Property transfer tax in Andalusia: the 2027 cut explained
The Andalusian government has confirmed it: ITP, the main tax you pay when you buy a resale home in Andalusia, is set to drop from 7% to 6.75% on 1 January 2027. And that is only the first step, because the regional government wants to bring it down to 6% by 2030. So how much will you actually save on the Costa del Sol, in Malaga or in Seville? And should you wait until January to sign? Here is the full picture, with real numbers.
Today, ITP in Andalusia is 7% on resale homes. The 2027 budget bill, approved by the Andalusian government on 30 October 2026, cuts it to 6.75% from 1 January 2027, then by 0.25 points a year down to 6% by the end of the term. On a €300,000 home, you save €750 in 2027. What counts is the date you sign the deed at the notary, not the date of the deposit contract. The regional parliament still has to vote the budget before the end of the year. New builds are not affected: they pay VAT instead.
What is ITP?
ITP (Impuesto sobre Transmisiones Patrimoniales) is the transfer tax the buyer pays when purchasing a resale property, meaning one sold by a private owner. Each Spanish region sets its own rate, and in Andalusia it is collected by the regional tax agency through form 600 (modelo 600).
It is by far the biggest item in your buying costs on a resale home. On a €300,000 apartment in Marbella or Fuengirola, that is €21,000 today. Every fraction of a point matters. For the full breakdown of fees, see our guide to purchase costs in Spain.
Quick reminder: if you buy a new build directly from a developer, you don't pay ITP at all. You pay 10% VAT plus stamp duty (AJD), which is 1.2% in Andalusia. The cut we are talking about here doesn't change anything for you. Our overview of property taxes in Spain covers both cases.
What the Andalusian government announced for 2027
The measure was first announced in late September 2026 by Carolina España, the regional minister for the Economy and Finance. It was confirmed on 30 October 2026, when the Andalusian government approved its 2027 budget bill. Three changes matter to buyers:
| Measure | Today (2026) | From 2027 |
|---|---|---|
| General ITP rate (resale homes) | 7% | 6.75% |
| Price cap for reduced rates | €150,000 | €200,000 |
| Announced path | Down 0.25 points a year, to 6% by the end of the term (2030) | |
Where things stand: the bill now goes to the Andalusian parliament, with a first debate scheduled for 11 November and a final vote expected before the end of the year. The parties backing the government have the votes they need, so approval is very likely. But until the law is published in the official gazette (BOJA), 6.75% remains a bill, not a rule.
How we know: the figures in this article come from the 2027 budget bill approved by the Andalusian Council of Government on 30 October 2026 and from statements by regional minister Carolina España, reported by the Spanish business press. We will update this article as soon as the final law is published.
How much will you save?
A quarter of a point doesn't sound like much. Here is what it means on typical budgets:
| Property price | ITP 2026 (7%) | ITP 2027 (6.75%) | Saving in 2027 | If 6% in 2030 |
|---|---|---|---|---|
| €200,000 | €14,000 | €13,500 | €500 | €2,000 |
| €300,000 | €21,000 | €20,250 | €750 | €3,000 |
| €400,000 | €28,000 | €27,000 | €1,000 | €4,000 |
| €500,000 | €35,000 | €33,750 | €1,250 | €5,000 |
| €750,000 | €52,500 | €50,625 | €1,875 | €7,500 |
Worth knowing: Andalusia applies a single flat rate with no brackets. Whether you buy a studio in Torremolinos or a villa in Estepona, the percentage is the same. Some regions go much higher: in the Valencia region, ITP is 9% and climbs to 11% above €1 million. At 6.75% in 2027, Andalusia stays one of the cheapest regions in Spain to buy a resale home.
UK and other non-EU buyers: does the cut apply to you?
Yes. The general rate applies to every buyer, whatever their nationality or country of residence. Since Brexit, British buyers are treated as non-EU buyers in Spain, but that changes nothing for ITP: you will pay 6.75% from 2027, exactly like a Spanish buyer purchasing a second home.
