Property transfer tax in Spain by region in 2026: where you pay less tax on a flat

The Impuesto de Transmisiones Patrimoniales (ITP, the property transfer tax and the Spanish counterpart of UK stamp duty) is the tax the buyer pays when acquiring a resale (second-hand) property in Spain. It is a tax devolved to the comunidades autónomas (Spain's autonomous regions), which means that each region has the power to set its own rate within the limits laid down by the State. The result is a very wide spread: in 2026, the ITP rate on buying a resale home ranges from 4% in the Basque Country (6% in Madrid, the lowest under the common tax regime, which applies everywhere except the Basque Country and Navarre) to 10% in Catalonia, and higher on the sliding scales for the most expensive homes.

On the purchase of a €200,000 flat, that difference means paying €12,000 in Madrid or €20,000 in Catalonia: a gap of €8,000 in ITP alone. For an investor who makes several deals a year, knowing in which regions the tax cost is lower can be a deciding factor when choosing which market to operate in.

ITP rates by region in 2026

The list below shows the standard ITP rates for purchases of resale homes in each region. Bear in mind that many regions apply reduced rates in certain cases (young buyers under 35, large families, VPO or state-subsidised housing, people with disabilities) that are not included here because they vary so much:

• Madrid: 6% — The lowest rate under the common regime (level with Navarre; only the Basque Country beats it). It is one of the factors that make Madrid particularly attractive for investors who deal in volume, since the tax saving on each deal adds up significantly.
• Navarre: 6% — Navarre's foral regime (its own historic tax system) also sets ITP at 6% as a general rule, matching Madrid.
• Basque Country (Álava, Guipúzcoa, Vizcaya): 4% for buying a home, whether or not it is your main residence, and 2.5% if it will be a main residence of up to 120 m² built area or the buyer is a large family. The 7% rate applies to other properties (commercial premises, plots of land…).
• Canary Islands: 6.5% — This outermost region has a moderate ITP within its separate tax regime.
• La Rioja: 7% standard rate.
• Cantabria: 9% as a general rule (for a main residence, 7% on the first €300,000 since May 2026).
• Asturias: 8%, progressive according to the price (it can reach 10%).
• Castile and León: 8% up to €250,000 and 10% on the excess, with reduced rates for families and young buyers.
• Castilla-La Mancha: 9% standard rate.
• Extremadura: 8% up to €360,000, 10% up to €600,000 and 11% above that.
• Galicia: 8% standard rate since 2024 (7% for a main residence, subject to price and wealth limits).
• Andalusia: 7% — A single rate since 2021 (before that it had a scale from 8% to 10%).
• Murcia: 7.75% standard rate since July 2025.
• Valencian Community: 9% standard rate since June 2026 (previously 10%), and 11% for homes over €1 million.
• Catalonia: 10% up to €600,000; above that, a scale of 11%, 12% and 13% (over €1.5 million) since June 2025, and 20% for large property owners (grandes tenedores). The highest in Spain.
• Balearic Islands: Between 8% and 13% on a progressive scale according to the price: 12% between €1 million and €2 million and 13% above €2 million. Together with Catalonia, the highest for the most valuable transactions.
• Aragon: A scale from 8% (up to €400,000) to 10% (over €750,000).

The real impact for an investor: how much you save in Madrid vs Catalonia

Taking a €300,000 purchase as a reference (a standard investment flat in a large Spanish city), the difference in ITP between the regions at either end of the scale is:

• Madrid (6%): €18,000 in ITP
• Canary Islands (6.5%): €19,500 in ITP (+€1,500)
• Andalusia (7%): €21,000 in ITP (+€3,000)
• Valencian Community (9%): €27,000 in ITP (+€9,000)
• Catalonia (10%): €30,000 in ITP (+€12,000)
• Balearic Islands (8% up to €400,000): €24,000 in ITP (+€6,000)

An investor who makes 3-4 deals a year in the Valencian or Catalan market instead of Madrid's is paying between €27,000 and €48,000 more in ITP alone than they would in Madrid. That difference may or may not offset the higher prices of the Madrid market, depending on the type of property and the return sought, but it certainly deserves a place in the analysis.

Reduced ITP rates: reliefs available to investors

As well as the standard rates, many regions have set reduced rates for specific groups or for certain types of transaction. For an investor, the most relevant are:

• Main residence: Practically every region has reduced rates for buying a first or only main residence. Not directly applicable to an investor, but relevant if the deal is structured as a temporary main residence.
• Reduced rates by price: Some regions (Andalusia, Castile and León, Extremadura) have reduced rates for homes below a certain purchase price (€150,000-200,000). An investor who operates in low-price markets can benefit from those reduced rates.
• Reduced rates for refurbishment: Some regions apply lower rates to the purchase of properties that are going to be refurbished. In Catalonia, for example, there are reduced rates of 4% and 3% for buying old homes in rural municipalities that are renovated to become a main residence.
• Buying properties sold through mortgage enforcement: In some foral territories, purchases at court auction have specific tax regimes that may differ from the standard ITP.

IVA instead of ITP: when it applies and at what rate

ITP only applies to resales (second transfers). On first transfers (buying directly from the developer), the tax that applies is IVA (Spanish VAT):

• IVA at 10% for homes (properties for residential use).
• IVA at 21% for commercial premises, garages not linked to a home and any property that is not a home.
• In the Canary Islands, IGIC (the islands' own indirect tax), at its general rate of 7%, replaces mainland IVA, with reduced rates for a main residence that meets certain requirements.

The distinction between a first and a second transfer is not always obvious. A property that has never been lived in can still count as a “first transfer” (primera transmisión) even years after it was built. And in some cases where a developer sells a property whose use it has changed (commercial premises converted into a home), the regime may be IVA even though it looks like a second transfer. Tax advice is essential in borderline cases.

Other taxes to consider besides ITP

ITP is not the only tax on a purchase. The total tax cost of a purchase includes:

• ITP or IVA (depending on whether it is a first or a second transfer)
• Actos Jurídicos Documentados (AJD, the stamp duty on notarised documents), only when the purchase carries IVA (new-build homes): between 0.75% and 1.5% in the regions under the common regime (0.75% in Madrid, 1.5% in Catalonia; in the Balearic Islands, 2% from €1 million). In the Basque Country the first sale of a home is exempt.
• Notary fees: between €400 and €1,200 depending on the price of the property.
• Land registry fees: between €150 and €600 depending on the price.
• Gestoría fees (the agency that handles the paperwork), if you use one (€100-400).

All these costs on top of the purchase price usually add up to between 7% and 12% of the purchase price, depending on the region. In Madrid, the total cost of a purchase is at the low end (7-8%). In Catalonia, it is at the high end (11-12%).