If you're about to buy a resale property in Spain, there's one tax that will directly determine how much money you need available on signing day: the ITP. And here's the part that surprises many buyers: the exact same property, at the exact same price, can end up costing several thousand euros more or less simply because of which autonomous region it's in. In this article, we explain what the ITP is and compare, with real figures, how much is paid in the four markets where we operate: Madrid, Catalonia, the Balearic Islands and the Valencian Community.
What Is the ITP
The Property Transfer Tax (Impuesto de Transmisiones Patrimoniales, or ITP) is the tax paid when buying a resale property in Spain. It's different from VAT, which applies to the purchase of new-build property (together with the Stamp Duty tax, AJD). In other words: on a resale home you pay ITP; on a new-build home you pay VAT + AJD.
A key feature of the ITP is that it isn't set by the national government, but by each autonomous region. The national regulatory framework allows each region to set its own rate, its own brackets and its own reductions for groups such as young people, large families or people with disabilities. The result is a very uneven tax map: buying the same property can end up notably more expensive in one region than in another.
The ITP is calculated on whichever is higher: the Land Registry reference value or the price stated in the deed. It's declared using Form 600, generally within 30 working days of signing the deed.
How Much You Pay in Each of Our Four Markets
Madrid: the lowest rate of the four
Madrid applies a flat general rate of 6%, one of the lowest in the whole of Spain. It's a fixed rate (not progressive): that percentage is applied to the full value of the property, with no brackets.
Example: a €400,000 property pays €24,000 in ITP in Madrid.
Reduced rates exist for certain groups (large families, people with disabilities, people under 35 in specific circumstances), but the general 6% rate already makes Madrid one of the most tax-competitive regions for buying resale property.
Catalonia: a progressive scale with a strong impact on high-value properties
Catalonia applies a progressive bracket-based scale which, in 2026, looks like this:
- Up to €600,000: 10%
- From €600,000 to €900,000: 11%
- From €900,000 to €1,500,000: 12%
- Over €1,500,000: 13%
The system works just like income tax (IRPF): each bracket of the price is taxed at its corresponding rate, rather than applying a single rate to the whole amount.
Example: a €400,000 property (below the first bracket) pays €40,000 in ITP in Catalonia.
This means that, for a €400,000 property, the difference between buying in Madrid (€24,000) and in Catalonia (€40,000) is €16,000, purely due to regional taxation.
The Balearic Islands: the widest scale in the whole of Spain
The Balearic Islands have the most complex and progressive system of the four markets, with brackets ranging from 8% to 13%:
- Up to €400,000: 8%
- From €400,000 to €600,000: 9%
- From €600,000 to €1,000,000: 10%
- From €1,000,000 to €2,000,000: 12%
- Over €2,000,000: 13%
Example: a €400,000 property pays €32,000 in ITP in the Balearic Islands (8% on the full amount, as it doesn't exceed the first bracket).
Given property price levels on the islands, it's common for transactions in Mallorca or Ibiza to already fall into the second or third bracket. The Balearic Islands also offer a reduced rate of 4% for a primary residence worth up to €270,151.20, dropping to 2% for buyers under 36, large or single-parent families, and people with disabilities, with a 100% exemption for buyers under 30 on their first primary residence.
The Valencian Community: a recent cut to the general rate
The Valencian Community lowered its general rate in 2026: as of 1 June, the rate dropped from 10% to 9%, while the 11% rate remains in place for properties worth over €1,000,000.
Example: a €400,000 property pays €36,000 in ITP in the Valencian Community (under the new 9% rate).
Reduced rates also exist: 6% for a first primary residence for buyers under 35 (up to €180,000, 8% above that amount), and 3% for large or single-parent families (up to €180,000, 4% above that amount).
Quick Comparison: Same Property, Different Tax Cost
For a resale property worth €400,000, the ITP payable would be approximately:
Madrid: €24,000
Valencian Community: €36,000
Balearic Islands: €32,000
Catalonia: €40,000
The gap between the cheapest region (Madrid) and the most expensive (Catalonia) exceeds €16,000 on a transaction of this size, and the gap widens further as the property price rises, especially in Catalonia and the Balearic Islands due to their bracket structure.
Why It Matters Before You Buy
The ITP isn't a minor expense within your purchase budget: together with notary, registry and administrative fees, it forms part of the additional 10-15% you need to add to the property price to get the real cost of the transaction. Knowing the exact rate in your region — and checking whether you qualify for a reduced rate based on age, family situation or disability — can mean savings of thousands of euros. It's a calculation worth doing before signing the deposit contract, not after.
Frequently Asked Questions About the ITP
Do you also pay ITP when buying a new-build property? No. On new-build property you pay VAT (generally 10%) plus Stamp Duty (AJD), not ITP.
Who pays the ITP, the buyer or the seller? It's always paid by the buyer, within 30 working days of signing the deed.
Can the ITP be reduced? Yes. Most autonomous regions apply reduced rates for young people, large families, people with disabilities or subsidised housing, provided the age, income or maximum property value requirements set by each region are met.
Is the ITP calculated on the purchase price or the cadastral value? It's calculated on whichever is higher: the price stated in the deed or the Land Registry reference value.
At aProperties we operate in Madrid, Barcelona, Palma and Valencia, and we know the tax particularities of each market first-hand. If you're considering buying a property in any of these markets, get in touch with our team: we'll help you calculate the real cost of the transaction before you sign anything.