Andalucía Property Transfer Tax 2027: Proposed ITP Cut

Andalucía has announced plans to reduce the general property transfer tax (ITP) on resale homes from 7% to 6.75% in 2027. For a buyer purchasing a 1.000.000€ resale villa in Marbella, that would mean a potential saving of 2.500€, provided the taxable value is 1.000.000€ and the new rate takes effect as proposed.

The change has been announced for the region’s 2027 budget. It is not yet the rate in force: as of September 2026, Andalucía’s general ITP rate remains 7%. Buyers should budget using the rules applicable when their purchase completes, and confirm the final position with their lawyer.

How much would buyers save?

The proposed reduction is 0.25 percentage points. That means a saving of 250€ for every 100.000€ of taxable value compared with the current 7% general rate.

Illustrations assume the stated amount is the taxable base and that the general rate applies. The taxable base may exceed the agreed purchase price if, for example, the property’s cadastral reference value is higher.

For buyers looking at established villas in Marbella, Benahavís or Estepona, the reduction would trim an upfront purchase cost. It is useful, especially at higher prices, but should be weighed alongside the property’s price, condition and overall acquisition costs.

Does the proposed cut apply to new developments?

No. ITP generally applies to purchases of resale homes. A purchase of a newly built home from a developer is generally subject to VAT instead, usually at 10%; other purchase taxes and costs may also apply. This distinction matters when comparing a resale villa with an off-plan apartment on the Costa del Sol.

Are further reductions planned?

The Andalusian government has indicated that it wants to reduce the general ITP rate by a further 0.25 percentage points each year, reaching 6% by 2030. That is a stated policy objective, not a set of rates buyers can assume are already enacted. Each future step depends on the relevant legislation.

There are also proposals to raise the property-value ceilings for certain existing reduced ITP rates. Reported plans include raising the ceiling for the 6% rate on qualifying main residences from 150.000€ to 200.000€, raising the usual 3.5% category ceiling to 200.000€, and raising the ceiling for qualifying people with disabilities and large families to 300.000€. These benefits have separate eligibility rules; they do not automatically apply to second homes or investment purchases.

What should buyers do now?

If you are considering a resale property in Marbella or elsewhere on the Costa del Sol, ask your lawyer to calculate ITP on the correct taxable base, check whether you qualify for a reduced rate, and confirm which rate will apply on completion. The Spanish cadastral reference value can affect that calculation: if it exceeds the agreed price, it can set a higher tax base.

At Dallimore Marbella, we help buyers compare resale and new-build opportunities and understand the full purchase budget before making an offer. Tell us the areas and type of home you are considering, and we can help you build a shortlist with the likely acquisition costs in mind.

Speak to our team

This article reflects proposals reported on 28 September 2026 and general tax rules at that date. It is general information; obtain transaction-specific tax advice before purchasing.