Stamp Duty in Spain for UK Buyers: ITP Rates by Region in 2026

Understanding Spanish Property Transfer Tax (ITP)

When you buy a resale property in Spain, you pay a tax called Impuesto de Transmisiones Patrimoniales (ITP). This is the Spanish equivalent of UK Stamp Duty Land Tax (SDLT), but there are crucial differences. The biggest one: ITP rates are set by each autonomous community, so the tax you pay depends entirely on where you buy, not just what you pay.

Unlike the UK where SDLT is a national tax with tiered bands, Spain's ITP is a flat percentage applied to the full purchase price (or the official reference value if higher). There are no bands or thresholds — if the rate is 7%, you pay 7% on the entire declared price from the first euro.

For UK buyers, this is often a surprise. In England, buying a property for £250,000 as your main home incurs zero SDLT. Buy a property for €250,000 in Andalusia and you'll pay €17,500 in ITP. It's a significant cost that must be factored into your budget from day one.

ITP Rates by Autonomous Community in 2026

Here are the standard ITP rates for residential property purchases across Spain's autonomous communities as of 2026. Note that some regions use graduated scales while others apply a flat rate:

Andalusia — 7%

Andalusia dropped its rate from 8-10% (graduated) to a flat 7% in 2021 and has maintained this rate through 2026. This makes the Costa del Sol, Almeria, and other Andalusian hotspots more attractive for buyers. On a €300,000 property, you'll pay €21,000.

Catalonia — Progressive rates (from June 2025)

From June 2025, Catalonia moved from a flat 10% to a progressive rate system. The standard rate starts at 10% for lower-value properties and rises to 13% for properties above €1.5 million, with a 20% surcharge for large holders (10+ properties). On a €400,000 apartment in Barcelona, expect to pay approximately €40,000 in ITP. There is a reduced rate of 5% for properties under €300,000 purchased as a primary residence by buyers under 33.

Valencia (Comunidad Valenciana) — 10% (dropping to 9% from June 2026)

The Valencia region, which includes Alicante, the Costa Blanca, and Valencia city, currently charges a flat 10%, but this is dropping to 9% from June 2026. If you are buying in Valencia in the first half of 2026, you may want to time completion accordingly. On a €250,000 villa at the current 10% rate, that's €25,000 — but at 9%, it would be €22,500, a saving of €2,500.

Balearic Islands (Mallorca, Ibiza, Menorca) — 8% to 13%

The Balearics use a graduated scale that increases with property value:

• Up to €400,000: 8%
• €400,001 to €600,000: 9%
• €600,001 to €1,000,000: 10%
• Over €1,000,000: 13%

For high-value properties in Mallorca or Ibiza, this can result in very substantial tax bills. A €1.5 million finca would incur approximately €155,000 in ITP.

Canary Islands — 6.5%

The Canary Islands apply a 6.5% flat rate, one of the lowest in Spain. Combined with the islands' special tax regime (IGIC instead of IVA on new builds at 7%), the Canaries remain one of the most tax-friendly locations for property buyers.

Murcia — 8%

The Region of Murcia charges a flat 8% rate. Given the relatively lower property prices along the Costa Calida compared to neighbouring Valencia, the overall tax cost is often manageable.

Madrid — 6%

The Community of Madrid applies the lowest flat rate in mainland Spain at 6%. This has been a deliberate policy to attract investment and makes Madrid competitive for property purchases.

Other Notable Regions

• Galicia: 9% (reduced from 10% in 2024)
• Asturias: 8% standard
• Castilla y León: 8%
• Castilla-La Mancha: 9%
• Aragón: 8% (up to €400,000), 10% above
• Basque Country: 4% (Álava), 7% (Guipúzcoa, Vizcaya) — among the lowest

New Build Properties: IVA + AJD Instead of ITP

If you buy a new-build property (primera transmisión — first sale from the developer), you don't pay ITP. Instead, you pay two different taxes:

• IVA (VAT): 10% of the purchase price on mainland Spain (7% IGIC in the Canary Islands)
• AJD (Actos Jurídicos Documentados — Stamp Duty): 1.2% in most regions (ranges from 0.5% to 2% depending on the community)

So on a new-build apartment costing €250,000 in Valencia, you'd pay €25,000 IVA + €3,750 AJD (at Valencia's 1.5% rate) = €28,750 total. Compare that with a resale property at 10% ITP = €25,000. New builds are typically slightly more expensive in tax, but you get a brand-new property with a 10-year structural guarantee.

Important: Commercial properties (offices, shops, land) are subject to 21% IVA, not 10%.

How Spanish ITP Compares to UK SDLT

Let's compare the tax burden on equivalent purchases. For a UK buyer purchasing a second home or buy-to-let, UK SDLT includes a 5% surcharge (from October 2024). Spanish ITP has no surcharge for second homes — the rate is the same whether it's your first or fifth property.

