Andalusia ITP Cut to 6.75% in 2027: What It Means for Property Buyers

Andalusia property update · 20 October 2026

What has happened and the source

On 24 September 2026 the Andalusian finance minister, Carolina España, told a committee of the Andalusian Parliament that the 2027 regional budget would include a cut in transfer tax on homes. The Junta’s official announcement sets out three changes:

• the general ITP rate falls from 7% to 6.75%, as the first step in a plan to cut it by a quarter point a year until it reaches 6% by the end of the current term;
• the reduced 6% rate for buying a main home will apply to homes up to €200,000, up from €150,000;
• the super-reduced 3.5% rate, for groups such as buyers under 35 and residents of municipalities at risk of depopulation, will also apply up to €200,000, and up to €300,000 for people with disabilities and large families.

The Junta estimates that around 138,000 people will benefit from the general cut next year and about 3,700 from the higher limit for the 6% rate. On 1 October 2026 the President of the Junta also announced in Parliament a 99% inheritance and gift tax relief for a main home passed between siblings, to be included in the same budget.

In mid-October the Ministry published the draft text of the budget law for public comment. The Government has said it will send the bill to Parliament in the coming weeks.

What it means for international buyers

ITP is the tax you pay when you buy a resale home in Spain. In Andalusia it is set by the regional government. The planned cut matters differently depending on how you will use the home.

• Holiday or investment home: you would pay the general rate. Under the plan this falls from 7% to 6.75%, a saving of €250 for every €100,000 of price.
• Main home in Andalusia: if you will live there and meet the conditions, the 6% rate would apply to homes up to €200,000 instead of €150,000.
• Under-35 buyers and other priority groups: the 3.5% rate would apply up to €200,000.
• New build from a developer: no change. You pay VAT and stamp duty instead of ITP.

Most homes bought by non-residents on the Costa del Sol are second homes, so the general cut is the change most likely to affect them. On a €500,000 resale villa in Marbella, the difference between 7% and 6.75% would be €1,250.

What to check

Our own arithmetic on the tax base equal to the price. The taxable value can be higher if the Cadastre’s reference value is above the price; see our guide to the valor de referencia.

Before signing, check:

• Completion date: ITP is charged when the transfer takes place, normally on the date of the deed. A deed signed in December 2026 would pay the current rates.
• Reference value: the tax is calculated on the higher of the price and the Cadastre’s reference value.
• Main-home conditions: the reduced rates have their own requirements. Confirm that you meet them before relying on them.
• Deposit contract: if you are negotiating now, agree a completion date that suits you and make sure the private contract allows it.

Legal context

ITP is a state tax whose rates on property transfers are set by each region. Andalusia’s current rules are in its consolidated law on transferred taxes. The Junta cut the old 8%, 9% and 10% bands to a single 7% rate in 2021, and is now proposing the first cut to that 7%.

The changes are being made through the annual budget law. Last year’s budget, Law 8/2025 of 22 December, was published in the BOJA on 31 December 2025. If the 2027 law follows a similar timetable, the new rates would apply from 1 January 2027, but that is not confirmed until the law is published. A general election is being held in Spain on 29 November 2026. The Junta has said it will keep to its budget plans.

Next steps

• Watch for the Junta approving the budget bill and sending it to Parliament.
• Check the final text in the BOJA for the date the new rates apply and any changes to the conditions.
• If you are close to signing, discuss with your lawyer whether a few weeks’ difference in the completion date matters for your budget.
• Remember that purchase costs also include notary, Land Registry and legal fees. Our Málaga buying guide covers the process.

Frequently asked questions

Is the ITP cut in Andalusia already in force?

No. It was announced on 24 September 2026 for inclusion in the 2027 budget. It applies only once the Andalusian Parliament approves the budget law and it is published in the BOJA.

Will non-resident buyers benefit from the new 6.75% rate?

Yes, if the budget is approved. The general rate applies to resale homes whatever the buyer’s residence. The reduced 6% and 3.5% rates are for main homes and specific groups.

Does the cut apply to new-build homes in Marbella or Málaga?

No. A new home bought from a developer pays VAT and stamp duty, not ITP.

Should I delay my purchase until 2027?

That depends on the saving, the risk of losing the property and the terms of your contract. On a €300,000 second home, the proposed cut is worth €750. Get advice before changing a signed timetable.

Source and scope: Junta de Andalucía, announcement of the 2027 housing tax cuts (24 September 2026); statement by the President of the Junta in Parliament on the sibling inheritance relief (1 October 2026, as reported); publication of the draft 2027 budget text (mid-October 2026, as reported); BOJA, Law 8/2025 of 22 December. Worked examples are our own calculations. Information correct at 20 October 2026. General information, not individual legal advice.

Sophie

Sophie Gutenberg is a legal content specialist focused on Spanish property law, real estate transactions, conveyancing, due diligence and tax issues affecting international property buyers in Spain. She works alongside qualified Spanish property lawyers .