Property purchase tax in Andalucía: what you actually pay, and what is about to change

Every buyer in Marbella asks the same question early in the process: what will I actually pay on top of the purchase price?

For buyers purchasing a resale property, the largest additional cost is usually the Andalusian Property Transfer Tax (ITP). And from 2027, that figure is set to change.

On 24 September 2026, Carolina España, Andalucía’s Minister of Economy, Finance and European Funds, announced that the region’s 2027 budget will reduce the general ITP rate on property purchases from 7% to 6.75%. The government also announced changes to the price thresholds that apply to certain reduced rates.

Until the new measure takes effect, the current general ITP rate for resale property in Andalucía remains 7%.

This guide is designed to be the reference point for the current costs and taxes involved in buying property in Marbella and the wider Costa del Sol. We will update the figures here whenever the rules change. For a complete overview of the purchasing process, see our Marbella Property Buyer’s Guide, which links back to this page for the latest tax figures rather than repeating information that may become outdated.

That way, whether you are buying now or planning ahead, you can check one place for the latest figures and understand what to budget on top of the agreed purchase price.

On a resale property, the Andalusian Property Transfer Tax (Impuesto de Transmisiones Patrimoniales, or ITP) is currently charged at a general rate of 7%. Add notary fees, Land Registry fees and legal fees, and a practical working budget is around 8% to 9% on top of the purchase price.

On a new-build property bought from a developer, ITP does not apply. Instead, the purchase is generally subject to 10% VAT (IVA) plus Stamp Duty (Actos Jurídicos Documentados, or AJD), currently charged at 1.2% in Andalucía. That means 11.2% in taxes alone, with a practical overall budget of around 12% to 13% once the usual purchase costs are included.

Reduced ITP rates are available in certain circumstances. A 6% rate applies when the property will be the buyer’s main residence and its value does not exceed €150,000. A reduced rate of 3.5% can apply to buyers under 35, victims of domestic violence or terrorism, and purchases in qualifying municipalities at risk of depopulation, provided the property becomes the buyer’s main residence and its value does not exceed €150,000. For qualifying buyers with a disability and members of large families, the 3.5% rate can apply to a main residence valued at up to €250,000.

Two changes were announced for 2027, but only one is likely to be relevant to most buyers in Marbella.

The general ITP rate is set to fall from 7% to 6.75%. This is the important change for most buyers of resale property because the general rate is not limited to lower-priced homes. The Andalusian government has described the reduction as part of a commitment to cut the rate by a further quarter of a percentage point each year, with the aim of reaching 6% by the end of the legislature.

The second change concerns the reduced rates available for certain purchases of a main residence. The property-value ceiling for the 6% reduced rate is set to rise from €150,000 to €200,000. The same increase to €200,000 applies to the 3.5% super-reduced rate for buyers under 35, victims of gender violence or terrorism, and qualifying purchases in municipalities at risk of depopulation. For people with disabilities and large families, the corresponding ceiling is set to rise from €250,000 to €300,000.

The Junta estimates that around 146,500 people could benefit from the announced housing tax changes in 2027, with approximately 138,000 benefiting from the reduction in the general ITP rate alone.

For context, the change follows the major 2021 ITP reform, when Andalucía replaced its previous progressive rates of 8%, 9% and 10% with a single general rate of 7%.

For a Marbella buyer looking at a resale property above €200,000, the figure to watch is therefore straightforward: the general ITP rate is currently 7% and is set to become 6.75% in 2027.

The quarter point looks small until you apply it to a real purchase.

Whether a saving of that size changes a decision is a different question. For most buyers at these levels it will not be the deciding factor, but it is real money and it belongs in the budget.

Because resale properties are generally subject to ITP while new-build homes purchased from a developer are subject to VAT and AJD, a falling ITP rate widens the tax gap between the two.

Today, the general tax rate on a resale in Andalucía is 7%. On a new build, the combination of 10% VAT and 1.2% AJD brings the tax bill to 11.2%. That is already a difference of 4.2 percentage points.

If the general ITP rate reaches 6% while the tax treatment of new-build property remains unchanged, that gap will increase to 5.2 percentage points.

On a €5 million purchase, the difference is significant. At today’s rates, the tax bill on a new build is €210,000 higher than on a resale at the same price. At a 6% ITP rate, that difference would rise to €260,000.

That does not make a new build a bad decision. Lower running costs, a ten-year structural guarantee, current specifications and no immediate renovation budget all sit on the other side of the equation.

But anyone comparing a new development with a resale property at a similar asking price should include the tax difference in the calculation. And if the announced ITP reductions continue as planned, that gap is set to get wider rather than narrower.

