What is the Tax on Patrimonial Transmissions (ITP) in Spain

Real estate:

• Value from 0 to 400.000€ at 8%. 
• Value from 400.000€ to 700.000€ at 9%. 
• Value over 700.000,01 € at 10%. 

Separate garage:

• Value from 0 to 30.000€ at 8%. 
• Value from 30.000,01 € to 50.000,01 € at 9%. 
• Value over 50.000,01 € at 10%. 

Exceptions:

• A reduced rate of 7% applies when the property acquired is intended for the buyer’s permanent residence without its actual value exceeding €130,000.
• A reduced rate of 3.5% is applied when the building acquired is intended for the buyer’s permanent residence under 35 years of age, and whose actual value does not exceed €130,000 or €180,000. When the property acquired is intended for the buyer’s main residence and the buyer is considered to be a disabled person with a degree of disability equal to or greater than 33%.
• A reduced rate of 3.5% is applied provided that the buyer is considered a member of a large family and that the property is intended for the main residence of the family and the real value of the property does not exceed €180,000.

A reduced rate of 2% is applied to the purchase of a property intended for resale by an individual or legal entity engaged in a commercial activity to which the rules of adaptation of the General Plan for the real estate sector apply.

The ITP rate varies between 8% and 10% depending on the value of the property acquired.

Value from 0 to 400,000 euros: 8%.

Value from 400,000 to 450,000 euros: 8.5%. 

Value from 450,000 to 500,000 euros: 9%.

Value from 500,000 to 750,000 euros: 9.5%. 

Value over 750,000 euros: 10%.

Exceptions:

• Large families acquiring a home as their main residence will be entitled to a 50% reduction of the tax liability. 
• Taxpayers under 35 years of age, or with a disability equal to or greater than 65%, and women victims of domestic abuse who acquire a home for their habitual residence with a value of less than 100,000 euros will be entitled to a reduction of 12.5% of the tax liability.

The ITP rate varies between 8% and 10% depending on the value of the property transferred.

Value from 0 to 300,000 euros: 8%.

Value between 300,000 and 500,000 euros: 9%.

Value over 500,000 euros: 10%. 

Exceptions:

• A reduced rate of 3% is applied if the property acquired is under official protection.

The ITP tax rate is 10% on the transfer of real estate.

The following different tax rates will be applied to transfers of dwellings and promises or options to purchase the same, which will constitute the permanent residence of the taxpayer:

Value less than 120,000 euros: 8%. 

Value between 120,000 and 200,000 euros: 9%. 

Value equal to or greater than 200,000 euros: 10%.

Exceptions:A reduced rate of 5% will be applied if the property is intended as the permanent residence of a large family, of a disabled person with a degree of disability equal to or greater than 33% and less than 65%, or of a young person under 30 years of age.

The ITP rate applied is 9%.

Exceptions:

• A reduced rate of 6% will be applied in the acquisition of the taxpayer’s first habitual residence. Provided that the real value of the property does not exceed 180,000 euros and that more than 50% of the purchase is financed with a mortgage. In addition, the real value of the property must be equal to or greater than the value attributed to it in the appraisal made for the purposes of the aforementioned mortgage.

The applicable rate is 8% if the value of the property is less than 250,000 euros; on the excess a rate of 10% will be applied.

Exceptions:

• A reduced rate of 4% applies if the property is intended for the permanent residence of the buyer, a large family or a person with a disability of at least 65%. In these cases, if the buyer owns another property, it must be sold in order to qualify for the reduced rate. This rate also applies if the property is protected by the State, if the buyer is under 36 years of age or if it is the first time that he/she acquires a property.
• An exceptional rate of 0.01% applies if the property is located in a town in Castilla y León with less than 10,000 inhabitants, or 3,000 inhabitants if it is less than 30 kilometers from the provincial capital, and has a value of less than 135,000 euros. In addition, the property must be the first real estate acquisition for a buyer under 36 years of age, and must be intended for permanent residence without exceeding a certain income limit.

The ITP rate applied is 10% when the real value of the property is less than 1,000,000 euros, and 11% when the value is higher.

Exceptions:

• A reduced rate of 7% is applied if the property is considered to be officially protected.
• A reduced rate of 5% is applied if the property is used as the main residence of a large or single-parent family. The reduced rate of 5% is also applicable to taxpayers under 33 years of age, as well as to persons with a disability equal to or greater than 65%.

In order to qualify for the reduced rate of 5%, large families and taxpayers under 32 years of age must meet certain income conditions. The sum of the total taxable income, minus the personal and family minimums, of the members of the family must not exceed 30,000 euros in the last personal income tax return. This amount must be increased by an additional 12,000 euros for each child.

The applicable rate varies between 8% and 11% depending on the value of the property transferred.

Value from 0 to 360,000 euros: 8%. 

Value between 360,000 and 600,000 euros: 10%. 

