ITP Spain (Property Transfer Tax)
ITP is Spain's transfer tax on the purchase of a resale property — the rate is set by each autonomous region individually, so it can differ substantially depending on where the property is located.
How much the rates vary by region
In the Valencia region, following the reform under Ley 5/2025, a tiered rate of 9% applies up to a certain purchase price, rising to 11% on the portion above it. The Canary Islands charge a noticeably lower 6.5% — a meaningful difference worth factoring into any decision between locations within Spain. Other autonomous regions set their own rates again, which can differ from both of these examples.
Why only resale properties are affected
ITP applies exclusively to the purchase of an already existing, resale property — buying a new-build directly from the developer instead triggers VAT (IVA) together with stamp duty (AJD), a different tax regime with its own logic. This new-build versus resale distinction is central to cost planning, not a minor technicality.
Why ITP is often the largest single cost item
For a typical purchase price, ITP frequently exceeds all other closing costs (notary, land registry, tasación) combined — anyone who doesn't budget realistically for the specific region risks a noticeable funding gap right before signing. The exact rate for the relevant region should be confirmed early, not just before the notary appointment.
Related glossary terms
Buying Costs Spain (Gastos de compra)
The Gastos de compra are the total transaction costs in addition to the purchase price: taxes (ITP or IVA), notary, land registry, tasación and, where applicable, a lawyer. They are generally paid from equity.
Escritura
The Escritura pública de compraventa is the notarial deed of sale in Spain. On signing before the notary, ownership passes; it is then registered in the land registry.
Non-Resident Mortgage Spain (Hipoteca no residente)
A Hipoteca no residente is a Spanish property loan for buyers without tax residence in Spain. Banks assess foreign income, employment and country of origin and tend to apply stricter conditions than for residents.
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