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Quick answer
On 24 September 2026 the Junta de Andalucía announced that the general rate of ITP (Impuesto sobre Transmisiones Patrimoniales), the transfer tax paid when you buy a resale home, will fall from 7% to 6.75% in 2027. On a €500,000 resale that is €1,250 less tax. New builds are not affected, because they carry IVA instead of ITP. The cut is part of the 2027 regional budget and still needs parliamentary approval.
Key facts
| Today | From 2027 (planned) | |
|---|---|---|
| General ITP rate, resale homes | 7% | 6.75% |
| Reduced 6% rate, habitual residence | up to €150,000 | up to €200,000 |
| Super-reduced 3.5% rate (under 35s and other groups) | up to €150,000 | up to €200,000 (€300,000 for disability and large families) |
| Long-term target | 6% by end of legislature, 0.25 points a year | |
| New builds | 10% IVA | unchanged |
Source: Junta de Andalucía, 24 September 2026. Checked 25 September 2026.
What was announced
Carolina España, Andalucía’s vice-president and minister for the economy and finance, told a committee of the Andalusian Parliament that the 2027 budget will lower the general ITP rate by a quarter point. The government has committed to cutting it by another quarter point each year until it reaches 6%. This continues the 2021 reform, which replaced the old 8%, 9% and 10% bands with a flat 7%.
What it saves you
| Resale price | ITP at 7% | ITP at 6.75% | Saving |
|---|---|---|---|
| €300,000 | €21,000 | €20,250 | €750 |
| €500,000 | €35,000 | €33,750 | €1,250 |
| €750,000 | €52,500 | €50,625 | €1,875 |
| €1,000,000 | €70,000 | €67,500 | €2,500 |
| €1,500,000 | €105,000 | €101,250 | €3,750 |
ITP is charged on the higher of the price you pay and the property’s valor de referencia from the Dirección General del Catastro. If the valor de referencia is above your price, the saving is calculated on that figure.
Who benefits, and who doesn’t
Most of our clients buy a second home on the Costa del Sol, and for them the general rate is what matters. The reduced rates of 6% and 3.5% only apply when the property becomes your habitual residence, and the price caps mostly help local first-time buyers. At €200,000 they won’t reach much of the market in La Cala de Mijas or Marbella East.
If you buy new from a developer, you pay IVA and stamp duty instead of ITP, so nothing changes for you. We explain the difference in new build vs resale on the Costa del Sol.
When it takes effect
The cut is expected from 1 January 2027 if the budget passes. ITP falls due on the date you sign the escritura at the notary, not the date you reserve or sign the private contract. A buyer completing on 20 December 2026 pays 7%. The same buyer completing on 8 January 2027 should pay 6.75%.
My advice: if your completion date is flexible around New Year, it’s worth a conversation with your lawyer. But don’t let €1,250 cost you the right property. Sellers negotiate on far bigger numbers than that.
Our take
A quarter point won’t change anyone’s decision to buy on the Costa del Sol. The direction matters more. Andalucía cut ITP to a flat 7% in 2021, and has now committed to bringing it down to 6%. For buyers it means purchase costs are heading the right way, and that is a welcome signal.
Frequently asked questions
Does the ITP cut apply to non-residents?
Yes. The general rate applies to everyone buying a resale home in Andalucía, resident or not.
Does it apply to new builds?
No. New homes bought from a developer carry 10% IVA, not ITP.
Is it law yet?
Not yet. It is in the draft 2027 budget, which must pass the Andalusian Parliament.
Will ITP keep falling?
The Junta plans to cut it by a quarter point a year, to 6% by the end of the legislature. Each step needs its own budget.
See your full purchase costs in our cost calculator, or talk to us about timing your completion.