In short. On 24 September 2026 the Junta de Andalucía announced that the general rate of ITP, the transfer tax on resale homes, will fall from 7% to 6.75% in the 2027 budget. The stated plan is a further quarter point each year until the rate reaches 6%. On a €3 million resale the first step saves €7,500. The full path to 6% would save €30,000 on the same purchase, and it lowers the cost for whoever buys the property from you later. New builds are unaffected, because they carry IVA.
What was announced
Carolina España, Andalucía’s vice-president and minister for the economy and finance, presented the change to a committee of the Andalusian Parliament. The 2027 budget lowers the general ITP rate by 0.25 points, and the government has committed to cutting it by the same amount each year until the end of the legislature.
| Today | 2027 (planned) | Stated target | |
|---|---|---|---|
| General ITP rate, resale homes | 7% | 6.75% | 6% |
| New builds (IVA) | 10% | 10% | unchanged |
Source: Junta de Andalucía, 24 September 2026. The measure also raises the price caps for the reduced rates on a buyer’s habitual residence to €200,000, which is not relevant at the price levels discussed here.
What it means at the €1m to €5m level
| Resale price | ITP at 7% | At 6.75% (2027) | At 6% (target) | Saving at target |
|---|---|---|---|---|
| €1,000,000 | €70,000 | €67,500 | €60,000 | €10,000 |
| €2,000,000 | €140,000 | €135,000 | €120,000 | €20,000 |
| €3,000,000 | €210,000 | €202,500 | €180,000 | €30,000 |
| €5,000,000 | €350,000 | €337,500 | €300,000 | €50,000 |
The tax is charged on the higher of the agreed price and the Catastro’s valor de referencia. At the top of the market the agreed price is almost always the higher figure, so the table holds.
The part most commentary misses: your exit
Owners on the Costa del Sol rarely think about ITP after they have paid it. They should, because ITP is paid by the buyer, and one day that buyer is buying from you.
If the rate reaches 6%, the person who buys your €2 million villa in eight or ten years pays €120,000 in transfer tax rather than €140,000. That won’t set the price, but it lowers the friction on every resale in the region. In a market where most owners eventually exit through a resale, lower transaction costs are a structural positive for liquidity. It also narrows the gap between buying an existing home and buying new, where the buyer pays 10% IVA plus stamp duty.
I wouldn’t pay more for a property because of this. I would count it as one more reason why Andalucía’s resale market is easier to enter and leave than it was five years ago.
Timing a purchase around New Year
ITP falls due on the day you sign the escritura before the notary. Reserving a property or signing a private purchase contract in December does not lock in the 7% rate, and completing in January should mean paying 6.75%.
On a €3 million purchase the difference is €7,500. If completion is genuinely flexible, it is worth aligning the notary date with your lawyer. It is not worth risking the property: at this level, the negotiation on price is measured in tens or hundreds of thousands, and a seller with another buyer won’t wait for your tax saving.
What could change
The first cut sits in the draft 2027 budget, which must still pass the Andalusian Parliament. Each later step to 6% needs its own budget, so the target is a commitment, not law. I plan purchases on the rate that applies on the day of signing, and treat the rest as upside.
My view
A quarter point changes nobody’s decision. The signal matters more. Andalucía replaced its 8% to 10% bands with a flat 7% in 2021, has now cut again, and has set a public target of 6%. For international buyers comparing Spanish regions, that consistency is worth more than any single reduction.
For the full cost picture beyond ITP, including notary, registry, legal fees and running costs, see what it really costs to buy property in Marbella. Plexo Properties has a buyer-focused summary with savings from €300,000 upwards: Andalucía cuts property transfer tax to 6.75% from 2027.
Frequently asked questions
Does the cut apply to non-residents?
Yes. The general ITP rate applies to anyone buying a resale home in Andalucía, whether or not they live in Spain.
Does it affect new builds?
No. New homes bought from a developer carry 10% IVA and stamp duty, not ITP.
When does it take effect?
From 1 January 2027, if the budget passes. The date that counts is the date you sign the escritura.
Will ITP really reach 6%?
That is the government’s stated plan, a quarter point a year. Each step depends on a future budget.
Mikael Hansen is the founder of Plexo Properties and a GIPE member based in Mijas. This article is general information, not tax or legal advice. Figures checked 25 September 2026.