Property Transfer Tax
Property Transfer Tax (ITP) in Spain
What Foreign Buyers Must Know
The Property Transfer Tax (Impuesto de Transmisiones Patrimoniales, ITP) is a key tax payable when purchasing a second-hand property in Spain. For international buyers, understanding this tax is essential to avoid mistakes and unexpected costs.
At Fuster & Associates, we offer expert advice to help you comply correctly with this tax obligation, optimizing your payments and preventing legal issues with the Tax Authorities.
What is the Property Transfer Tax?
The ITP is a regional tax applied to the purchase of second-hand homes in Spain. The tax rate varies depending on the autonomous community, the property’s value, and the buyer’s profile.
This tax is paid only once, when formalizing the purchase, and represents one of the most significant costs when acquiring a used property.
Who is Obliged to Pay the Property Transfer Tax?
Residents and Non-Residents
All buyers of a second-hand property, whether residents or non-residents, are required to pay this tax. This includes:
- EU and non-EU citizens
- Individuals or legal entities
- Buyers of residential or commercial properties
- Investors purchasing properties for rental purposes
Fiscal residency does not exempt payment of the ITP, although it may influence eligibility for tax benefits or regional reductions.
Requirements and Necessary Documentation
To correctly settle the ITP, it is essential to have the following documentation:
Purchase deed
Buyer’s ID, NIE, or passport
Property’s cadastral reference number
Declared value of the property
Form 600 (official self-assessment tax form)
Proof of tax payment
At Fuster & Associates, we handle the preparation and submission of all these documents for you, quickly and securely.
Property Transfer Tax Process
Step by Step
1. Calculation of the ITP based on the actual or fiscal value of the property
2. Preparation of Form 600 (mandatory form)
3. Payment of the tax at an authorized bank or online
4. Submission of the form and proof of payment at the relevant Tax Office
5. Obtaining the fiscal stamp required to register the property
Common Mistakes and How to Avoid Them
Some frequent errors among international buyers include:
- Declaring a value lower than the property’s real value
- Submitting Form 600 after the deadline (deadline is 30 working days)
- Not knowing which tax rate applies in their autonomous community
- Forgetting to register the proof of payment with the Property Registry
Our legal team prevents these mistakes through comprehensive tax support, tailored to your case and region.
Benefits of Professional Advice from Fuster & Associates
Correct settlement of ITP according to regional regulations
Avoidance of penalties, interest, or supplementary charges
Personalized advice in your language
Saves time and reduces administrative stress
Representation before the Tax Agency
Let Us Handle the Process for You!
At Fuster & Associates, we have a team of immigration experts with extensive experience in processing the Spanish Income Tax Return. We know how to avoid common mistakes in document submission, ensuring that each application meets all the necessary requirements to maximize the chances of approval. From document collection to filing appeals in case of denial, we handle everything so you can enjoy your new life in Spain stress-free.
If you are planning to settle in Spain in areas such as San Juan de los Terreros, Pulpí, Los Alcázares, La Zenia, Teulada, and Finestrat, our firm has strategically located offices to provide you with a personalized and close service. We have in-depth knowledge of the consular and administrative procedures specific to each region, ensuring a smooth and efficient process.
At Fuster & Associates, our team of immigration specialists will support you at every stage of the process to guarantee a successful application. From document preparation to handling appeals, we take care of everything so you can start your new life in Spain with peace of mind.
✉️ Contact us today and start living your new life in Spain with all the legal peace of mind you need.
FAQS
Frequently Asked Questions
When is the ITP paid?
The payment and filing deadline for the ITP depends on the autonomous community where the property is located. It is generally around 30 days after signing the purchase deed.
What tax rate applies to the ITP?
It depends on the autonomous community and the type of property. It ranges from 6% to 10%, although reductions may apply.
Does the ITP apply to new homes?
No. Residents from outside the EU/EEA (including the UK) cannot deduct expenses and are taxed on the gross income.
Can I finance the payment of the ITP?
Not directly, but it can be included in the mortgage financing calculation if agreed with your bank.