The cadastral reference value still applies. For resale property, ITP is generally calculated on the higher of the purchase price, the value declared in the transaction and the valor de referencia assigned by the Spanish Catastro. This means that a well negotiated purchase below the reference value can still be taxed on the higher reference figure.

That distinction matters. A lower ITP percentage does not change the taxable base. Before completing a resale purchase, buyers and their lawyers should therefore check the property’s reference value rather than assuming that the agreed purchase price will automatically determine the tax bill.

New build treatment is unchanged. VAT is a national tax, so the Andalusian government’s announcement does not reduce the 10% VAT applicable to qualifying new residential property purchases from a developer.

The other purchase costs are also unaffected. Notary, Land Registry and legal fees still need to be budgeted separately, while the ongoing costs of ownership, including IBI, refuse charges, utilities, insurance and, where applicable, non resident income tax, are not affected by the announced ITP reduction.

This is an announced measure for the 2027 Andalusian budget, not yet a change in the tax rate currently in force. The 2027 budget must go through the Andalusian Parliament for examination and approval, and the Junta has stated that the new ITP rate will apply from 2027.

Until the measure is approved and enters into force, the general ITP rate remains 7%. If you are completing a resale purchase before the new rate takes effect, 7% remains the relevant general rate.

If your purchase is due to complete around the turn of the year, it is worth asking your lawyer which rate will apply based on the date on which the tax becomes due. We are not tax advisers, and individual circumstances should always be checked with your lawyer or tax adviser, but it is a sensible question to raise. At Marbella property values, even a quarter point difference can represent a meaningful amount of money.

What is ITP?

Impuesto de Transmisiones Patrimoniales, the transfer tax payable when you buy a resale property in Spain. It is a regional tax, so the rate varies by autonomous community, and Andalucía sets its own.

What is the current rate in Andalucía?

The general rate is 7%. A 6% reduced rate and a 3.5% super-reduced rate apply in specific circumstances, subject to a price ceiling currently set at €150,000.

When does the rate fall to 6.75%?

From 2027, as part of the regional budget for that year, subject to parliamentary approval.

Will it really reach 6%?

That is the stated commitment: a quarter point each year for the rest of the legislature. It is a political intention rather than a legislated schedule, so treat it as a direction of travel rather than a certainty.

Does the change affect new build purchases?

No. New build from a developer carries 10% VAT plus 1.2% stamp duty, and VAT is set nationally. As ITP falls, the cost difference between buying new and buying resale widens.

I am buying at €2 million. Does the 147,000 figure include me?

No. That number relates mainly to the rise in the price ceiling from €150,000 to €200,000 for the reduced and super-reduced rates. The part that affects you is the quarter point cut in the general rate, which applies at any price.

Should I delay my purchase until 2027?

That is a question for your own adviser and depends entirely on your circumstances. A quarter point is €2,500 on a €1 million purchase and €12,500 on €5 million, which is real but rarely decisive against the risk of losing a property you want. We would not advise anyone to delay a good purchase for it.

What else do I pay on top of the price?

Notary, land registry and legal fees of roughly 1% to 2%. Budget around 8% to 9% over the price on a resale and 12% to 13% on a new build. Our guide to buying property in Marbella sets out the whole process.

For most buyers in the Marbella market, the most relevant part of the announcement is straightforward: the general ITP rate is set to fall by a quarter of a percentage point in 2027. The changes to the reduced rates and their price thresholds will matter to a different segment of the Andalusian housing market.

A quarter point may not sound significant in isolation, but at Marbella property values it adds up. And if the stated path towards a 6% general rate is completed, the difference becomes more meaningful. On a €3 million resale purchase, 6% ITP would mean a tax bill €30,000 lower than at today’s 7% rate.

It would also increase the tax difference between new build and resale, making purchase costs a more important part of any like for like comparison between the two.

Our advice remains the same: budget properly from the start. Tax is usually the largest single cost on top of the purchase price, and it can be calculated before you buy. A buyer comparing properties at €1 million, €3 million or €5 million should be comparing the total acquisition cost, not simply the asking price.

That is ultimately what this page is for: to keep the numbers current, explain what they mean in practice and make sure there are no surprises when it is time to complete the purchase.

The Andalusian government has stated its intention to reduce the general ITP rate further over the course of the legislature. We will review and update this page as each change is formally approved, so the figures here reflect the latest position.

Tax rules can change, and the circumstances of individual purchases differ. Before completing a property purchase, always confirm the applicable rate and taxable base with your lawyer or tax adviser.

For a broader view of the market, see our Marbella property market report.

If you are considering buying a property in Marbella and would like to discuss your search, get in touch with Marbella Hills Homes.