Taxes on Buying Property in Andalusia: ITP, VAT, and Hidden Costs
Quick answer: in Andalusia, buying a resale property is taxed at 7% transfer tax (ITP), with reduced rates of 6% and 3.5% for homes up to €150,000–€250,000. New-build property is taxed at 10% VAT plus 1.2% stamp duty (AJD), a combined 11.2%. On top of that come notary, Land Registry, conveyancing agent and legal fees. In practice: an extra 9% to 11% on resale and 13% to 15% on new-build.
TL;DR: the five points that matter
- ITP in Andalusia is 7% as the standard rate on resale property. The reduced rates (6% and 3.5%) require the home to be your main residence and the value not to exceed €150,000 or €250,000 depending on your profile.
- New-build carries an 11.2% tax burden (10% VAT + 1.2% stamp duty). Special-regime social housing drops to 4% VAT.
- The taxable base is no longer the deed price. Since 2022 you are taxed on the higher of two figures: the price you paid or the Land Registry reference value (valor de referencia) published by the Cadastre. Spain’s Constitutional Court upheld the system in February 2026.
- You have two months from signing to file Modelo 600 with the Andalusian Tax Agency, not the 30 working days that apply under the state regime.
- On the Costa del Sol the reduced rates almost never apply. With Fuengirola at €5,098/m² and Marbella at €5,767/m² (Fotocasa, Q2 2026), the €150,000 ceiling buys a studio of under 30 m².
The asking price is only the beginning. This guide breaks down, item by item and with hard figures, every tax and cost you need to budget for when buying in Andalusia in 2026, including cost simulators by price bracket and the particular realities of the Costa del Sol.
The most expensive mistake a buyer makes is not overpaying for the property: it is budgeting for the price alone. In Andalusia, taxes and associated costs add up to tens of thousands of euros that must be available in cash, because no lender will finance them. And since 2022 there is a further factor that catches most people off guard: the tax authorities do not calculate your bill on what you paid, but on what the Cadastre says the property is worth.
Let’s take it in order, starting with the figure you need.
How much tax do you pay when buying a property in Andalusia?
It comes down to a single decisive variable: whether the property is a resale or a new-build bought directly from the developer. This table sets out the complete framework in force in 2026.
| Item | Resale property | New-build (bought from developer) |
|---|---|---|
| Main tax | Transfer tax (ITP): 7% | VAT (IVA): 10% |
| Documentary tax | Not applicable | Stamp duty (AJD): 1.2% |
| Total tax burden | 7% | 11.2% |
| Reduced rates | 6% and 3.5% | VAT 4% (special-regime social housing); AJD 1%, 0.3% and 0.1% |
| Taxable base | The higher of deed price and Cadastre reference value | Agreed sale price |
| Collected by | Junta de Andalucía | Spanish Tax Agency (VAT) and Junta de Andalucía (stamp duty) |
| Filing deadline | 2 months (Modelo 600) | VAT at completion; stamp duty within 2 months (Modelo 600) |
The practical conclusion surprises many buyers: new-build property is more expensive in tax terms than resale, by 4.2 percentage points. On a €400,000 home, that is a €16,800 difference in tax alone.
The taxable base is no longer the deed price: the Cadastre reference value
This is the change in the law that costs the most money to those who don’t know about it, and the one that generates the most queries in our office.
What it is and why it affects you
Law 11/2021 on the prevention of tax fraud introduced the Cadastre reference value (valor de referencia). Since 1 January 2022 it operates as the minimum taxable base for transfer tax and stamp duty: you pay tax on whichever is higher of these two figures:
- The price actually recorded in the title deed.
- The reference value the Cadastre publishes for that specific property.
If you buy a flat for €240,000 and its reference value is €280,000, the transfer tax is calculated on €280,000: €19,600 instead of €16,800. That is €2,800 you were not expecting.
The reference value can be checked free of charge on the Cadastre’s electronic portal using the property’s cadastral reference. Do it before you sign the reservation contract, not afterwards.
