Impuesto de Transmisiones Patrimoniales — Spanish Property Glossary

Impuesto de Transmisiones Patrimoniales (ITP) is the transfer tax paid by the buyer when purchasing a resale property in Spain. It does not apply to new builds, which are subject to IVA instead. ITP rates vary by autonomous community and typically range from 6% to 10% of the declared purchase price. In the Valencian Community the rate is 10%, in Andalusia it is 7%, and in Catalonia it is 10% for properties above certain thresholds. The tax must be paid within 30 days of signing the escritura, and your lawyer or gestor usually handles the filing. Failure to pay on time results in surcharges and interest. The tax authorities may reassess the declared price if they consider it below market value, potentially leading to an additional tax bill. To avoid this, ensure the price declared in the escritura reflects the true transaction value. For investors, ITP is a significant acquisition cost that affects overall yield calculations. It is not recoverable and should be factored into your total investment budget alongside notary fees, registry fees, and legal costs.