Andalucía Plans Lower Property Transfer Tax from 2027

On 24 September 2026, Carolina España outlined the planned changes in the Andalusian Parliament. The package is intended for the 2027 regional budget and combines a lower general ITP rate with wider access to existing reduced rates. ITP is the transfer tax normally paid by the buyer of a resale home. [3]

The reduced-rate categories have eligibility conditions. The figures above summarise the announcement alongside the current rules; they are not a statement that the 2027 changes are already in force. [2] [5]

The sources reviewed describe a measure intended for the 2027 budget. We have not identified an enacted provision bringing the 6.75% rate into force as of 28 September 2026. The prudent wording is therefore “planned for 2027”. The final published legislation will determine commencement, scope and any transitional rules.

The underlying Málaga Hoy report was published on 24 September 2026. That is the announcement date, even where a later article or newsletter reports the same story. A publication date does not itself establish when a tax change takes effect. [1]

The proposed first step is a reduction of 0.25 percentage points. The calculation is straightforward: taxable value multiplied by 0.0025. These are our calculations comparing the existing general rate with the announced rate, assuming the same taxable value and no reduced rate or exemption.

For a €2.5 million taxable value, the difference would be €6,250. This is a reduction in one purchase cost. It is not a discount on the property price, and it does not include legal fees, notary fees, registration or financing costs.

The announcement sits within a commitment to reduce the general rate by a quarter of a percentage point annually until it reaches 6%. Applying that stated pace produces the following illustrative path. The later years are an implied trajectory, not a schedule of enacted tax rates. [1]

If the general rate eventually reached 6%, the difference against 7% would be €10,000 on a €1 million taxable value, or €25,000 on €2.5 million. Those are hypothetical comparisons, not savings available to a buyer today.

No. The announcement concerns qualifying main residences. It would increase the value ceiling for the existing 6% category from €150,000 to €200,000. A holiday apartment or investment property does not qualify simply because its price falls below that figure. [2]

The 3.5% categories cover specified circumstances, including younger buyers and certain protected groups. The reported proposal raises the relevant general ceiling to €200,000 and the disability and large-family ceiling to €300,000. Eligibility and the final wording still matter. [2]

Under the current law, thresholds concern the value of the whole property, with jointly acquired garages or annexes potentially included. Buying a share does not automatically reduce the property value used to test eligibility. Buyers should have their adviser check both the property and their personal circumstances. [5]

For ITP, the agreed purchase price is not always the tax base. Where a cadastral reference value exists, a higher reference value can determine the taxable amount. If the declared value or agreed price is higher, the higher relevant figure is used. Where no reference value exists or can be certified, different valuation rules apply. [6]

For example, if a home costs €950,000 but its applicable reference value is €1 million, the comparison would be €70,000 at 7% versus €67,500 at 6.75%, assuming that €1 million is the correct tax base. This is why an estimate should start with a valuation check, not just an asking price.

A first delivery of a new home by a developer normally falls under VAT rather than resale ITP. Spain’s general VAT rate for these homes is 10%, with special exceptions. Andalucía’s general AJD stamp duty rate is currently 1.2%, where applicable. [7] [4]

The announced ITP reduction should therefore not be applied to a new-development budget. On a straightforward purchase with a €1 million price and matching AJD base, 10% VAT plus 1.2% AJD would total €112,000 before other costs. Plots, commercial property and unusual transactions need their own tax assessment.

The existing general ITP rule is not restricted to Spanish nationals. For an ordinary resale home in Andalucía, nationality alone does not create a separate general rate. The regional rules relate to the location of the property; reduced main-home categories are a separate eligibility question. [5] [8]

For a buyer comparing Nueva Andalucía, the Golden Mile and Benahavís, the useful exercise is to ask for a complete purchase budget for each shortlisted home. Include the correct tax base, professional costs, any financing requirements and expected ongoing expenses. A lower tax estimate only helps if the rest of the purchase still works for you.

The announcement alone is not a reason to delay a suitable purchase. At a €1 million taxable value, the first proposed reduction is €2,500. A change of just 0.25% in the price is the same amount, before considering rent, finance, currency movements or whether the property remains available. This is a comparison of scale, not a prediction of prices.

If a transaction may fall near a change in the law, ask your lawyer to establish the relevant tax point and check the final commencement rules before agreeing the timetable. Do not assume that a later notary appointment automatically secures a lower rate. Current regional guidance ties accrual to the taxable act or contract. [4]

• Is the transaction subject to resale ITP or VAT and AJD?
• What taxable value applies, including any cadastral reference value?
• Does the buyer qualify for a reduced rate?
• Which rules apply on the relevant tax date?
• What is the full acquisition budget, including professional and financing costs?

ITP is generally dealt with through Modelo 600. Andalucía’s published filing and payment period is two months starting from the day after the taxable event; have your adviser confirm the date for your transaction. [8]

At Vantage Marbella, we can help you compare homes and understand how the purchase process fits your plans. For the tax calculation, work with your independent lawyer or tax adviser using the details of the specific property. A clear budget makes it easier to focus on the home that is right for you.

Explore Vantage Marbella and speak with our team about your property search.

This article provides general information based on sources reviewed on 28 September 2026. Announced changes remain subject to legislation. It is not individual tax or legal advice.

1. Málaga Hoy, 24 September 2026: announcement and phased reduction
2. EFE, 24 September 2026: proposed reduced-rate thresholds
3. Europa Press, 24 September 2026: parliamentary announcement
4. Junta de Andalucía: current ITP and AJD guidance
5. Consolidated Andalusian Law 5/2021, articles 41 and 43
6. Agencia Tributaria de Andalucía: reference value
7. Agencia Tributaria: VAT or ITP when buying a home
8. Agencia Tributaria de Andalucía: filing obligations