The Casares case that reached the Constitutional Court
This is neither theoretical nor remote: it began here. A married couple bought a home with a garage in Casares (Málaga) for €209,000, and the Andalusian administration raised the taxable base to €272,468 by applying the reference value, some 30% above the deed price. The High Court of Justice of Andalusia (Málaga) referred the question to the Constitutional Court.
In February 2026 the Constitutional Court upheld the system, but with a decisive qualification: the reference value is a rebuttable presumption, meaning it admits evidence to the contrary without any evidentiary restriction, expert reports included. It is not beyond challenge.
How to challenge it if it is disproportionate
The correct procedure is to self-assess first (pay on the reference value, within the deadline) and then request rectification of the self-assessment with a refund of the overpayment. The Andalusian Tax Agency notes that, where the base is the reference value, you cannot reserve the right to a contradictory expert valuation through an appeal for reconsideration or an economic-administrative claim.
The 2026 case law has been clear on one point: disagreeing is not enough. A reasoned expert report is required, evidencing either a departure from market value or errors in the cadastral data. A generic mortgage valuation, prepared for a different purpose, will not usually suffice. In April 2026 the Supreme Court admitted an appeal that will settle the question of what evidence is sufficient, so this point may yet develop.
One figure puts the problem in perspective: according to the Directorate-General of the Cadastre, in 2024 rectification was requested in only 1.15% of cases where the reference value exceeded the transfer price, and in half of those the value was corrected. Few people challenge it, and when they challenge it properly, it works.
Resale property: transfer tax (ITP) in Andalusia
Transfer tax is always paid by the buyer. Andalusia standardised its regime under Law 5/2021 of 20 October, replacing the old progressive scale with a single standard rate of 7%, one of the most moderate in mainland Spain.
Reduced rates: who can pay 6% or 3.5%
| Buyer profile | ITP rate | Maximum property value |
|---|---|---|
| Standard rate (any buyer) | 7% | No limit |
| Main residence, no personal requirement | 6% | €150,000 |
| Buyer under 35 | 3.5% | €150,000 |
| Victim of domestic violence or terrorism | 3.5% | €150,000 |
| Purchase in a municipality at risk of depopulation | 3.5% | €150,000 |
| Member of a large family (familia numerosa) | 3.5% | €250,000 |
| Disability of 33% or more (buyer or household member) | 3.5% | €250,000 |
Three rules that are constantly overlooked:
- The reduced rates are not tiered. You do not pay 6% up to €150,000 and 7% on the excess: exceed the ceiling by a single euro and the whole amount is taxed at the standard rate.
- The ceiling is measured against the taxable base, not against what you pay. A home bought for €145,000 with a reference value of €158,000 loses the reduced rate and is taxed at 7% on €158,000.
- For married couples and registered civil partners, only one of the two needs to qualify on age or disability. Where several buyers without that legal tie purchase together, the reduced rate applies only to the proportional share of whoever qualifies.
Main residence requirements (and how the relief is lost)
To keep the reduced rate you must actually take up residence within 12 months and keep the property as your main home for at least three years. Sell it or let it out before then and you will have to file a supplementary self-assessment and pay the difference up to the standard rate, plus late-payment interest.
One operational warning: reduced rates are not applied automatically. If you do not claim them correctly on Modelo 600, the tax office assesses at 7% and will not put it right on your behalf.
Why almost nobody on the Costa del Sol reaches the reduced rates
Here it is worth being straight with you rather than selling expectations. The €150,000 and €250,000 ceilings were set with the Andalusian average in mind, and the western Costa del Sol has long been playing in a different league.
| Municipality | Average price (€/m²) | Maximum floor area within the 3.5% ceiling (€150,000) |
|---|---|---|
| Benahavís | 5,825 | 26 m² |
| Marbella | 5,767 | 26 m² |
| Estepona | 5,199 | 29 m² |
| Fuengirola | 5,098 | 29 m² |
| Málaga province (average) | 4,690 | 32 m² |
| Andalusia (average) | 2,990 | 50 m² |
Translation: if you are buying in Fuengirola, Mijas, Benalmádena, Marbella or Estepona, budget for 7%. The 3.5% rate is a genuine option inland or in municipalities at risk of depopulation, not on the seafront. If your budget is tight and tax weighs on the decision, it is worth reviewing the emerging areas of the Costa del Sol that still offer reasonable prices.
