How much is property transfer tax in Spain?
Resale property transfer tax (ITP) in Spain ranges from 6% to 13% depending on the region. Madrid charges a flat 6%, Andalusia 7%, the Canary Islands 6.5%, Valencia and Catalonia 10%, and the Balearic Islands a sliding scale of 8% to 13% by price band. New-build purchases pay 10% VAT plus stamp duty instead.
- ITP is set by the autonomous community where the property is located, not where you live.
- The tax is due within 30 working days of signing at the notary.
- On a €500,000 resale, the tax alone ranges from €30,000 (Madrid) to €50,000 (Catalonia).
Key takeaways
- Resale property pays ITP transfer tax, set by each autonomous community: 6% to 13%.
- Madrid is the cheapest major region at a flat 6%; Catalonia charges 10% (11% above €1m).
- The Balearics use a sliding scale from 8% to 13% depending on the purchase price.
- New-build purchases pay 10% VAT (IVA) plus 1.2–1.5% stamp duty (AJD) instead of ITP.
- Tax is calculated on the higher of the purchase price or the official reference value.
Resale transfer tax (ITP) rates by region — 2026
ITP (Impuesto sobre Transmisiones Patrimoniales) applies to resale property — any second or subsequent sale. Each autonomous community sets its own rate:
| Region | ITP rate (resale) | Tax on €500,000 | Notes |
|---|---|---|---|
| Madrid | 6% flat | €30,000 | Lowest of the major regions |
| Canary Islands | 6.5% flat | €32,500 | Applies to Tenerife, Gran Canaria, Lanzarote |
| Andalusia | 7% flat | €35,000 | Covers Marbella, Málaga, Seville; reduced from a sliding 8–10% in 2021 |
| Valencian Community | 10% flat | €50,000 | Covers Valencia city, Alicante, Costa Blanca |
| Catalonia | 10% (11% above €1m) | €50,000 | Covers Barcelona, Girona, Costa Brava |
| Balearic Islands | 8–13% sliding | €45,000 | Covers Mallorca, Ibiza, Menorca — see band table below |
Rates correct as at September 2026. Regional governments revise ITP in annual budgets — your lawyer confirms the rate in force on your completion date.
Balearic Islands: the sliding scale
The Balearics (Mallorca, Ibiza, Menorca, Formentera) charge ITP in bands, so higher-value purchases pay a blended rate. Each band applies only to the portion of the price within it:
| Price band | Rate on that portion | Cumulative tax at top of band |
|---|---|---|
| Up to €400,000 | 8% | €32,000 |
| €400,001 – €600,000 | 9% | €50,000 |
| €600,001 – €1,000,000 | 10% | €90,000 |
| €1,000,001 – €2,000,000 | 12% | €210,000 |
| Above €2,000,000 | 13% | — |
A €500,000 purchase therefore pays €45,000 (an effective 9%), while a €1.5m Ibiza villa pays €150,000 (an effective 10%). This is why Balearic purchases carry the highest effective transfer tax in Spain at higher price points.
New-build: VAT (IVA) and stamp duty (AJD) instead
First-sale new-build purchases do not pay ITP. Instead you pay 10% IVA (VAT) on the price plus AJD stamp duty, which varies by region:
| Region | IVA | AJD stamp duty | Total on €500,000 |
|---|---|---|---|
| Andalusia | 10% | 1.2% | €56,000 |
| Madrid | 10% | 0.75% | €53,750 |
| Catalonia | 10% | 1.5% | €57,500 |
| Balearic Islands | 10% | 1.2% | €56,000 |
| Canary Islands | 7% IGIC* | 0.75% | €38,750 |
*The Canary Islands levy IGIC at 7% rather than mainland IVA at 10%, making new-build on the islands notably cheaper in tax than on the mainland.
The reference value rule (valor de referencia)
Since 2022, transfer tax is calculated on the higher of the agreed purchase price or the Catastro's official reference value (valor de referencia). If you buy below the reference value — for example at auction — the tax office will assess you on the reference value instead. Your lawyer checks the reference value before you exchange contracts; on most open-market purchases the agreed price is the higher figure and nothing changes.
Worked examples: the same budget, three regions
What a €500,000 resale purchase costs in transfer tax alone:
- Madrid (6%): €30,000
- Marbella, Andalusia (7%): €35,000
- Mallorca, Balearics (8%/9% bands): €45,000
- Barcelona, Catalonia (10%): €50,000
That is a €20,000 swing between the cheapest and most expensive region on the same budget. Add notary, registry, legal and mortgage fees and total purchase costs run 9–14% of the price depending on region — see our full cost of buying guide and cost-to-completion worked budgets.
Why the region matters for your finance
Spanish lenders cap non-resident mortgages at 60–70% of the lower of price or valuation — and the loan never covers purchase taxes. In a high-ITP region your cash requirement rises materially: on a €500,000 Balearic purchase with a 65% mortgage you need roughly €220,000 in cash, versus €205,000 in Madrid. Factor the regional rate into your deposit planning before you agree a price, and your broker can size the facility around the true all-in figure.
Frequently asked
Questions from readers
Which Spanish region has the lowest property transfer tax?
Madrid has the lowest ITP of the major buying regions at a flat 6% on resale property. The Canary Islands follow at 6.5%, then Andalusia at 7%. The Basque Country and Navarra set their own rates separately from the rest of Spain.
Is transfer tax different for non-residents or foreigners?
No. ITP rates are the same for residents and non-residents, Spanish nationals and foreigners. The rate depends solely on the region where the property is located and the price band.
When do I pay ITP and how?
ITP is due within 30 working days of signing the escritura at the notary. Your lawyer or gestor files the return (modelo 600) with the regional tax office and pays it on your behalf from funds you provide at completion.
Do I pay ITP on top of the mortgage amount?
Yes. Transfer tax is charged on the property price (or reference value, if higher), not the mortgage. Lenders do not finance purchase taxes, so ITP must come from your own cash on top of the deposit.
Are there any ITP reductions or exemptions?
Some regions offer reduced rates for first-time resident buyers, large families, young buyers or protected housing — but these almost never apply to non-resident or second-home purchases. Assume the headline rate applies to you.
What is the tax on a €1m property in the Balearics?
On a €1,000,000 resale in Mallorca or Ibiza, ITP is €90,000 — 8% on the first €400,000, 9% on the next €200,000 and 10% on the remainder, an effective rate of 9%.