When buying a resale property in Spain, ITP (Impuesto sobre Transmisiones Patrimoniales — Property Transfer Tax) is the single largest upfront tax cost for the buyer, ranging from 4% to 13% of the purchase price depending on the autonomous community. In 2026, rates and bonifications have changed in several key regions — including the Valencian Community, Castilla-La Mancha, and Aragon — making this guide essential reading before signing any purchase deed.
ITP vs. VAT: Which Applies to Your Purchase?
| Property Type | Seller | Tax | Rate |
|---|---|---|---|
| New development | Developer / Promoter | VAT (IVA) + AJD (Stamp Duty) | 10% IVA + regional AJD (0.5%–2%) |
| Resale / second-hand | Private individual | ITP | 6%–13% (by region) |
| Commercial property (resale) | Private individual | ITP | Regional rate (often higher) |
Complete ITP Rate Table by Region (2026)
| Autonomous Community | General Rate | Min. Reduced Rate | AJD Rate (2026) | Notes |
|---|---|---|---|---|
| Andalusia | 7% | 3.5% | 1.2% | Flat rate; reduced for youth, large families, disability |
| Aragon | 8%–10% | 4% (projected) | 1.5% | Progressive; bonifications for youth/large families |
| Asturias | 8%–10% | 3% | 1.2% | Progressive by value; VPO 3% |
| Balearic Islands | 8%–13% | 0%–2% | 1.5% | Highest max rate in Spain; 0% for young first buyers |
| Canary Islands | 6.5% | 5% | 1.0% | Low rate; favourable for buyers |
| Cantabria | 9%–10% | 5% | 1.5% | Two-tier rate; reduced for primary residence |
| Castilla-La Mancha | 9% | 3% | 1.25% | NEW: 3% for youth <36 from March 2026 (Ley 1/2026) |
| Castilla y León | 8%–10% | 4% | 1.5% | Reduced for youth, large families, disability |
| Catalonia | 10%–11% | 5% | 1.5% | 20% surcharge for large landlords confirmed 2026 |
| Valencian Community | 9% (from 1 Jun 2026) / 10% until 31 May 2026 / 11% >€1M | 4% | 1.4% (from 1 Jun 2026) | UPDATED: ITP 9% + AJD 1.4% from 1 June 2026 (Ley 5/2025). Wealth Tax exemption rises to €1M. |
| Extremadura | 8%–11% | 4% | 1.5% | Progressive; lower rates for rural and social housing |
| Galicia | 8%–9% | 4% | 1.5% | 7% habitual residence; 4% rural rehab |
| Madrid | 6% | 4% | 0.75% | Lowest rates in mainland Spain; very favourable for buyers |
| Murcia | 8% | 3% | 1.5% | 3% for youth <40 and large families |
| Navarra | 6% | 5% | 0.5% | Foral system; low overall burden |
| La Rioja | 7% | 3% | 1.0% | Competitive flat rate |
| Basque Country | 4%–7% | 2.5% | 0% | Foral system; lowest rates in Spain; AJD = 0% |
| Ceuta | 6% | 6% | 0.5% | Ciudad autónoma; low burden |
| Melilla | 6% | 6% | 0.5% | Ciudad autónoma; low burden |
Valencian Community — Rate Drop to 9% + AJD Reduced from 1 June 2026
The Valencian Community has historically applied a 10% flat rate. From 1 June 2026, the general rate drops to 9% under Ley 5/2025. Properties over €1,000,000 pay 11%. Simultaneously, the AJD (Stamp Duty) rate is also reduced from 1.5% to 1.4% — a combined saving for buyers financing with a mortgage.
Additionally, Ley 5/2025 raises the Wealth Tax exemption in Valencia from €700,000 to €1,000,000 — a significant combined benefit for property buyers in the region. See the Wealth Tax article for full details.
Practical Example: Valencia (Updated)
| Scenario | Pre-June 2026 | From 1 June 2026 | Saving |
|---|---|---|---|
| Property price | €350,000 | €350,000 | — |
| ITP rate | 10% | 9% | 1 percentage point |
| ITP amount | €35,000 | €31,500 | €3,500 |
| Mortgage (€280,000) AJD rate | 1.5% | 1.4% | 0.1 pp |
| AJD amount | €4,200 | €3,920 | €280 |
| TOTAL ITP + AJD | €39,200 | €35,420 | €3,780 TOTAL SAVING |
Key Rules for International Buyers
- ITP is paid by the buyer, never the seller. Filed via Form 600 to the autonomous community tax authority within 30 working days of signing the purchase deed.
- Deadline: 30 working days. Surcharges: 5% (up to 3 months late), 10% (3–6 months), 15% (6–12 months), 20% (beyond 12 months).
- Non-residents can access reduced rates. Most regional bonifications are based on buyer circumstances, not residency.
- Reference Value cannot be challenged by paying less. Tax is calculated on the higher of purchase price and Reference Value. Challenge via tasación pericial contradictoria.
- AJD is separate from ITP. AJD applies to mortgage deeds. Rates range from 0% (Basque Country) to 1.4% (Valencia from June 2026).
New in 2026: Key Regional Changes
- Valencian Community: ITP drops from 10% to 9% (from 1 June 2026). AJD reduced from 1.5% to 1.4%. Wealth Tax exemption raised from €700,000 to €1,000,000. Source: Ley 5/2025.
- Castilla-La Mancha: New Ley 1/2026 reduces youth first-home rate from 5% to 3% (from March 2026).
- Aragon: 2026 budget proposals extend youth bonifications to age 36 (previously 35) and raise price ceiling to €225,000.
- Catalonia: Large landlord surcharge (20% on top of general ITP) confirmed for 2026.
Frequently Asked Questions
What is ITP in Spain?
ITP (Impuesto sobre Transmisiones Patrimoniales) is the property transfer tax paid when buying a resale (second-hand) property in Spain. Rates range from 4% to 13% depending on the region.
Who pays ITP — the buyer or the seller?
The buyer pays ITP, always. Filed via Form 600 within 30 working days of signing the purchase deed.
Do non-residents pay ITP in Spain?
Yes. ITP applies to all buyers of resale properties regardless of residency status.
Is ITP the same as VAT?
No. VAT applies to new-build properties sold by developers (10%). ITP applies to second-hand properties from private individuals.
What is AJD and do I need to pay it?
AJD (Stamp Duty) applies mainly to mortgage deeds. Rates range from 0% (Basque Country) to 1.4% (Valencia from 1 June 2026).
Which region in Spain has the lowest ITP?
Basque Country: 4% on residential + 0% AJD. Among mainland Spain, Madrid (6%) is most competitive.
Which region has the highest ITP?
Balearic Islands (up to 13% for properties over €2M). On mainland Spain, Catalonia applies up to 11% plus a 20% surcharge for large landlords.
Did Valencia really reduce its ITP in 2026?
Yes. Ley 5/2025 reduces the general ITP rate from 10% to 9% and the AJD from 1.5% to 1.4%, both effective from 1 June 2026. The Wealth Tax exemption also rises to €1,000,000.
Request Your Free Property Purchase Tax Assessment
Lextax manages ITP calculation, Form 600 filing, AJD coordination, Reference Value challenges, and post-purchase annual compliance (Form 210, IBI, Wealth Tax) for international clients worldwide.
