What Is ITP Tax in Spain?

May 5, 2026

ITP (Impuesto de Transmisiones Patrimoniales) is a property transfer tax paid when buying a resale property in Spain. Rates vary by region (typically 6–10%, sometimes higher), and buyers must pay it within 30 days of signing the deed. Underpayment, late payment, or declaring a low price can trigger penalties and tax inspections.

Need help calculating your ITP or making sure it’s paid correctly?

Buying a resale (second-hand) property in Spain? Then you’ll almost certainly encounter ITP, one of the key taxes in the buying process and one that many buyers misunderstand.

Here’s exactly what it is, how it’s calculated, what can go wrong, and how to avoid unnecessary fines or delays.

What Is ITP?

ITP (Impuesto de Transmisiones Patrimoniales) is a one-off tax charged when you buy a resale property. It is paid by the buyer, not the seller, and replaces VAT (IVA), which applies only to new-builds.

ITP is handled at regional level, meaning each autonomous community sets:

Its own tax rate
Its own payment deadlines
Its own rules for inspections and valuations

This is why buyers in Andalucia, Valencia, Cataluña, Madrid, and the Balearics all pay different rates.

How Much Is ITP?

ITP is typically 6%–10% of the property’s taxable value, but the exact rate depends on:

✔ Where the property is located
✔ Whether the region applies a flat rate or a sliding scale
✔ Whether the buyer qualifies for reduced rates (first-time buyer, renovation, disability, large family, etc.)
✔ The property’s official tax value which may differ from the price you pay

Your actual rate may vary depending on your circumstances.

How Is ITP Calculated?

ITP is based on the higher of:

The price you declare in the escritura
The regional tax authority’s official valuation (valor de referencia or cadastral-based calculation)

This means even if you get a bargain, the tax office may value the property higher and you pay tax on their value, not your price.

If you underpay based on this valuation, Hacienda can issue a supplementary tax bill (liquidación complementaria), plus interest.

When Must ITP Be Paid?

Typically, within 30 working days of signing the purchase deed at the notary.

Missing the deadline can cause:

Late-payment interest
Penalties
Delays registering the property
Legal issues if the tax office begins enforcement actions

We handle the entire process to ensure you never miss a deadline.

Common Problems Buyers Face With ITP

Here are the mistakes we see most often:

1. Declaring an unrealistically low purchase price

This triggers red flags and tax inspections.
If Hacienda believes the declared price is too low, they will:

Revalue the property
Issue a supplementary bill
Add interest
Potentially apply penalties

In extreme cases, this appears similar to “paying in black.”

2. Underestimating the true cost of the tax

This triggers red flags and tax inspections.
If Hacienda believes the declared price is too low, they will:

Revalue the property
Issue a supplementary bill
Add interest
Potentially apply penalties

In extreme cases, this appears similar to “paying in black.”

3. Missing the payment deadline

A very common issue for foreign buyers who aren’t aware of the strict timelines.

4. Not checking if reduced rates apply

Many buyers qualify for deductions or reductions but never claim them losing out unnecessarily.

5. Assuming each region works the same way

Spain’s 17 autonomous communities each have different rules. Advice you read online may not apply where your property is located.

Why Paying ITP Correctly Matters

ITP affects:

✔ The legal validity of your purchase
✔ Your ability to register the property
✔ The likelihood of tax inspections
✔ Your future tax bills
✔ Your long-term ownership security

Handling ITP correctly ensures a smooth, fully compliant and risk-free purchase.