Property purchase tax rates in Spain

When buying a property in Spain, the purchaser will need to pay the property purchase tax (a bit like the UK’s Stamp Duty Land Tax).

In Spain property purchase tax is known as Impuesto sobre Transmisiones Patrimoniales (ITP). The rate of Spanish property purchase tax varies from region to region as Spain is governed by 17 autonomous regions, which each set the tax rates for that area.

Spain’s 17 autonomous regions

 

Spain's 17 autonomous regions

 

The rate of Spain’s equivalent of Stamp Duty Land Tax currently varies between 6%-11% depending on where in Spain the property is located. If you’re buying a property in Alicante for example, which is in the Valencia region of Spain you can expect to pay ITP at a rate at 10%, whereas buying in Madrid the purchase tax is currently set at 6%.

In some areas the rate of ITP varies depending in the price of the property. So in the Balearic islands such as Ibiza and Mallorca, and the Andalusia region (which includes Malaga, Marbella and Seville) the ITP rate gets increasingly higher as the value of the property increases.

In the regions in Spain where the ITP varies depending on the value of the property, such as the Balearic Islands and Andalusia, ITP tax is accumulative. So, for example if you were buying a property worth €800,000 in the Balearic Islands you would pay 8% ITP on the first €400,000, 9% ITP on the next €200,000 and 10% ITP on the remaining €200,000.

It’s important to note that the amount of purchase tax payable on Spanish property is calculated by applying the tax rate that applied to properties in that region to the ‘cadastral value’ of the property, not necessarily the market price. The cadastral value is set by the local Town Hall.

If you’re buying a new build property directly from the developer, you will not need to pay ITP, but you will have to pay IVA (VAT) at 10% instead of paying the usual property transfer tax. In the Canary Islands, VAT is called Impuesto General Indirecto Canario (IGIC), and is currently 4.5%.

To help you understand what the rate of property purchase tax in Spain in your chosen area, we have created a handy table of the ITP tax rates in Spain by region!

Impuesto sobre Transmisiones Patrimoniales (ITP) rate in Spain’s autonomous regions
Andalusia
(this area includes the Costa del Sol, Marbella, Malaga, Almeria)
8% - For properties up to €400,000
9% - For properties from €400,000.01 to €700,000
10% - For properties more than €700,000.01
Aragon7%
Asturias8-10%
Balearic Islands
(this includes Ibiza, Mallorca, Menorca)
8% - For properties up to €400,000
9% - For properties up €400,000.01-€600,000
10% - For properties more than €600,000.01
Basque Country

Álava
Biscay
Gipuzkoa


6%
6%
7%
Canary Islands
(including Tenerife, Lanzarote, Fuerteventura, Gran Canaria)
6.5%
Cantabria8%
Castile and León7%
Castilla-La Mancha8%
Catalonia
(this includes Barcelona, Tarragona, the Costa Brava)
10%
Extremadura8%, 10% or 11%
Galicia7%
La Rioja7%
Madrid6%
Murcia7%
Navarra6%
Valencian Community
(this includes the Costa Blanca, Torrevieja, Alicante, Valencia)
10%

For more advice on buying a property in Spain contact us today on 01244 478911 or email info@totalbuyingabroad.com to find out how we can help you buy property in Spain safely and efficiently.

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Article published: October 29, 2018