ITP transfer tax rates in Spain vary dramatically by region—from 6% in Madrid to 11% in Valencia for high-value properties. Understanding these regional differences is essential for budgeting accurately when buying Spanish property.
16 April 2026
When you buy a resale property in Spain, the Impuesto sobre Transmisiones Patrimoniales (ITP) — property transfer tax — will be one of your largest costs. But there is no single Spanish ITP rate. Each of Spain's 17 autonomous communities sets its own rate, and the difference between the cheapest and most expensive regions can cost you €15,000 or more on a €300,000 property. This guide provides the actual 2026 ITP rate for every Spanish region, explains progressive versus flat structures, covers the Valencia reduction from June 2026 under Ley 5/2025, and clarifies whether your nationality affects what you pay.
ITP rates across Spain's 17 autonomous communities range from 6% to 13%, with significant variation in structure. Here are the current rates:
Flat Rate Regions:
Progressive Rate Regions:
The tax base is the higher of the purchase price or the cadastral reference value.
Valencia's regional government passed Ley 5/2025, de 30 de mayo, introducing significant tax changes. The most relevant for property buyers:
From 1 June 2026, the general ITP rate for property purchases reduces from 10% to 9%. This applies to properties valued under €1 million. Properties over €1 million remain taxed at 11%.
What this means in practice: If you complete your purchase on 31 May 2026, you pay 10%. If you complete on 1 June 2026 or later, you pay 9% (assuming the property is under €1 million). The reduction only applies to purchases from 1 June 2026 onwards — purchases before this date are taxed at the current 10% rate.
Reduced rates for buyers under 35 and vulnerable groups (6%) remain in place. The 9% rate is the new general rate for standard buyers.
Stamp duty also reduced: AJD (stamp duty on new builds) reduces from 1.5% to 1.4% from 1 June 2026.
Spanish regions use two ITP models:
Flat rate: One percentage applied to the entire property value. Andalucía applies a flat 7% rate, making calculations simple. Madrid (6%), Murcia (7.75%), and Galicia (8%) also use flat rates.
Progressive rate: Different percentages apply to value brackets. Catalonia introduced progressive brackets from June 2025, similar to income tax, with fixed percentages for the first portion of value and higher percentages on excess amounts. The new Catalan brackets apply progressively, not on the total value, meaning a €650,000 property isn't taxed at one flat rate—portions of its value are taxed at different rates.
Buyers in progressive-rate regions like Catalonia, the Balearic Islands, and Extremadura pay lower rates on the first portion of value, then higher rates as property value increases. Catalonia uses a progressive ITP system for residential resale properties, making it one of Spain's most expensive regions.
Why it matters: A €300,000 property in Madrid (flat 6%) costs €18,000 in ITP. The same property in Catalonia (progressive 10-11%) would cost approximately €30,000—a €12,000 difference purely based on location.
Short answer: No. ITP is set by the region based on the property and transaction, not on your residency status. Non-residents generally pay the same rate as residents for the same property type and circumstances.
Whether you are British, German, Dutch, Spanish, EU, or non-EU makes no difference to the ITP rate you pay. A British non-resident buying in Andalucía pays 7%, exactly the same as a Spanish resident.
However: Many regions apply lower rates in certain circumstances, such as for first-time buyers, buyers under 35, or buyers with disabilities—typically 4-5%—but these reduced rates are always for residents in Spain and do not apply to non-residents.
If you are a non-resident, you pay the standard regional rate with no reductions, regardless of nationality.
Spain's government announced plans for a 100% tax on properties bought by non-EU residents in January 2025. Here is what we know:
What was proposed: A draft bill submitted to Parliament in May 2025 proposes a 100% surcharge on the Transfer Tax (ITP) for second-hand home purchases made by non-EU, non-resident individuals. This means buyers would effectively pay double the usual ITP, not double the full property price.
Who would be affected: Non-EU and non-EEA residents, including buyers from the United Kingdom, United States, Canada, China, Latin America, and the Middle East. EU citizens and UK nationals with Spanish residence permits are exempt.
What is exempt: The tax applies only to resale properties; new builds subject to VAT are excluded.
Current status: At the time of writing, this is not law in Spain. The bill faces potential legal challenges and significant political hurdles due to the minority status of Sánchez's government. Legal experts anticipate challenges on EU law grounds, particularly free movement of capital principles, and Spanish constitutional grounds, as a 100% tax rate could be argued to be confiscatory. Baker McKenzie stated the proposal is unlikely to survive legal scrutiny in its current form.
Practical impact: The proposal may never become law. If you are a non-EU buyer, monitor developments but do not panic. Consult your lawyer for specific advice.
Let's calculate the exact ITP for a €300,000 resale property in three regions:
Valencia (until 31 May 2026): €300,000 × 10% = €30,000
Valencia (from 1 June 2026): €300,000 × 9% = €27,000 (Saving: €3,000 compared to current rate)
Madrid: €300,000 × 6% = €18,000
Andalucía: €300,000 × 7% = €21,000
Summary:
The difference between Madrid and Valencia is €9,000 (€12,000 before the reduction). This is purely a regional tax difference on an identical property value. Add notary fees (€600-€900), land registry (€400-€600), and legal fees (typically 1% + VAT), and your total purchase costs in Madrid would be approximately 10-11% of the property price, versus 12-13% in Valencia.
Top 3 Mistakes Foreign Buyers Make:
Budgeting based on the purchase price alone — ITP, notary, registry, and legal fees add 10-15% to the property price. Budget €330,000-€345,000 for a €300,000 property.
Assuming ITP is the same nationwide — The €12,000 difference between Madrid and Valencia on a €300,000 property is significant. Factor regional rates into location decisions.
Not understanding that non-residents rarely qualify for reduced rates — If you see "4% ITP for under-35s," this almost certainly requires Spanish residency. Non-residents pay the standard rate.
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