New-build: VAT plus stamp duty
When you buy directly from the developer, the transaction is not subject to transfer tax but to VAT, and stamp duty is additionally charged on the first authorised copy of the deed.
VAT: 10% standard, 4% on special-regime social housing
VAT is a national tax, identical across Spain: 10% on open-market housing and 4% on special-regime or publicly promoted social housing (VPO). You do not file it yourself; you pay it to the developer along with the price and the developer accounts for it to the Spanish Tax Agency.
Watch the staged payments during construction: each instalment triggers its own VAT when it is collected. If you are buying off-plan, read our guide to buying off-plan new-build on the Costa del Sol before signing with the developer.
Stamp duty: 1.2% standard and reduced rates in Andalusia
| Case | Stamp duty rate | Maximum value |
|---|---|---|
| Standard rate | 1.2% | No limit |
| Main residence, no personal requirement | 1% | €150,000 |
| Buyer under 35, victim of domestic violence or terrorism, or municipality at risk of depopulation (main residence) | 0.3% | €150,000 |
| Large family or disability of 33% or more (main residence) | 0.1% | €250,000 |
Worked example. A new-build flat in Fuengirola at €320,000:
- VAT (10%): €32,000
- Stamp duty (1.2%): €3,840
- Total tax: €35,840 (11.2%)
That same property, if it were a resale, would attract €22,400 in transfer tax. The difference, €13,440, is real and belongs in the comparison alongside the savings on refurbishment, the energy efficiency and the ten-year structural warranty that come with new-build.
Stamp duty on the mortgage is paid by the bank, not by you
A common confusion. There are two distinct stamp duty charges in play:
- Stamp duty on the new-build purchase deed: paid by the buyer (1.2%).
- Stamp duty on the mortgage deed: since Royal Decree-Law 17/2018 this is paid by the lender. Law 5/2019 on real estate credit agreements added that the bank also covers the notary, Land Registry and conveyancing agent costs of the mortgage. The borrower is responsible only for the valuation and any copies requested.
If you are financing the purchase, it pays to know which costs are negotiable and which are not: we set it out in our guide on how to get the perfect mortgage for your new home.
Cost simulator: what buying in Andalusia really costs
These are the full figures, not just the tax. Scenario: a buyer on the standard rate, without a mortgage, using a property lawyer at 1% plus VAT.
Resale (7% transfer tax)
| Price | ITP 7% | Notary | Land Registry | Conveyancing agent | Lawyer | Total costs | % of price |
|---|---|---|---|---|---|---|---|
| €200,000 | €14,000 | €750 | €450 | €350 | €2,420 | €17,970 | 9.0% |
| €255,000 | €17,850 | €800 | €500 | €350 | €3,086 | €22,586 | 8.9% |
| €350,000 | €24,500 | €900 | €600 | €350 | €4,235 | €30,585 | 8.7% |
| €500,000 | €35,000 | €1,100 | €700 | €350 | €6,050 | €43,200 | 8.6% |
| €800,000 | €56,000 | €1,400 | €950 | €350 | €9,680 | €68,380 | 8.5% |
A concrete example from our own portfolio: this 2-bed apartment for sale in Fuengirola at €255,000 requires roughly €22,600 in additional funds on completion day. Add a 70% mortgage and the deposit on top, and you are looking at around €99,100 of your own capital in total.
New-build (10% VAT + 1.2% stamp duty)
| Price | VAT 10% | Stamp duty 1.2% | Notary | Land Registry | Conveyancing agent | Lawyer | Total costs | % of price |
|---|---|---|---|---|---|---|---|---|
| €200,000 | €20,000 | €2,400 | €750 | €450 | €350 | €2,420 | €26,370 | 13.2% |
| €350,000 | €35,000 | €4,200 | €900 | €600 | €350 | €4,235 | €45,285 | 12.9% |
| €500,000 | €50,000 | €6,000 | €1,100 | €700 | €350 | €6,050 | €64,200 | 12.8% |
| €800,000 | €80,000 | €9,600 | €1,400 | €950 | €350 | €9,680 | €101,980 | 12.7% |
Budgeting rule: set aside 12–14% on top of the purchase price. On resale you will have margin to spare; on new-build it will fit almost exactly. If the result exceeds what you can afford, adjust your maximum search price, never the costs.
