When purchasing a resale property, you will not be required to pay IVA or IAJD. Instead, you will be liable for a tax called ITP (Impuesto sobre Transmisiones Patrimoniales). ITP is more commonly referred to as ‘Transfer Tax’.
ITP (Transfer Tax)
ITP rates are set by each autonomous community and can vary significantly across Spain. The rates range from 6% to 13%.
Some regions, such as Andalucía, have progressive ITP rates that increase as the property value increases.
The table below lists the General tax ITP for all 17 Autonomous Communities.
Autonomous Region | Property Value (€) | General ITP Rate |
Andalucía | 7% | |
Aragón | <399,999 | 8% |
400,000-450,000 | 8.5% | |
450,000-500,000 | 9% | |
500,000-750,000 | 9.5% | |
>750,000 | 10% | |
Asturias | 0-300,000 | 8% |
300,000-500,000 | 9% | |
>500,000 | 10% | |
Baleares** | <400,000 | 8% |
400,000-600,000 | 9% | |
600,000-1,000,000 | 10% | |
1,000,000-2,000,000 | 12% | |
>2,000,000 | 13% | |
Canarias | 6.5% | |
Cantabria | <120,000 | 8% |
120,000-200,000 | 9% | |
>200,000 | 10% | |
Castilla-La Mancha | 9% | |
Castilla y León | 8% | |
Catalunya | <1,000,000 | 10% |
>1,000,000 | 11% | |
Extremadura | <360,000 | 8% |
360,000-600,000 | 10% | |
>600,000 | 11% | |
Galicia | 8% | |
Madrid | 6% | |
Murcia | 8% | |
Navarra | 6% | |
País Vasco | 7% | |
La Rioja | 7% | |
Valencia | 10% |
*in the Baleares, parking spaces are taxed separately (unless they are attached directly to the property). The rate is 8% for spaces valued below €30,000 and 9% for spaces valued over €30,000
Where taxes are variable, the higher rate is only applicable to the amount that falls within each tax band.
For example, the ITP payable on a property sold in Aragon for €1,000,000 would be as follows:
8% payable on the first €400,000 | €32,000 |
8.5% payable on the value from €400,000 - €450,000 | €4,250 |
9% payable on the value from €450,000 - €500,000 | €4,500 |
9.5% payable on the value from €500,000 - €750,000 | €23,750 |
10% payable on the value above €750,000 | €25,000 |
TOTAL | €89,500 |