ITP Property Transfer Tax in Andalusia: The Complete 2026 Guide for Foreign Buyers

What is the ITP?

The ITP (Impuesto sobre Transmisiones Patrimoniales) is the tax payable when purchasing a second-hand (resale) property in Spain. It is the equivalent of Stamp Duty in the UK or Transfer Tax in the US — a one-off payment made by the buyer at the time of purchase.

Unlike VAT, which applies to new-build properties purchased directly from a developer, ITP applies exclusively to resale properties — any property that has had at least one previous owner. You never pay both ITP and VAT on the same transaction.

ITP is a regional tax, meaning each of Spain’s 17 autonomous communities sets its own rate. This is why buying the same property in different regions can mean a difference of €15,000–€20,000 in tax on a €400,000 purchase. Andalusia currently charges a flat rate of 7%, making it one of the most competitive regions in Spain for property buyers.

ITP vs IVA: which applies to your purchase?

This is the most common source of confusion for foreign buyers. The rule is simple:

One important nuance: a property may be marketed as new but legally classified as resale if it has been previously registered or occupied. Always confirm the legal classification before assuming which tax applies — we check this for every client before they sign anything.

How much will you actually pay? Real examples

The ITP is calculated on the taxable base — which is the higher of the purchase price or the Junta de Andalucía’s official reference value (valor de referencia). More on this below. Here are real worked examples:

The cadastral reference value — the trap most buyers don’t see coming

Since January 2022, the Spanish government introduced the valor de referencia catastral (cadastral reference value) as the minimum taxable base for ITP. This is an official valuation published by the Catastro (land registry) for every property in Spain.

The critical point: if you pay less for the property than its reference value, the ITP is still calculated on the reference value — not on what you actually paid.

This catches many foreign buyers off guard, particularly in areas where:

• The seller is motivated and accepts a below-market price
• The property needs significant renovation and the agreed price reflects that
• Reference values have not been updated and are higher than actual market prices

How to check the reference value of a property

You can look up any property’s valor de referencia on the Sede Electrónica del Catastro website (sedecatastro.gob.es) using the property’s cadastral reference number (referencia catastral), which appears on the IBI receipt. We do this check as standard for every client before the purchase contract is signed.

Reduced ITP rates in Andalusia — do you qualify?

Andalusia offers significantly reduced ITP rates for certain buyers. These are not widely advertised and many foreign buyers miss them entirely:

The 30-day deadline — and what happens if you miss it

The Modelo 600 must be filed and the ITP paid within 30 working days of signing the notarial deed of sale (escritura pública). This deadline is automatic — there is no grace period and no reminder from the Junta de Andalucía.

Beyond the financial penalty, there is a practical consequence: without a stamped and filed Modelo 600, the Land Registry will not register the property in your name. Until the property is registered, you are not legally the owner in the eyes of third parties — which creates serious problems if you want to sell, mortgage, or rent the property.

Step-by-step: how the ITP process works

ITP rates across Spain — why Andalusia is competitive

The ITP rate varies dramatically by region. If you are flexible about where in Spain you buy, the tax difference is significant:

Other taxes and costs when buying in Andalusia

The ITP is the biggest cost, but not the only one. Here is the full picture of what you will pay on a resale purchase in Andalusia:

Ongoing taxes after you buy

The ITP is a one-off cost paid at purchase. But as a property owner in Spain — whether resident or non-resident — you also have annual tax obligations:

• IBI (Impuesto sobre Bienes Inmuebles): The annual council tax, paid to the local Ayuntamiento. Typically 0.4–1.1% of the cadastral value — usually a few hundred euros per year on most properties.
• IRNR / Modelo 210 (Non-Resident Income Tax): If you are not a Spanish tax resident, you owe annual tax on imputed income from the property — even if it is empty. Typically 19–24% of 1.1–2% of the cadastral value. See our full guide to non-resident tax.
• Community fees: If the property is in a development with shared facilities, monthly or quarterly community charges apply.
• Basura (rubbish collection): Local municipal charge, typically €100–€300 per year.

Frequently asked questions

Do non-residents pay more ITP than Spanish residents?

No. The ITP rate is the same for everyone — 7% in Andalusia regardless of nationality or residency status. There is no surcharge for foreign buyers. The only difference is that non-residents may not qualify for the habitual residence reduced rates (3.5%) since those require the property to be your primary home in Spain.

Can I reclaim the ITP if the sale falls through after the deed is signed?

Yes, in certain circumstances. If the purchase deed is subsequently annulled by a court, or if specific legal grounds for rescission apply, you can apply for a refund of the ITP paid. The process involves filing a formal request with the Junta de Andalucía within a specific timeframe. We handle these reclaims for clients when relevant.

What if the Junta thinks I paid too little and challenges my valuation?

The Junta de Andalucía has the power to issue a comprobación de valores (valuation check) if it believes the declared price is below the market value of the property. Since the 2022 introduction of the valor de referencia, these challenges have become less common for standard residential purchases — but they can still occur for rural properties, unusual transactions, or where the reference value system does not apply. If you receive one, the response window is typically one month and professional representation is essential.

My purchase contract is in English — is that a problem?

The official escritura signed before the Spanish notary will be in Spanish regardless of what language your preliminary contract is in. If you do not speak Spanish, the notary is required to explain the document to you, which in practice means you should bring a translator or have a Spanish-speaking representative present. We routinely act as representatives for non-Spanish-speaking clients at notary appointments throughout Andalusia.

Does the ITP apply if I buy a property through a Spanish company?

This is a more complex area. Purchasing through a Spanish S.L. company does not exempt you from ITP — the company pays the same 7% on a resale property. However, the ongoing tax treatment of the property differs significantly depending on whether it is held personally or through a company structure. We advise on the most tax-efficient ownership structure before any purchase is made.