ITP Tax Spain: Complete Guide 2026
Overview
ITP (Impuesto sobre Transmisiones Patrimoniales) is the transfer tax you pay when buying a resale property in Spain. It's not optional, and getting it wrong can delay or derail your purchase.
Current Rates
In Andalucía, ITP is 7% of the purchase price (reduced from 8% in 2024). Other regions charge different rates: Valencia 10%, Catalonia 10%, Madrid 6%. Always check the current rate for your specific region.
How It's Calculated
ITP is calculated on the higher of: the declared purchase price or the fiscal value (valor fiscal). If you declare €300,000 but the tax office values it at €350,000, you'll pay ITP on €350,000. No shortcuts.
When & How to Pay
You have 30 days from signing the private purchase contract (contrato de arras) to pay ITP. Pay late? Expect penalties of 5-20% plus interest. Your gestor handles the payment - don't try to do it yourself.
Exemptions & Reductions
First-time buyers under 35 in Andalucía may qualify for reduced rates. New builds use VAT (10%) + Stamp Duty (1.2%) instead of ITP. Company purchases have different rules entirely.
Practical Tips
- Budget 10-12% total costs on top of purchase price (ITP + notary + registry + gestor)
- Never declare below market value - the tax office has databases and will catch you
- Use a gestor, not just a lawyer - they specialise in tax paperwork
- Keep all receipts - you'll need them if you sell and want to reduce capital gains tax