Value over 600,000 euros: 11 

Exceptions:

• A reduced rate of 7% is applied when the property acquired is intended for the taxpayer’s habitual residence, but its actual value does not exceed 122,000 euros.
• A reduced rate of 6% is applied to the acquisition of real estate intended for the development of a commercial activity or professional business.
• Large families, young people under 35 years of age and taxpayers with a disability equal to or greater than 65% can benefit from a 20% reduction in the tax liability, provided that the property is used as their main residence.

To benefit from the reduced rate of 7%, the total taxable income (general income + savings income) of the purchaser must be less than 19,000 euros if taxed individually, or less than 24,000 euros if taxed jointly, and provided that the total annual income of all the members of the family who will live in the property does not exceed 30,000 euros per year, plus 3,000 euros for each child living with the purchaser.

The general rate applicable is 10% on the transfer of real estate.

Exceptions:

• The general rate is reduced to 7% if the property is intended for the taxpayer’s main residence.
• The general rate is set at 3% if the property is intended for the permanent residence of a taxpayer with a degree of disability equal to or greater than 65% (physical, moral or sensory). This rate also applies to large families and to young people under 36 years of age.

In order to qualify for the reduced rate of 7%, the total assets of the buyer(s) must not exceed 200,000 euros, plus 30,000 euros for each member of the family.

A variable rate is applied depending on the value of the property transferred:

Value from 0 to 400,000 euros: 8%.

Value from 400,000 to 600,000 euros: 9%. 

Value from 600,000 to 1,000,000 euros: 10%. 

Value over 1,000,000 euros: 11%.

 Exceptions:

• Reduced rate of 5% if the value of the property is less than 200,000 euros and it is the taxpayer’s first home.

The general rate is 6.5%.

Exceptions:

• A reduced rate of 4% applies to the transfer of a property that is going to constitute the habitual residence of a large family, of a taxpayer under 35 years of age or of a taxpayer with physical disability. This rate also applies to the transfer of a formally protected dwelling which is to be the purchaser’s first residence.

A general rate of 7% is applied.

Exceptions:

• A reduced rate of 5% applies if the property is intended for the habitual residence of a large family, of a disabled person with a degree of disability equal to or greater than 33% or of a young person under 36 years of age.

The reduced rate of 5% can only be applied to taxpayers whose general taxable income subject to personal income tax does not exceed 18,030 euros in individual taxation or 30,050 euros in joint taxation, and provided that the taxable income from savings subject to taxation does not exceed 1,800 euros.

A general rate of 6% is applied to the transfer of real estate and to the constitution and transfer of real rights (e.g., usufruct) over real estate.

Exceptions:

• A reduced rate of 4% will be applied to the acquisition of a dwelling intended as the main residence of a large family.

A general rate of 8% applies.

Exceptions:

• Transfers of real estate of less than 300,000 euros made by taxpayers considered a large family, taxpayers under 35 years of age and taxpayers with a disability equal to or greater than 65% who acquire a property intended for their main residence, will be taxed at the rate of 3% .

To benefit from the reduced rate of 3%, the general taxable income minus the personal and family minimum must be less than 26,620 euros, provided that the savings taxable income does not exceed 1,800 euros.

A general rate of 6% is applied.

Exceptions:

• Transfers of dwellings will be taxed at 5% , with a maximum limit of 180,304 euros of the value of the property. Provided that the purchaser is a member of a large family, that no member of the family owns the property at the time of purchase and that the property is intended for the habitual residence.

The reduced rate of 5% can only be applied to a maximum taxable base of 180,304 euros. The excess will be taxed at the general rate of 6%.

The general rate is 7%.

Exceptions:

• As an exception to the general rate, the transfer of dwellings (including parking spaces) with a maximum of two units and annexes (located in the same building) that are transferred jointly, are taxed at 4%.
• A reduced rate of 2.5% is applied if the property is intended for the permanent residence of a large family and the surface area of the property does not exceed 120 m2.

The general rate is 10%.

Exceptions:

• It is possible to benefit from a reduced rate of 8% for dwellings subject to official protection, under the general regime, provided that the dwelling is intended as a habitual residence. This rate also applies to taxpayers under 35 years of age who acquire their first home as their main residence.

The reduced tax rate applies if the taxpayer’s total income does not exceed €25,000 (if individual) or €40,000 (if joint) in the previous year.

• A reduced rate of 4% is applied to the acquisition of housing subject to official protection, under a special regime, provided that such housing constitutes the purchaser’s main residence. This rate also applies to large families under certain income conditions. As well as to the acquisition of homes intended for the main residence of taxpayers with a degree of physical disability equal to or greater than 65% or a degree of mental disability equal to or greater than 33%.

This reduced rate of 4% is applicable provided that the sum of the general taxable income and the taxable income from savings of the taxpayer (and of all the persons who will live in the home) corresponding to the immediately preceding tax period does not exceed a total of 45,000 euros.

These are two autonomous cities that do not have autonomous regulations on ITP. As mentioned above, in the absence of autonomous community regulations, the general transfer tax law will be applied with the following percentages:

• 6%, for the transfer of real estate or the constitution and assignment of real rights over real estate.
• 4%, for the transfer of movable property and the constitution of rights in rem thereon.