The Impuesto sobre Transmisiones Patrimoniales (ITP), or Estate Transfer Tax in French, is a tax that cannot be ignored in the process of buying property in Spain.
It often represents a significant proportion of the total cost of the transaction, reaching up to 11% of the property's value. Knowing this tax is essential to avoid unpleasant financial and legal surprises.

A regional tax

Spain is made up of 17 autonomous communities, each with its own ITP rates. Some regions, such as Madrid and Andalusia, have adopted low rates to attract investors.

Here, in alphabetical order by region, are the ITP rates applicable in 2024.

• Andalusia: 7% of sales
• Aragon: 8% to 10% (progressive rate)
• Asturias: 8% to 10% (progressive rate)
• Balearic Islands: 8% to 13% (progressive rate)
• Canary Islands: 6.5
• Cantabria: 9% of sales
• Castilla-La Mancha: 9
• Castilla y León: 8% to 10% (progressive rate)
• Catalonia: 10% to 11
• Ceuta: 6% of sales
• Community of Madrid: 6
• Valencian Community: 10% to 11
• Extremadura: 8% to 11% (progressive rate)
• Galicia: 8% of sales
• La Rioja: 7%.
• Melilla: 6% of sales
• Murcia: 8% of sales
• Navarre: 6% of sales
• Basque Country: 7% of sales

 These rates may vary from year to year. Find out more before starting your real estate project.

How is ITP calculated?

The ITP is calculated on the reference value of the property, which in 99% of cases corresponds to the sale price. The tax authorities may, however, reassess this value if they consider that the declared price is too low (suspicion of sale containing a portion paid in cash, not declared in the sale price).

Calculation example :

• In Valence: for a property costing €300,000, the ITP is €300,000 x 10% = €30,000.

How do I pay the ITP?

1. Obtain a Numéro d'Identité des Étrangers (NIE).
2. Open a bank account in Spain.
3. Fill in form 600 (available online).
4. Pay within 30 working days of signing the deed of sale.

Penalties apply for late payment: up to 20% for more than 12 months' delay.

Reductions and exemptions

• Buyers under 35 (specific regions).
• Large families.
• People with disabilities.
• Purchase of social housing.

Criteria vary from one Autonomous Community to another. Check the conditions specific to your region of purchase.

What are the consequences of non-compliance?

• Fines of up to 150% of the cost of the work.
• Demolition of unauthorized work.
• Complications when reselling the property.

Don't take unnecessary legal and administrative risks.

 Advice from the experts at Terreta Spain

• Check ITP rates in your area before finalizing your purchase.
• Keep a copy of all documents relating to your purchase.
• Scrupulously respect legal deadlines and formalities.

FAQ : ITP in Spain

What is ITP and to whom does it apply?

ITP is a regional tax in Spain, applicable to the purchase of second-hand property. Rates vary from region to region.

How is ITP calculated?

By applying the regional rate to the property's reference value.

How long does it take to pay ITP?

Payment must be made within 30 working days of signing the deed of sale.