ITP Property Tax in Andalucía: What Buyers Must Know in 2025

If you're buying a resale property in Spain—especially in popular destinations like Estepona or the New Golden Mile—understanding the ITP Property Tax in Andalucia is essential. This guide covers how it works, when it applies, how much you’ll pay, and what risks buyers need to watch out for.

The ITP (Impuesto de Transmisiones Patrimoniales) is a tax paid by the buyer when purchasing a resale property in Spain. Unlike new builds, which are taxed under VAT, resale properties are subject to ITP, a regional tax calculated based on the property’s value.

Buyers must pay the ITP within 30 working days of signing the public deed of sale (escritura pública) at the notary. Payment is made through the regional tax office using the official forms. Failure to pay on time can result in penalties and interest charges.

Since 2021, the autonomous community of Andalucía applies a flat ITP rate of 7% for all resale property transactions, replacing the old progressive structure.

• Declared Purchase Price: €800,000
• ITP (7%): €56,000
• Total Cost (excluding legal fees): €856,000

This fixed rate makes Andalucía one of the most tax-friendly regions for buying resale properties in Spain.

A common issue in Spanish real estate transactions is the value check by Hacienda (the tax agency). If they believe the purchase price you declared is too low, they may issue a supplementary tax demand based on a higher “reference value” of the property.

• Declared Price: €500,000
• Hacienda Value: €600,000
• Revised ITP: 7% of €600,000 = €42,000 (instead of €35,000)
• You must pay the difference or file an appeal

Tip: Your lawyer or advisor can pre-check the "valor de referencia" to anticipate and avoid such issues.

If you’re buying a brand-new property (first ownership from a developer), ITP does not apply. Instead, buyers pay:

• 10% VAT (IVA)
• 1.2% Stamp Duty (AJD) in Andalucía

The total acquisition tax for new builds is 11.2%, making resale properties potentially more cost-effective for some buyers.

In addition to ITP Property Tax in Andalucia, buyers should budget for:

• Legal fees (~1% + VAT)
• Notary and land registry fees (~0.25%)
• Bank transfer or mortgage setup costs
• Optional technical inspection or property valuation

If you delay payment or underdeclare the property’s value:

• Late payment penalties and interest charges apply
• It may delay the registration of your ownership at the Land Registry
• Hacienda can audit and request documentation

Always use a qualified real estate lawyer to handle your tax filings and protect your interests.

Who pays the ITP property tax in Andalucía?
The buyer always pays the ITP on resale property purchases.

Do non-residents pay a higher ITP?
No. The 7% rate applies to residents and non-residents alike.

Can I finance the ITP with my mortgage?
No. This tax must be paid in cash, separate from your mortgage funds.

Can I appeal if Hacienda overvalues my property?
Yes, but you must present strong documentation. Legal support is recommended.

At Livingstone Estates, we assist buyers with every step of the purchase process—from negotiating prices to calculating ITP, checking property valuations, and managing legal compliance.

If you're planning to buy a luxury property in Estepona or along the New Golden Mile, our team will ensure the process is smooth, secure, and tax-efficient.

Need help understanding your tax obligations when buying in Spain?

Email: info@livingstone-estates.com
Phone: +34 952 806 417
Website: www.livingstone-estates.com

Read more about property-related taxes in Estepona on our website.

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