For UK buyers specifically: the reduced rates described below require the property to become your main residence in Spain, which in practice means being a Spanish tax resident with the right visa (non-lucrative visa, digital nomad visa, work permit, etc.). If you are buying a holiday home and staying under the 90/180-day rule, plan your budget on the general rate. And remember that as a non-resident owner you will also file the yearly non-resident income tax (IRNR).
Reduced rates, and why they rarely apply to you
Andalusia also has reduced (6%) and super-reduced (3.5%) rates for certain buyers: low-value homes, buyers under 35, large families and people with a recognised disability. In 2027, the price cap that gives access to these rates rises from €150,000 to €200,000, so more buyers will qualify.
The catch: all of them require the home to be your habitual residence. For a holiday home or a buy-to-let, which is the case for most international buyers, the general rate applies: 7% today, 6.75% in 2027. If you are genuinely moving to Andalusia, it is worth checking your eligibility case by case with our legal team. Our guide on living in Spain full time after buying explains the residency side.
Should you wait until January 2027 to sign?
It is the question everyone has been asking since the announcement. First, the rule: the rate that applies is the one in force on the date of the escritura, the final deed signed at the notary. The date of the deposit contract (contrato de arras) doesn't count. A deed signed on 30 December 2026 means 7%. Signed on 4 January 2027, if the law is published in time, it is 6.75%.
Our honest view: don't let the right property go for a few hundred euros. On €300,000, the difference is €750. That is less than what a seller may concede in a negotiation, and far less than what it costs to lose a good property because you waited. On the Costa del Sol, well-located homes sell fast, and waiting often has a price of its own.
On the other hand, if you have already agreed on a property and the completion date naturally falls around the holidays, it is worth checking whether signing can move a few days into January, by mutual agreement with the seller. That is exactly the kind of detail one of our experts checks with our legal team before booking the notary.
Want your exact budget? Our closing cost calculator works out ITP, notary fees and the rest based on the price, the region and the type of property. Free, no sign-up needed.
What is ITP calculated on, and how is it paid?
A point many buyers miss: ITP isn't always calculated on the price you pay. The tax office uses the higher of two figures: the price stated in the deed, or the cadastral reference value set by the administration. If you negotiate a great price but the reference value is higher, the reference value becomes your tax base. Our guide to the cadastral reference explains how it works.
On the admin side, ITP is declared and paid with form 600 to the Andalusian tax agency, within a short deadline after signing. Paying late means surcharges. With SpainEasy, you don't deal with any of it: our legal team prepares and files the return for you, in English from start to finish.
Buying in Andalusia at the right price, and the right rate
General rate, reduced rates, deed date, cadastral reference value: working out your exact ITP means knowing the Andalusian rules. One misjudgement and your budget is off by several thousand euros.
At SpainEasy, we work for you, not for the seller. Our property hunters pre-visit homes for you in Malaga and across the Costa del Sol, send you videos, then organise viewings when you come over. Our legal team checks the property when you are ready to commit, and we support you all the way to the notary, taxes included, with one point of contact. See how we work.
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FAQ: property transfer tax in Andalusia
What is the ITP rate in Andalusia in 2026?
The general rate is 7% on resale homes, with no brackets based on price. Reduced rates of 6% and 3.5% exist for some buyers purchasing their main residence.
Is ITP going down in Andalusia in 2027?
Yes, if the Andalusian parliament passes the 2027 budget as planned. The general rate would go from 7% to 6.75% on 1 January 2027, then drop by 0.25 points a year to reach 6% by the end of the term.
I signed a deposit contract in 2026. Which rate will I pay?
What counts is the date of the final notarial deed (escritura), not the deposit contract (contrato de arras). If your deed is signed in 2027 and the law is in force, you will pay 6.75%.
Do UK and other non-resident buyers benefit from the cut?
Yes. The general rate applies whatever your nationality or country of residence, so the cut to 6.75% applies to you too. The reduced rates, however, generally require the property to become your main residence in Spain.
Do I pay ITP on a new build in Andalusia?
No. A new build bought from a developer is subject to 10% VAT and 1.2% stamp duty (AJD) in Andalusia, not ITP. The announced cut only affects resale homes.
What value is ITP calculated on?
On the higher of the price stated in the deed and the cadastral reference value set by the administration.