The Catalan government recently increased the transfer tax (Impuesto sobre Transmisiones Patrimoniales, ITP) increased. For foreign investors, real estate in Catalonia becomes less attractive, although the impact for the average Belgian and Dutch buyer will be limited. These changes will take effect from 27 June 2025.
Regular progressive rates
For private buyers of existing homes in Catalonia, ITP rates are now set progressively based on the purchase price.
- 10% For homes up to €600,000.
- 11% for the part of the price between €600,000 and €900,000.
- 12% For the part between €900,000 and €1,500,000.
- 13% For amounts above €1,500,000.
There is a flat rate of 5% for the purchase of the owner-occupied family home, provided the buyers are not more than 35 years old.
Specific rates for investors
Specific measures have been taken to discourage investors.
- 20% rate for buyers who own more than five or 10 properties, depending on the specific region within Catalonia.
- 20% rate for the purchase of entire residential buildings. An exception applies to buildings with up to four residential units intended for owner-occupation.
So if you buy a fully residential building as an individual, the regular rates will apply provided the building has a maximum of four residential units and you will live there yourself.
However, a 50% tax reduction does apply if the building is given an office function. Besides, certain renovation projects of commercial property with rezoning to residential property can also enjoy this reduction.
Comparison with previous transfer tax rates in Catalonia
Previously, Catalonia applied a standard ITP rate of 10%, with an increased rate of 11% for homes above a certain value.
Learn more about the cost of buying a property in Catalonia here.
Transfer tax in Catalonia and impact on property market
These tax changes can have various consequences.
- Private buyers: For those buying homes in lower price brackets, the tax burden remains relatively stable. However, for more expensive homes, the tax may be significantly higher. We also expect only a limited impact for Belgians and Dutch.
- Investors: The increased rates may discourage investors from acquiring multiple properties. This is in line with the objective of making property more affordable for local people.
Learn more about how to prepare for a purchase in Catalonia here.
