Property Transfer Tax (ITP) in Andalusia

Everything you need to know about ITP when buying a home

Property Transfer Tax (ITP) is one of the main costs associated with buying a second-hand home in Andalusia. Understanding how it works, how much you pay and what tax relief is available is key to planning your investment properly.

What is ITP?

ITP is a tax levied on the sale of second-hand homes between private individuals. Unlike new-build properties — which are subject to VAT — this tax is mandatory for most property transactions in the second-hand market and is administered by the Regional Government of Andalusia.

How much ITP is payable in Andalusia?

Currently, Andalusia applies a fixed standard rate of 7% on the value of the property. This value will be the higher of the sale price and the cadastral reference value.

This simplified model replaces the old progressive system, making calculation easier and providing greater transparency for the buyer.

Reduced rates and tax relief

There are significant tax reductions in certain cases, particularly if the property is used as a main residence:

6% for main residences valued at less than €150,000
3.5% for people under 35 with a property valued at less than €150,000, large families or people with disabilities with a property valued at less than €250,000 (subject to specific requirements)
2% in certain circumstances, such as purchase for professional resale

These tax reliefs can result in significant savings, so it is essential to analyse each case individually.

How is the ITP calculated?

The tax is calculated by applying the relevant rate to the taxable base, which will be the higher of:

The price stated in the deed
The reference value in the Land Registry

This means that, even if you buy below market value, the tax may be calculated on a higher value if the tax authorities so determine.

Deadlines and submission

The ITP must be paid within approximately 30 working days to 2 months of the signing of the public deed, using form 600 submitted to the Andalusian Tax Agency.

Failure to meet this deadline may result in surcharges and interest.

A key tax to consider when investing

The ITP is one of the biggest costs involved in buying a home, so calculating it correctly from the outset is essential to avoid surprises and get the most out of your investment.

At our agency, we advise you throughout the entire process, analysing your specific situation to apply any available tax relief and ensure a secure, transparent and well-planned purchase.

Because understanding the details makes the difference between just another purchase… and an excellent investment.

The information contained in this section is provided for information purposes only and may be subject to change due to regulatory amendments. Whilst every effort is made to keep it up to date, its accuracy cannot be guaranteed at all times; therefore, it is recommended that you verify it through official sources or by seeking appropriate professional advice.