The Comprehensive 2025 Guide to Spain’s Property Transfer Tax (ITP)

Buying a resale home in Spain involves navigating the Impuesto de Transmisiones Patrimoniales (ITP)—a regional tax impacting both residents and non-residents alike. In 2025, key updates and regional rate changes make understanding ITP more crucial than ever. Here’s everything you need to know.

What Is ITP and Who Pays It?

• ITP is a one-time property transfer tax applied exclusively to second-hand properties—those sold on the resale market.
• New builds are exempt from ITP and instead subject to VAT (IVA) and stamp duty (AJD).
• The buyer is responsible for paying ITP, not the seller.
  
  

How Is ITP Calculated in 2025?

Spain’s autonomous communities set their own ITP rates, typically ranging from 6% to 10%, though many regions now employ progressive rates for higher-value properties.

• Tax Base: Calculated on the higher of:
  1. The declared purchase price, or
  2. The Valor de Referencia—a reference value by the tax authorities reflecting market data.
     
     

Example Calculation:

• Purchase price: €250,000
• Valor de Referencia: €260,000
• Regional ITP rate: 8%
• ITP due: €260,000 × 8% = €20,800
  
  

2025 Regional Highlights & Rate Changes

Catalonia (Progressive ITP from June 27, 2025)

The region introduced a progressive rate system:

A property valued at €1 million now attracts €105,000 in ITP—compared to €100,000 under previous flat rates.

There’s also a 20% flat rate for large-scale property investors or entire residential buildings.

Andalucía (Flat Rate System)

Andalucía applies a flat 7% ITP rate for all second-hand property purchases, simplifying calculations.

Ibiza and Balearic Islands (Example of Island Rates)

Ibiza employs progressive ITP rates on resale properties:

New Builds vs Resale: Tax Differences

• Resale Properties → ITP applied.
• New Properties → Subject to VAT at 10% + Stamp Duty (AJD) ranging from 0.5% to 1.5%, depending on region.])

Additional Taxes Non-Resident Buyers Should Know

Beyond ITP, non-residents must plan for several other costs when purchasing property:

• National Capital Gains Tax (IRNR): A 3% withholding by the buyer at sale, with personal filing required per Modelo 210. The capital gains tax is 19 % on the profit.
• Annual Imputed Income Tax: Unused properties are subject to imputed income tax via Modelo 210.
  Wealth Tax (Patrimonio): Non-residents pay only on assets in Spain; tax-free exemptions are typically lower.
  
  

These cumulative taxes can push the total tax cost above 8–11% of the purchase price.

Why This Matters for Non-Residents in 2025

• Regional ITP variations and recent tax hikes—especially progressive systems—can significantly increase costs.
• With Catalonia’s new brackets and Andalucía’s flat rate, your location matters more than ever.
• Inaccurate calculations or missed filings can lead to penalties or retroactive debt.
• Proper documentation on Valor de Referencia or purchase value is essential.

How Taxadora Guides Your Purchase—Stress-Free and Strategic

While Taxadora, does not offer a service for purchase transactions, we are happy to help you with your tax obligations in Spain after you have purchased a property. 

• Handling Form Filings: We ensure all required filings (Modelo 210 for IRNR, etc.) are submitted timely.
• Once you have bought a property in Spain you are yearly obliged to file a Non–Resident tax return even if you do not rent your property.
• If you rent your property you are obliged to file a yearly tax return in Spain.
• You also have to pay a local council tax called “IBI” which is different from the Non-Resident tax. The IBI tax does not have to be declared and is usually set on direct debit by the law firm.

Final Takeaway

If you’re buying a second-hand property in Spain—even from abroad—ITP is a key cost you can’t ignore. With region-specific rates and 2025’s updated progressive models, precise calculation and early planning are crucial.

Let Taxadora handle the complexity with Spanish taxes so you can enjoy Spain —stress-free, fully compliant, and tax efficient.