SOBE Knowledge
What Is ITP? Spain’s Property Transfer Tax
The tax a buyer pays on a resale home — a flat 7% in Andalucía, charged on the price or the cadastral valor de referencia, whichever is higher.
What it is
ITP — Impuesto sobre Transmisiones Patrimoniales — is the tax a buyer pays on a resale home in Spain, triggered at completion and self-assessed afterwards.
In Andalucía it is a flat 7%, charged to the buyer regardless of price bracket (aside from two reduced rates covered below). It generally applies to previously-owned property — a first sale from a developer is taxed differently, under IVA and AJD instead of ITP.
ITP is set regionally, so this 7% is specific to Andalucía — other Spanish autonomous communities set their own rate.
Price vs valor de referencia
ITP is not simply 7% of the price written into the escritura. Spain's Cadastre (Catastro) assigns every property an annually updated valor de referencia, and the tax office charges 7% on whichever figure is higher.
ITP due = 7% × MAX( purchase price , valor de referencia ) Most of the time the two sit close together and the price wins. But on undervalued or long-held properties, the valor de referencia can land meaningfully above the agreed price — and the buyer pays tax on the higher number, regardless of what actually changed hands.
Worked example
Take a resale apartment agreed at €500,000.
In the second scenario, ITP is charged on €540,000 even though only €500,000 changed hands. This is why a buyer's lawyer normally checks the valor de referencia before the arras is signed, so the real number is known in advance rather than discovered at the notary.
Run your own price through it
SOBE Purchase Tax Calculator
Enter your price and we estimate ITP, notary, registry and legal fees together — the full acquisition cost, not just the headline rate.
Reduced rates in Andalucía
The general 7% drops for a habitual residence under set price limits — declared in the filing itself, not applied automatically by the notary.
| Rate | Who qualifies | Maximum value |
|---|---|---|
| 6% | Any habitual residence purchase | €150,000 |
| 3.5% | Buyer under 35, victim of domestic violence or terrorism, or a qualifying depopulated municipality | €150,000 |
| 3.5% | Recognised disability (33% or more) or member of a large family | €250,000 |
How it is paid
ITP is self-assessed, not billed. Within two months from the day after signing the escritura, the buyer — usually through their gestoría or lawyer — files Modelo 600 and pays directly.
How it surprises
1. Budgeting the price, not the valor. ITP due can exceed 7% of the agreed price if the valor de referencia is higher — worth checking before the arras, not after.
2. Confusing ITP with IVA. The two are mutually exclusive in the ordinary case: one for resale, one for new build, not both on the same purchase.
3. Forgetting it sits on top. ITP is paid alongside notary, registry and legal fees, not instead of them — a resale purchase in Andalucía typically runs 9–11% above the price once every cost is counted.
Frequently asked questions
How much is ITP in Andalucia in 2026?
A flat 7% of the taxable base for resale property - the base being the higher of the purchase price and the valor de referencia. A 6% rate applies to a habitual residence valued at no more than 150,000 euros. The 3.5% rate applies to certain qualifying buyers, generally within a 150,000-euro limit, while disability and large-family cases may qualify up to 250,000 euros.
When and how is ITP paid?
Self-assessed on Modelo 600 within two months from the day after the escritura. In practice it is usually filed promptly after completion, because the Property Registry will not register the title until the tax filing has been completed.
What if I bought below the valor de referencia?
Tax is still due on the valor de referencia - the higher of the two figures. Your lawyer can challenge an unrealistic valor with a professional appraisal, but the tax is paid first and contested second.
Do new-build properties pay ITP?
No. A first transmission from a developer carries IVA at 10% plus AJD stamp duty at 1.2% instead. A property pays one regime or the other, not typically both.
Is ITP included in the mortgage?
No. Spanish banks lend against the property value, and ITP - like notary, registry and legal fees - is paid from your own funds on top. Budget roughly 9-11% above the price for a resale in Andalucia.