Complete Guide to the Property Transfer Tax (ITP) in Andalusia 2026

If you are thinking of buying a resale property on the Costa del Sol or anywhere in the region, the Property Transfer Tax (ITP) is probably the most important additional expense you should consider.

At Pineapple Homes we know taxation can be a maze. That’s why we have prepared this updated guide so you understand exactly how much you will pay, which allowances you can take advantage of, and what the legal deadlines are in Andalusia.

What is ITP and when does it apply?

ITP is a tax that applies to the purchase of second-hand properties (used homes). Unlike VAT, which applies to new-build homes, ITP falls directly under the authority of the Junta de Andalucía.

It is essential not to confuse it with the Stamp Duty (Documented Legal Acts Tax, AJD), which is usually applied when signing deeds before a notary if mortgages are involved or on new properties.

Rates in Andalusia: How much do you pay?

Andalusia currently has one of the most competitive tax frameworks in Spain for buying property. After recent reforms, the tax rate has been simplified to facilitate access to ownership.

1. General Reduced Rate

Since 2021, Andalusia applies a general tax rate of 7%. Previously, this tax was progressive (8%, 9%, and 10% depending on value), but it is now a fixed rate for most transactions, which represents a direct saving for the buyer.

2. Reduced Rates and Allowances (Special Cases)

There are specific situations where the tax rate drops dramatically to 3.5% or even lower:

• Young people under 35: Provided the property will be their main residence and the value does not exceed €150,000.

• People with disabilities: With a degree of disability equal to or greater than 33%, for main residence up to €250,000.

• Large families: For the purchase of a main residence up to €250,000.

• Victims of gender-based violence or terrorism: Under similar maximum price conditions.

• Municipalities with depopulation problems: Reduced rates to encourage purchases in rural areas.

Important note: To apply these reduced rates, it is essential that the property becomes the buyer’s main residence effectively and permanently.

On what value is ITP calculated?

This is where most mistakes are made. Since January 1, 2022, the taxable base is not necessarily the price you pay for the house, but the Cadastral Reference Value.

• If the sale price is higher than the Reference Value: You pay 7% on the sale price.

• If the Reference Value is higher than the sale price: The tax office will require 7% based on the Reference Value.

It is vital to check this figure on the Cadastral Electronic Office before signing any reservation agreement.

Deadlines and Filing Forms

Do not leave this procedure until the last moment, as delays carry surcharges and late interest.

1. Deadline: You have 30 business days counting from the day after the signing of the public deed.

2. Form: The Model 600 of the Andalusian Tax Agency is used.

3. Where: It can be filed electronically (with a digital certificate) or in person at the tax offices of the Junta de Andalucía.

How to optimize tax payment on your purchase?

Having a real estate agency experienced in the Málaga market is key. At Pineapple Homes we help you to:

• Verify the property’s Cadastral Reference Value.

• Analyze whether you meet the requirements for the 3.5% reduced rate.

• Calculate the total investment budget (including notary, registry and management fees).

If you are looking for transparency and legal certainty in your next investment in Andalusia, we are here to advise you.