Andalusia Cuts Property Transfer Tax (ITP): 6.75% from 2027

If you are thinking about buying a resale home on the Costa del Sol, in Granada, Almería or anywhere else in Andalusia, there is good news. In late September 2026, the Junta de Andalucía announced a gradual reduction of the property transfer tax (ITP, Impuesto sobre Transmisiones Patrimoniales), the main tax you pay when you buy a second-hand property in the region.

The general rate, currently 7%, is set to fall to 6.75% in 2027 and then keep dropping by 0.25 points a year until it reaches 6% in 2030. In this article we explain what has been announced, which purchases are affected, how much you could save and what it means for you as a non-resident buyer.

What has the Junta de Andalucía announced?

The measure was presented by Carolina España, the regional Minister of Economy, Finance and European Funds, and will be included in the Andalusian Budget Bill for 2027. The key points are:

• Current rate: a flat 7% on the purchase of resale property. Andalusia introduced this single rate in 2021, replacing the previous progressive scale of 8%, 9% and 10%.
• From 2027: the general rate drops to 6.75%.
• Following years: a further cut of 0.25 points each year, with the goal of reaching 6% by the end of the legislature.
• Estimated beneficiaries: around 138,000 buyers in 2027 from the general rate cut alone, according to the Junta.

This is the planned timeline:

• 2026: 7.00% (current rate)
• 2027: 6.75%
• 2028: 6.50% (planned)
• 2029: 6.25% (planned)
• 2030: 6.00% (planned)

Keep in mind that only the 2027 step is part of a bill so far. The cut still has to be approved by the Andalusian Parliament, and the reductions planned for 2028 to 2030 will depend on future budgets.

Which purchases are affected?

ITP applies when you buy a resale (second-hand) property from a private seller: apartments, villas, townhouses, and also garages or storage rooms bought separately. If you want a refresher on how this tax works, read our guide to Spain's property transfer tax (ITP).

New builds are not affected. When you buy a new property directly from the developer, you pay VAT (IVA) at 10% plus stamp duty (AJD, Actos Jurídicos Documentados), which in Andalusia is generally 1.2%. We compare both options in new builds vs resale properties.

Remember that ITP is not always calculated on the price you pay. The taxable base is the higher of the price in the escritura (the deed signed before the notary) and the valor de referencia published by the Catastro.

What about the reduced rates?

The announcement also raises the property value limits for Andalusia's reduced rates: the 6% reduced rate and the 3.5% super-reduced rate will apply to homes worth up to €200,000 (previously €150,000), and up to €300,000 for large families and people with disabilities.

However, these reduced rates are designed for buying your main home (vivienda habitual) in Andalusia, and in the case of the 3.5% rate, for specific groups such as buyers under 35. A holiday home or an investment property bought by a non-resident generally does not qualify. For most of our clients, the figure that matters is the general rate.

How much could you save?

Here are some examples for a resale property where the taxable base equals the purchase price:

• €200,000 property: €14,000 at 7% vs €13,500 at 6.75%, a saving of €500.
• €300,000 property: €21,000 at 7% vs €20,250 at 6.75%, a saving of €750.
• €500,000 property: €35,000 at 7% vs €33,750 at 6.75%, a saving of €1,250.
• €300,000 property in 2030 (6%): €18,000, a saving of €3,000 compared with today.

ITP is usually the largest single cost when buying a resale home, but it is not the only one. See our breakdown of the full cost of buying property in Spain as a non-resident, including notary, Land Registry and legal fees.

Should you wait to buy?

The rate that applies is the one in force on the date the purchase is completed, normally the day you sign the escritura before the notary, not the date of the reservation or the private purchase contract. If the 2027 Budget is approved on time, a completion in December 2026 would pay 7%, while one in January 2027 would pay 6.75%.

That said, each 0.25-point cut saves €250 for every €100,000 of taxable base. In most cases, the evolution of property prices, the availability of the right home and your mortgage conditions will weigh much more than the tax difference. If your completion date falls close to the turn of the year, it is worth discussing the timing with your lawyer, but the ITP cut alone is rarely a reason to delay a good purchase.

Your tax obligations as a non-resident buyer

Paying ITP is only the start. As a non-resident owner, these are the other obligations you should have on your radar:

The 3% withholding if the seller is a non-resident

If you buy from a seller who is not tax resident in Spain, you must withhold 3% of the price and pay it to the Agencia Tributaria using Modelo 211. We explain how it works in the 3% withholding on the purchase price.

Your first Modelo 210 after buying

From the moment you own the property, you have to file Modelo 210 every year: for imputed income if you use it yourself or leave it empty, and for rental income if you rent it out. Our guide to your first Modelo 210 after buying a property walks you through it, and you can file your imputed income tax with IberianTax in a few minutes.

The ITP you pay counts when you sell

The ITP paid on the purchase is part of your acquisition cost, so it reduces your taxable capital gain when you sell. Keep your Modelo 600 payment receipt together with the escritura. When the time comes, you can estimate the result with our capital gains tax calculator and let us handle the capital gains tax filing.

Key takeaways

• Andalusia's general ITP rate will drop from 7% to 6.75% in 2027, with a plan to reach 6% by 2030.
• The cut applies to resale properties. New builds pay VAT and AJD instead.
• The reduced rates of 6% and 3.5% are linked to buying a main home, so they rarely apply to non-residents.
• The rate is determined by the completion date and the measure still needs parliamentary approval.
• After buying, remember your annual Modelo 210 and keep your ITP receipt for a future sale.

At IberianTax we help non-resident owners stay compliant with their Spanish taxes from day one, with clear prices and no paperwork headaches.

This article reflects the measure announced by the Junta de Andalucía as of 29 September 2026. It is pending approval as part of the 2027 Andalusian Budget, and the final rates and dates may change. This content is for information purposes only and does not constitute tax advice.