Notary, Land Registry and conveyancing agent: what is negotiable and what is not
- Notary. Fees are set by national scale, so you cannot shop around on price. What does affect the bill is the number of registered titles (a separate garage space or storeroom adds cost), the length of the deed and the number of authorised copies. Typical range: €550–€1,400. The buyer chooses the notary, even if the seller suggests their own.
- Land Registry. Also fixed by scale, between €400 and €950 on standard transactions. Registration is not compulsory by law, but without it your title is not enforceable against third parties. Always register.
- Conveyancing agent (gestoría). Between €300 and €600. Optional if you file Modelo 600 and handle registration yourself. Where there is a mortgage, the bank appoints its own agent and pays for it.
The costs almost nobody mentions
| Item | Indicative cost | Compulsory? |
|---|---|---|
| Valuation (only with a mortgage) | €300–€600 | Yes, if financing |
| Property lawyer | ≈ 1% + VAT | No, strongly advised |
| Preliminary Land Registry extract (nota simple) | €10–€25 | No, essential in practice |
| Community of owners debt certificate | €0–€50 | Yes, provided by the seller |
| Pro-rata council tax (IBI) for the current year | Variable | Negotiable in the reservation contract |
| Utility connections and name changes | €50–€200 | In practice, yes |
| Home insurance | €200–€600/year | Required by the lender if there is a mortgage |
| Habitation certificate or energy performance certificate | €0 | Seller’s responsibility |
One note on IBI (annual council property tax): the taxpayer is whoever is the registered owner on 1 January, that is, the seller. However, the Supreme Court accepts that the seller may pass on the proportional share to the buyer unless otherwise agreed. It is settled in the reservation contract, so get it in writing.
Municipal capital gains tax: paid by the seller
The tax on the increase in urban land value (IIVTNU, commonly plusvalía municipal) taxes the appreciation of the land, not the building, and is legally the seller’s liability in a sale.
After the Constitutional Court struck down the previous system, Royal Decree-Law 26/2021 established two calculation methods — objective (cadastral land value multiplied by coefficients based on years of ownership) and real (actual gain multiplied by the land’s share of value) — and the council must apply whichever is more favourable to the taxpayer. Where there has been no genuine increase in value, no tax is due.
As a buyer it affects you in two ways. First, some sellers try to pass it on in the contract. It is negotiable, but you are under no obligation to accept it; if it is put to you, negotiate it or adjust the price. Second, when you come to sell, you will pay it. Each council sets its own coefficients and rates within the legal maxima, so Marbella, Mijas and Torremolinos do not necessarily apply the same figures.
Non-resident buyers: what changes
At the point of purchase, a foreign buyer pays exactly the same taxes as a Spaniard: the same transfer tax, the same VAT, the same stamp duty. The differences come afterwards.
- NIE number required before completion, plus a Spanish bank account for direct debits on utilities and taxes.
- Non-resident income tax on rental income. Residents of the EU, Iceland and Norway: 19% on net income, with deductible expenses. All other countries: 24% on gross income, with no deductions. Filed on Modelo 210.
- Deemed income if you do not let the property. Even where the home sits empty or is for your own use, you are taxed on a notional income of 1.1% or 2% of the cadastral value, at 19% or 24% depending on your country of residence.
- Wealth tax. Andalusia grants a 100% rebate on the regional wealth tax liability, but the national Temporary Solidarity Tax on Large Fortunes (Law 38/2022) acts as a floor above €3m of net wealth. Relevant in the prime segment in Marbella and Sotogrande.
- A 3% retention on sale. The buyer is obliged to withhold 3% of the price and pay it over on account of your non-resident income tax (Modelo 211).
- Buying does not grant residency. The residency-by-property-investment programme was abolished in April 2025. Buying a home does not, in itself, entitle you to live in Spain beyond the ordinary permitted stay.
