The Regional Government of Andalusia (Junta de Andalucía) has announced a cut in Property Transfer Tax (Impuesto sobre Transmisiones Patrimoniales, ITP) from 7% to 6.75% in 2027, together with wider access to reduced rates for buyers of a main residence. For now, this is an announced measure pending legislative approval.

The Andalusian Government made the announcement on 24 September 2026 and plans to include the measure in the region’s 2027 Budget. The cut affects the general ITP rate, which applies, among other transactions, to the purchase of resale homes.

What is ITP and which property purchases does it apply to?

Property Transfer Tax (ITP) is a regional tax in Spain that applies, among other transactions, to the purchase of second-hand homes. It is one of the main costs of buying a resale property. New-build homes bought from a developer are, as a general rule, subject to VAT (IVA) rather than ITP.

A gradual reduction of ITP down to 6%

The Andalusian Government intends to keep lowering the general rate by 0.25 percentage points a year until it reaches 6% by the end of the current legislative term:

• 2026: 7% (current rate).
• 2027: 6.75% (announced for the 2027 Budget).
• End of the legislative term: 6% (announced target).

Each future reduction will depend on its own approval.

How much could a buyer save with the ITP cut?

Taking as an example a resale home with a taxable value of €300,000:

More homes will qualify for reduced ITP rates

The Regional Government has also announced changes to the property value limits for applying reduced rates on a main residence:

• Reduced 6% rate and super-reduced 3.5% rate: the value limit for a main residence would rise from €150,000 to €200,000, in the cases provided for by the regulations.
• People with disabilities and large families: the planned limit for the 3.5% rate would rise to €300,000.

These benefits are only available when the legal requirements of each case are met. According to the Junta de Andalucía, the measures will benefit around 146,500 taxpayers.

What does this mean for buyers and real estate professionals?

ITP is a significant cost when buying a resale home in Andalusia and can influence when a buyer decides to complete a purchase. GIPE therefore recommends that real estate agents working in Andalusia:

• Inform buyers about both the possible tax cuts and the conditions attached to them.
• Avoid presenting the announced changes as if they were already in force.
• Check whether the buyer may qualify for reduced rates based on the property value or their personal circumstances.
• Follow the progress of the 2027 Budget before planning transactions around the tax cut.

GIPE members have access to specialist advice to resolve tax questions in their transactions, and to training in real estate taxation as part of their continuing professional development.

Frequently asked questions about ITP in Andalusia

What is the current ITP rate in Andalusia?

The general rate of Property Transfer Tax (ITP) in Andalusia is 7% in 2026. It applies, among other transactions, to the purchase of resale homes.

When will the ITP rate in Andalusia go down?

The Regional Government of Andalusia has announced that it will include the cut to 6.75% in its 2027 Budget. The measure has been announced but still requires legislative approval, so it is not yet in force.

How much could a buyer save with the ITP cut in Andalusia?

For a home with a taxable value of €300,000, ITP would fall from €21,000 at the 7% rate to €20,250 at 6.75%, a saving of €750. If the rate reached 6%, the saving would be €3,000.

What is the property value limit for the reduced ITP rate in Andalusia?

The Regional Government plans to raise the limit for a main residence from €150,000 to €200,000 to qualify for the reduced 6% rate and, in certain cases, the super-reduced 3.5% rate. For people with disabilities and large families, the planned limit for the 3.5% rate would be €300,000.

Do new-build homes pay ITP in Spain?

As a general rule, no. The purchase of a new-build home from a developer is subject to VAT (IVA), while ITP mainly applies to resale properties.

Keeping track of the measure

GIPE will keep its members informed about the approval and entry into force of these measures and their impact on property transactions. You can read more updates in our news section.

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