Andalucía to Reduce ITP on Resale Property to 6.75% in 2027

Andalucía is set to reduce the general rate of Impuesto de Transmisiones Patrimoniales (ITP) on resale property purchases from 7% to 6.75% in 2027, according to measures announced for the region’s 2027 budget.

The announcement, made by Andalucía’s vice-president and Minister for Economy, Finance and European Funds Carolina España on 24 September 2026, represents a reduction in one of the principal transaction costs associated with purchasing an existing property in the region. The Junta has also outlined a longer-term objective of reducing the general rate by a further 0.25 percentage points each year, with a stated target of reaching 6% by the end of the current legislature.

For buyers considering property in Marbella, Estepona, Benahavís, Málaga and elsewhere across Andalucía, the change is relevant primarily to the resale market.

What is ITP?

ITP, or Impuesto de Transmisiones Patrimoniales, is the transfer tax generally paid when purchasing a resale property in Spain. In Andalucía, the current general rate for residential real-estate transfers is 7%.

The tax is paid by the purchaser and forms part of the acquisition costs of a resale property. New-build purchases are treated differently and are generally subject to VAT rather than ITP.

What is changing in 2027?

The proposed 2027 Andalusian Budget will reduce the general ITP rate from 7% to 6.75%.

The government has also stated its intention to continue reducing the rate by 0.25 percentage points annually, with the stated objective of reaching 6%. That future trajectory is a policy commitment rather than a series of rates already enacted, so buyers should distinguish between the announced 2027 measure and future changes that will depend on the relevant legislation and budgets.

What does the reduction mean for buyers?

At the general rate, the immediate saving is 0.25% of the taxable base. The difference becomes more noticeable as the value of the property increases.

For a €1 million resale property, for example, the general-rate ITP liability would be €2,500 lower at 6.75% than at 7%, assuming the same taxable base and no other applicable tax treatment.

Additional changes to reduced rates

The announced measures also change the thresholds for certain reduced ITP rates.

The value limit for the 6% reduced rate applicable to qualifying purchases of a habitual residence is due to increase from €150,000 to €200,000.

The threshold for the 3.5% super-reduced rate is also due to increase from €150,000 to €200,000 for certain qualifying buyers, including people under 35, victims of gender-based violence, victims of terrorism and purchasers in municipalities affected by depopulation. For qualifying people with disabilities and large families, the announced threshold is €300,000.

These reduced rates have specific eligibility conditions and should not be confused with the general 6.75% rate.

What about new-build property?

The ITP reduction primarily affects the resale market. Newly constructed properties are generally subject to VAT rather than ITP, so the announced change does not represent a corresponding reduction in the tax applied to a standard new-build purchase.

Other acquisition costs, including notarial, Land Registry, legal and financing costs where applicable, are also separate from ITP and are not changed by this announcement.

Why it matters for the Andalusian property market

Andalucía has a substantial established residential market, with resale properties forming a significant part of transactions across the Costa del Sol and other major property destinations.

The change therefore affects a broad segment of buyers, including international purchasers acquiring existing villas, apartments and houses. While a quarter-point reduction is relatively modest in percentage terms, the absolute saving increases with the value of the transaction.

The longer-term direction announced by the Junta is also relevant. If the stated annual reductions are implemented, the general rate would move progressively closer to 6% over the course of the legislature. Future reductions, however, remain subject to the relevant legislative process.

When does the change take effect?

The 6.75% rate has been announced as part of the 2027 Andalusian Budget. The measure therefore needs to be incorporated into the relevant legislation before it becomes the applicable rate.

For anyone planning a resale purchase around the turn of the year, the precise timing of completion and the final legislation will be important. The tax is generally triggered by the taxable transaction itself, making completion timing relevant to the applicable rate.

The wider picture

The ITP announcement forms part of a wider package of housing-related tax measures proposed for Andalucía in 2027. According to the Junta, the various changes could benefit approximately 146,500 people across the region, including around 138,000 through the general ITP reduction.

For property buyers, the practical significance will vary according to the purchase price, whether the property is new or resale, the intended use of the property and whether the buyer qualifies for one of the reduced rates.

As the 2027 budget moves through the legislative process, the final wording and effective dates will be important when calculating acquisition costs.

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Sources: Junta de Andalucía and reporting by EFE on the announcement of the 2027 budget measures. Current Andalusian ITP rates are published by the Junta de Andalucía. Tax treatment can vary according to the circumstances of the transaction and should be confirmed against the final legislation.

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