Anyone buying an existing property in Andalusia from 2027 onwards will pay less Impuesto sobre Transmisiones Patrimoniales (ITP), the Spanish equivalent of our registration tax/sales tax. The standard rate is falling from 7% to 6.75%, and the thresholds for the reduced rates are rising. That announced Carolina España, Third Vice-President and Minister for the Economy, Finance and European Funds, addressed the Andalusian Parliament on 24 September 2026.
For Belgian and Dutch buyers on the Costa del Sol, the Costa de la Luz or inland, the reduction in the standard rate is of particular importance. This is because the reduced rates are linked to the purchase of the vivienda habitual, the buyer’s main place of residence.
The measures
The ITP rates for property are set out in the Law 5/2021 of 20 October on Transferred Tax Powers of the Autonomous Community of Andalusia: the standard rate set out in Article 41, the reduced rates for housing policy set out in Article 43. The announced changes:
| Rate | Who | Today | From 2027 |
|---|---|---|---|
| Standard rate | Any buyer of an existing house or other property | 7% | 6,75% |
| Reduced rate 6% | Purchase of the main residence | property value up to 150,000 euros | property value up to 200,000 euros |
| Super-reduced rate 3.5% | Principal residence for buyers under the age of 35, victims of gender-based violence or terrorism, and residents of local authorities at risk of depopulation | property value up to 150,000 euros | property value up to 200,000 euros |
| Super-reduced rate 3.5% | Main residence for people with disabilities and large families | property value up to 250,000 euros | property value up to 300,000 euros |
The Junta intends to reduce the standard rate by 0.25 percentage points each year thereafter, down to 6% by the end of the legislative term. It estimates that in 2027, around 146,500 buyers will benefit from the measures, of whom around 138,000 will benefit from the lower standard rate.
This measure applies only to existing properties. The purchase of a new-build property from a property developer is subject to VAT (IVA, 10% for residential properties) and stamp duty (AJD), but not to ITP.
Not yet law: when will it come into force?
This is a political announcement, not an adopted text. The Junta intends to incorporate the changes into the 2027 budget of the Autonomous Community of Andalusia (Budget of the Autonomous Community of Andalusia for 2027). That Budget Act, or an accompanying tax act, must first be approved by the Andalusian Parliament and published in the BOJA.
The exact date of entry into force has therefore not yet been determined. The announcement merely states that the reduction will apply from 2027. For the ITP, the date of the transfer applies; in practice, this is the date of the notarial deed (escritura pública). A deed that is still executed in 2026 will be subject to the current rates.
What does this mean for Belgian and Dutch buyers?
Second stay. Anyone who buys a holiday home in Andalusia whilst retaining their tax residence in Belgium or the Netherlands is not buying a vivienda habitual. For that buyer, only the standard rate applies, which falls from 7% to 6.75%: a saving of 250 euros per 100,000 euros of purchase price.
Permanent move. Anyone who settles in Andalusia and purchases a property as their main residence may, subject to the conditions set out in Article 43 of Law 5/2021, claim the rate of 6% or 3.5%. The age limit of 35 and the status of a large family or a person with a disability remain decisive factors.
| Example | ITP today | ITP from 2027 onwards | Difference |
|---|---|---|---|
| Holiday home, 300,000 euros | 21,000 euros (7%) | 20,250 euros (6,75%) | 750 euros |
| Holiday home, 500,000 euros | 35,000 euros (7%) | 33,750 euros (6,75%) | 1,250 euros |
| Principal residence, 190,000 euros | 13,300 euros (7%) | 11,400 euros (6%) | 1,900 euros |
| Principal residence of a buyer under 35, 190,000 euros | 13,300 euros (7%) | 6,650 euros (3.5%) | 6,650 euros |
The examples are based on a taxable base equal to the purchase price. If the price is below the reference value (valor de referencia) from the Catastro, the ITP is calculated on the basis of that reference value.
Timing. A buyer negotiating a deal today may wish to consider having the notarial deed executed after the Budget Act comes into force. Weigh up the savings against the risks of delay: the terms of the preliminary agreement (contrato de arras), funding and the risk that parliamentary proceedings may be delayed or that the text may be amended.
In conclusion
The reduction is modest for those buying a second home: 0.25 percentage points in 2027, with a announced path towards 6%. Those settling in Andalusia can save considerably more thanks to the higher thresholds. Until the 2027 Budget Act has been approved and published, the current rates will continue to apply.
Confianz assists Belgian and Dutch buyers with the purchase of property in Spain, from the preliminary contract through to the notarial deed and the ITP declaration. Are you planning to buy a property in Andalusia? Please contact contact Get in touch with us; we’ll work out which rate applies to your purchase and the best time to sign the deed.