For the full picture on process, paperwork and lending as an overseas purchaser, see our guide to buying property in Spain as a foreigner. If you are coming from the UK, residency rules and administrative steps are covered in our post-Brexit guide for British citizens. And to size up the annual budget rather than just the purchase, the real cost of living on the Costa del Sol is a useful reference.
And when you sell: what to know from day one
Exit taxation shapes entry decisions. Three situations we are asked about daily:
- Capital gains in personal income tax. Taxed within the savings base, at rates from 19% to 30% depending on the bracket.
- Sellers aged 65 and over. The gain on the sale of your main residence is entirely exempt from income tax, with no need to reinvest, provided it has been your main home for at least three years. For second homes, the exemption requires reinvestment in a lifetime annuity (up to €240,000, within six months). Note: this exemption applies only to income tax; municipal capital gains tax remains payable unless the local council’s own bylaw provides specific relief.
- Rollover relief. At any age, if you sell your main residence and reinvest the proceeds in another main residence within two years, the gain is exempt to the extent reinvested.
Timetable and filings: how to settle without surcharges
| Filing | Deadline | Form | Authority |
|---|---|---|---|
| Transfer tax (resale) | 2 months from the day after the taxable event | Modelo 600 | Andalusian Tax Agency |
| Stamp duty (new-build) | 2 months from the day after the taxable event | Modelo 600 | Andalusian Tax Agency |
| VAT (new-build) | At the time of each payment | — | Accounted for by the developer to the Spanish Tax Agency |
| Municipal capital gains tax (seller) | 30 working days | Per local bylaw | Town hall |
| Non-resident deemed income | Following calendar year | Modelo 210 | Spanish Tax Agency |
Modelo 600 is prepared and filed online through the Andalusian Tax Agency’s virtual office using a digital certificate, or in person at the provincial offices and collaborating banks. Miss the deadline and a late-filing surcharge applies, although it is reduced by 25% if you pay the full amount together with the self-assessment.
Our recommendation
| Your priority | What suits you | Why |
|---|---|---|
| Living here (lifestyle) | Well-located resale | You save 4.2 percentage points in tax and buy into established areas with services and transport. The tax margin freed up pays for the refurbishment. |
| Rental yield | Resale in Fuengirola, Torremolinos or Benalmádena | Lower entry cost against the same income potential. A 7% transfer tax dents the return far less than 11.2% on new-build. |
| Long-term capital growth | New-build in expansion areas | Energy efficiency, a ten-year structural warranty and lower maintenance may offset the higher tax over long horizons. Appreciation is potential, never guaranteed. |
| Family with children | Spacious resale in Mijas or Alhaurín | More square metres per euro and, if you qualify as a large family, the only realistic route to the 3.5% rate (€250,000 ceiling). |
Andalusia has one of the most moderate tax burdens in Spain for buying a home. The rates are never the problem: finding out about them too late is. Check the Cadastre reference value before you sign the reservation contract and run your numbers with 12–14% built in. That one habit avoids 90% of the nasty surprises.
Frequently asked questions about purchase taxes in Andalusia
How much is transfer tax (ITP) in Andalusia in 2026?
The standard rate of transfer tax in Andalusia is 7% on resale property. Reduced rates exist: 6% for a main residence up to €150,000, and 3.5% for buyers under 35, victims of domestic violence or terrorism and purchases in municipalities at risk of depopulation (up to €150,000), as well as for large families and people with a disability of 33% or more (up to €250,000).
What taxes do you pay when buying a new-build in Andalusia?
You pay 10% VAT (4% on special-regime social housing) plus 1.2% stamp duty. The total tax burden is 11.2%, higher than the 7% transfer tax on resale. On a €320,000 property that comes to €35,840 in tax.
Is transfer tax calculated on the deed price or the reference value?
On whichever is higher. Since 1 January 2022, the taxable base for transfer tax and stamp duty is the Cadastre reference value where it exceeds the deed price. Spain’s Constitutional Court upheld the system in February 2026, in a case that originated from a purchase in Casares (Málaga), while accepting that it can be rebutted with sufficient expert evidence.
How long do I have to pay transfer tax in Andalusia?
