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What is ITP Tax in Spain?

ITP stands for Impuesto de Transmisiones Patrimoniales — Spain’s Property Transfer Tax. It is a regional tax levied on the buyer when purchasing a resale (second-hand) property anywhere in Spain.

ITP is administered and collected independently by each of Spain’s 17 autonomous communities. The rate you pay depends entirely on where in Spain the property is located — not where you live or where you are from.

• Applies to resale properties only — not new builds from a developer
• Paid exclusively by the buyer
• Rate set by the autonomous community where the property is located
• Calculated on the purchase price or Valor de Referencia, whichever is higher
• Must be paid within 30 working days of signing the title deed at the notary
• Filed via Modelo 600 with the regional tax authority

Who Pays ITP — Buyer or Seller?

ITP is always paid by the buyer. This is a statutory obligation under Spanish law — it cannot be transferred to the seller through any contractual arrangement.

The seller faces different tax obligations: Capital Gains Tax on any profit from the sale, and Plusvalía Municipal — a local tax on the increase in land value. But ITP is entirely the buyer’s cost.

ITP vs VAT — Which Applies to Your Purchase?

ITP and VAT (IVA) are mutually exclusive. You will never pay both on the same residential transaction. The rule is straightforward:

The Valor de Referencia Rule (2022)

Since January 2022, the Spanish tax authority uses the Valor de Referencia — an administrative reference value calculated from recent local sales data — as the minimum taxable base for ITP.

The practical effect:

• Purchase price above Valor de Referencia → ITP calculated on purchase price
• Purchase price below Valor de Referencia → ITP still calculated on the higher Valor de Referencia

ITP Rates by Autonomous Community (2026)

ITP rates are set by each autonomous community and can change with regional budgets. The figures below are current as of May 2026.

Balearic Islands ITP — Tiered Rates Explained

The Balearic Islands — covering Mallorca, Ibiza, and Menorca — apply one of the highest and most complex ITP structures in Spain. The progressive tiered system means the effective rate increases significantly for higher-value purchases.

For a €2,000,000 property in Mallorca or Ibiza, total ITP liability is approximately €188,000. For a €3,000,000 property it exceeds €308,000. These are material costs that must be factored into any purchase budget from the very beginning.

How and When to Pay ITP — Modelo 600

ITP is paid by filing Modelo 600 with the tax office of the autonomous community where the property is located. The deadline is 30 working days from signing the escritura at the notary.

Late payment penalties

Reduced ITP Rates — Who Qualifies?

Most autonomous communities offer reduced ITP rates for specific buyer categories. These must be claimed explicitly when filing Modelo 600 — they are not applied automatically.

Why Your Property Lawyer Handles ITP Payment

While technically possible to file Modelo 600 independently, the overwhelming majority of foreign buyers instruct their lawyer to handle it. The reasons are practical and important:

• Modelo 600 must be completed in Spanish with precise legal and cadastral terminology
• Each autonomous community uses a slightly different form and submission process
• Digital certificates are required for online filing — your lawyer already has these
• Payment is coordinated from the lawyer’s client account, meeting the 30-day deadline without risk
• The stamped receipt is filed with the Land Registry as part of the registration process
• Errors in the tax calculation or property description can trigger an inspection

Frequently Asked Questions — ITP Tax Spain