Residential Property:

• Direct family members (e.g., parents, children, spouses): 0% to 1% (reduced rate implemented in some municipalities)
• Non-family members: 7% (permanent reduction implemented in 2021)

Commercial Property:

• All buyers: 6%

Calculating ITP:

Here’s how to calculate the ITP:

Example: Imagine you’re buying a residential property from a non-family member for €200,000 in Andalucía (assuming the permanent reduction is applied).

ITP Calculation: €200,000 (escritura pública value) * 7% (tax rate) = €14,000 (ITP amount)

Important Note: It’s crucial to check with the relevant tax authorities or a qualified tax advisor to determine the exact ITP rate applicable to your specific transaction, as there might be exceptions or variations depending on your circumstances.

Payment and Deadlines:

ITP must be paid within 30 days of the property transfer date. You can usually pay the tax at your local tax office (Oficina de Gestión Tributaria) using various methods, such as:

• Cash
• Credit card
• Bank transfer

Exemptions and Reductions:

While most property transfers are subject to ITP, there are certain exemptions and reductions available, such as:

• First-time buyers: A reduced ITP rate might be available for first-time buyers of residential property, especially for young people.
• Large families: Discounts might be available for families with multiple children.
• Disabled individuals: Exemptions or reductions might be available for disabled individuals purchasing adapted properties.

Finding Out More:

• Junta de Andalucía website: The official website of the Andalusian government provides detailed information on ITP, including rates, exemptions, and payment procedures:  Junta Andalucía
• Tax Advisor: Consulting a qualified tax advisor can provide personalized guidance on your specific situation and help you determine if you qualify for any exemptions or reductions.
• Spanish Tax Agency (Agencia Tributaria): The Spanish Tax Agency website offers resources on ITP, including forms and payment information: Agencia Tributaria

Disclaimer: The information provided in this guide is for general informational purposes only and does not constitute tax advice. PropertyList.es is not liable for any inaccuracies or omissions in the content.

Additional Considerations:

• It’s important to factor in additional costs associated with property transfer, such as notary fees and land registry fees.
• Consider seeking professional legal and tax advice to ensure a smooth and compliant property transfer in Andalucía.