The ITP (Impuesto de Transmisiones Patrimoniales) is the tax paid when purchasing a second-hand property (it does not apply to new builds, which are subject to IVA (VAT) and a different kind of stamp duty called AJDStamp Duty (AJD, El impuesto de Actos Jurídicos Documentados) is payable when purchasing a newly built property in Spain, along with IVA (VAT), unlike the purchase of a second-hand property, where the... More). The amount varies depending on the regional government (comunidad autónoma), but it typically ranges from 6% to 10% of the property’s purchase price—or, if higher, its official cadastral reference value.
In most cases, your estate agent or mortgage broker will handle the payment on your behalf (especially if you are taking out a mortgage). If you need to manage it yourself, you have 30 days from the date of purchase to submit form 600 to the tax office, along with proof of payment (usually a bank transfer or direct debit).
If the cadastral reference value is higher than the purchase price, you’ll be required to pay ITP based on the higher amount. This rule was introduced by the authorities to combat tax fraud. However, if you have valid reasons why the sale price is lower than the reference value, you can file a claim with the Tax Agency to request a reassessment of the taxable base for ITP.