Two months from the day after the taxable event, that is, from signing the title deed. This is a deadline specific to Andalusia set out in Law 5/2021, longer than the 30 working days under the state regime. It is settled using Modelo 600 with the Andalusian Tax Agency.
Can I claim the reduced 3.5% rate if I buy in Marbella or Fuengirola?
In practice, almost never. The 3.5% rate requires the property value not to exceed €150,000 (or €250,000 for large families and people with a disability). With average prices of €5,767/m² in Marbella and €5,098/m² in Fuengirola (Fotocasa, Q2 2026), €150,000 buys a studio of under 30 m². On the western Costa del Sol it is wiser to budget for 7%.
What VAT rate applies to social housing (VPO) in Andalusia?
Officially protected housing under the special regime or publicly promoted is taxed at 4% VAT rather than 10%. On stamp duty, VPO purchases may access reduced rates of 0.3%, provided final classification has been granted and the main residence requirements are met.
Who pays the stamp duty on the mortgage?
The bank. Since Royal Decree-Law 17/2018, the taxpayer for stamp duty on mortgage deeds is the lender. Law 5/2019 added that the bank also covers the notary, Land Registry and conveyancing agent costs of the mortgage. The buyer pays only for the valuation and any copies requested.
Who pays the municipal capital gains tax, the buyer or the seller?
By law the seller pays it in a sale. Some sellers try to pass it on to the buyer in the contract: it is negotiable, but there is no obligation to accept. Since Royal Decree-Law 26/2021 there are two calculation methods and the council must apply the more favourable one; where there has been no real increase in land value, nothing is due.
Do sellers aged 65 and over pay tax when selling their main home?
The capital gain is entirely exempt from income tax where the seller is 65 or over and the property has been their main residence for at least three years, with no need to reinvest. However, municipal capital gains tax remains payable: the age exemption applies only to the national tax, unless the local council’s bylaw provides its own relief.
What percentage should I set aside on top of the purchase price?
Between 9% and 11% on resale and between 13% and 15% on new-build, covering taxes, notary, Land Registry, conveyancing agent and legal fees. As a budgeting rule, set aside 12–14%: it covers both scenarios with margin. Remember these costs are not financed by the lender and must be available in cash on completion day.
Do foreign non-resident buyers pay more tax?
No. At the point of purchase, a non-resident pays exactly the same transfer tax, VAT and stamp duty as a Spanish buyer. The differences come later: non-resident income tax on rental income (19% with deductible expenses for residents of the EU, Iceland and Norway; 24% on gross income for everyone else), deemed property income if the home is not let, and a 3% retention on the price when the time comes to sell.
Want the exact figures for your purchase?
At SolProp we check the Cadastre reference value on every property before you sign anything, calculate the full tax bill on your transaction and coordinate the lawyer, conveyancing agent and notary. We work daily with British, German, Nordic and Russian-speaking buyers in Fuengirola, Mijas, Benalmádena, Marbella and Estepona.
If you are still at the orientation stage, start with the ultimate guide to buying property on the Costa del Sol. If your aim is investment, compare areas and yields in our analysis of the best areas to invest in Málaga in 2026. And if you already know where you want to be, browse our listings for property for sale in Fuengirola.
Disclaimer. This article is for information purposes only and does not constitute tax or legal advice. The rates, thresholds and deadlines cited reflect the legislation in force in Andalusia at the date of last update and are subject to change. Always verify your specific circumstances with the Andalusian Tax Agency, the Spanish Tax Agency or a registered tax adviser before filing.
Sources: Law 5/2021 of 20 October on Taxes Ceded to the Autonomous Community of Andalusia; Junta de Andalucía, Regional Ministry of Economy, Finance, European Funds and Social Dialogue (reduced transfer tax and stamp duty rates); Andalusian Tax Agency (Modelo 600 and reference value); Law 11/2021 on the prevention of tax fraud; Royal Decree-Law 26/2021 (municipal capital gains tax); Royal Decree-Law 17/2018 and Law 5/2019 (stamp duty and mortgages); Law 38/2022 (Temporary Solidarity Tax on Large Fortunes); Constitutional Court judgment of February 2026 on the reference value; Fotocasa Property Index, Q2 2026. Last updated: 24 July 2026.
