The Comprehensive 2026 Guide to Spain’s Property Transfer Tax (ITP)

When buying a resale property in Spain, one of the main costs to consider is the Impuesto de Transmisiones Patrimoniales (ITP), also known as Property Transfer Tax.

This tax applies to both residents and non-residents and can significantly impact the total cost of purchasing property. Understanding how ITP works is essential before completing a transaction.

What Is ITP and Who Pays It?

ITP is a one-time tax applied to the purchase of resale (second-hand) properties in Spain.

• Paid by the buyer, not the seller

• Applies to individuals and companies

• Applies to both residents and non-residents

New-build properties are not subject to ITP.

New Builds vs Resale Properties

• Resale properties → subject to ITP

• New-build properties → subject to:

  • VAT (IVA), typically 10%

  • Stamp Duty (AJD), usually between 0.5% and 1.5% depending on the region

How ITP Is Calculated

ITP is calculated based on the higher of:

• The declared purchase price

• The Valor de Referencia (official reference value used by tax authorities)

Each region sets its own tax rates.

Example

• Purchase price: €250,000

• Valor de Referencia: €260,000

• Applicable rate: 8%

ITP payable: €260,000 × 8% = €20,800

ITP Rates in Spain

ITP rates vary by autonomous community.

• Typically range between 6% and 10%

• Some regions apply flat rates

• Others apply progressive rates based on property value

Because of these differences, the location of the property has a direct impact on the total tax cost.

Important Considerations

Valor de Referencia

The tax authorities may use the Valor de Referencia even if it is higher than your purchase price.

• Buyers can challenge this value, but documentation is required

• It is important to review this before purchase

Regional differences

Each region applies its own rules, rates, and possible reductions.

• Some regions offer reduced rates for specific buyers

• Others apply higher rates for high-value properties

Additional Taxes for Property Owners

Buying a property also means ongoing tax obligations.

Capital gains tax (on sale)

• When you sell, capital gains tax applies

• Current rate: 19% for non-residents

Annual non-resident tax (Modelo 210)

• Required even if the property is not rented

• Rental income must also be declared

Local property tax (IBI)

• Paid annually to the local town hall

• Based on cadastral value

• Does not require filing, only payment

Wealth tax

• May apply depending on total asset value

• Applies only to Spanish assets for non-residents

Why This Matters

• ITP is one of the largest upfront costs when buying property

• Regional differences can significantly change total cost

• Incorrect valuation can lead to additional tax assessments

• Proper planning helps avoid unexpected liabilities

How Taxadora Helps

Taxadora does not handle the purchase transaction itself, but supports you after acquisition by:

• Filing Modelo 210 (non-resident tax)

• Ensuring compliance for rental or non-rental use

• Advising on ongoing tax obligations

• Assisting with corrections or missed filings

We help you stay compliant once you own property in Spain.

Final Thoughts

ITP is a key cost when purchasing resale property in Spain and should always be factored into your budget.

Because rates vary by region and valuation rules can affect the final tax amount, understanding the basics before buying is essential.

Once you own property, ongoing tax compliance becomes just as important.

Taxadora can help you manage your tax obligations so you can focus on enjoying your property.