Example: €300,000 (approximately £260,000) property

• Andalusia ITP: €21,000 (7%)
• Valencia ITP: €30,000 (10%)
• Madrid ITP: €18,000 (6%)
• UK SDLT (second home): £10,500 (approximately €12,100)
• UK SDLT (main residence): £2,500 (approximately €2,900)

Spanish ITP is almost always higher than UK SDLT, especially for lower-value properties. There's no zero-rate threshold in Spain. However, Spain has no annual council tax equivalent to the UK's — the annual IBI (property tax) is typically €300-€1,500, far less than UK council tax.

When and How You Pay ITP

ITP must be paid within 30 business days of signing the escritura (title deed) at the notary. Here's how the process works in practice:

• Your lawyer prepares the self-assessment tax form (Modelo 600)
• Payment is made to the regional tax authority (Hacienda autonómica), not national government
• Payment can be made at authorised banks or electronically
• You need the stamped Modelo 600 receipt to register the property at the Land Registry

Critical point: If you underpay ITP by declaring a price below the valor de referencia (official reference value set by the Catastro), the tax authority can issue a complementary assessment demanding the difference plus interest. Since 2022, the reference value has been the minimum taxable base in most regions. Your lawyer should check this before completion.

Reduced ITP Rates You May Qualify For

Many autonomous communities offer reduced ITP rates for specific buyer categories. While these are primarily aimed at Spanish residents, some can apply to UK buyers establishing residence:

Young Buyers (Under 35)

Several regions offer reduced rates for buyers under 35 purchasing their primary residence:

• Madrid: No specific youth reduction (already at 6%)
• Catalonia: 5% for buyers under 33 on properties up to €300,000
• Andalusia: 3.5% for buyers under 35 with income under €30,000 and property under €150,000
• Murcia: 3% for buyers under 35 purchasing primary residence

Large Families (Familia Numerosa)

If you have the official título de familia numerosa (available to families with 3+ children), many regions offer rates between 3% and 5%. You'll need to be registered as a large family in Spain, which requires residency.

Disability

Buyers with a recognised disability of 33% or higher often qualify for reduced rates of 3-5% in most regions, provided the property is their primary residence.

VPO (Social Housing)

Properties classified as vivienda de protección oficial (officially protected housing) attract reduced rates of 3-4% in most regions.

Practical Tips for UK Buyers

Here are the key takeaways for managing your ITP costs effectively:

• Budget 10-13% on top of the purchase price for all buying costs. ITP or IVA/AJD is the biggest component, but you'll also pay notary fees (€600-€1,200), Land Registry fees (€400-€700), and legal fees (1% + IVA)
• Check the valor de referencia before making an offer. Your lawyer can look this up on the Sede Electrónica del Catastro. If the reference value is higher than the price you're paying, you'll pay ITP on the reference value
• Don't assume new builds are cheaper on tax. While IVA at 10% may seem comparable to ITP at 10%, the additional AJD of 1-2% makes new builds slightly more expensive in high-ITP regions
• Keep all receipts. ITP paid is a deductible cost when calculating capital gains tax if you later sell the property
• Consider the region carefully. If you're choosing between two similar areas that straddle a regional border (e.g., southern Alicante vs northern Murcia), the 2% ITP difference could save you thousands

Your lawyer will handle the ITP payment process, but understanding the rates and rules helps you budget accurately and avoid nasty surprises at completion.

Challenging a Tax Assessment

If you believe the tax authority has overcharged you — for example, by applying the valor de referencia when you think the true market value is lower — you have the right to challenge the assessment. The process involves filing a reclamación económico-administrativa (administrative economic claim) with the regional tax tribunal within 30 business days of receiving the assessment.

To support your claim, you'll need an independent professional valuation (tasación) from a certified valuer demonstrating that the market value of the property is lower than the reference value. If the tribunal rules in your favour, you'll receive a refund of the overpaid tax plus interest. If they rule against you, you can appeal to the courts (Tribunal Superior de Justicia) within 2 months.

In practice, challenges are worth pursuing when the reference value significantly exceeds the real purchase price — typically when buying distressed properties, properties in poor condition, or properties in areas where the reference value hasn't caught up with market declines. Your tax advisor (asesor fiscal) can assess whether a challenge is likely to succeed. The cost of the professional valuation (€300-€500) can be recovered if the challenge is successful.

Total Buying Costs: A Complete Example

To put ITP in context, here's a complete breakdown of buying costs on a €300,000 resale property in Andalusia in 2026:

• ITP (7%): €21,000
• Notary fees: €900
• Land Registry fees: €550
• Legal fees (1% + 21% IVA): €3,630
• Property survey: €500
• Gestoría (administrative agent): €300
• Total buying costs: approximately €26,880 (8.96% of purchase price)

In higher-ITP regions like Valencia (10%), the same purchase would cost approximately €30,880 in total buying costs (10.3%). In Madrid (6%), it would be closer to €24,880 (8.3%). The ITP rate is by far the largest variable, which is why understanding regional differences is so important for accurate budgeting.