Catalonia no longer has a flat 10% ITP rate. Since 27 June 2025, a progressive band system applies. How it works, what you pay at different purchase prices, and why many online calculations are out of date.
Search for “ITP Catalonia” in 2026 and you will still find explanations that treat the rate as a simple 10%.
That has not been correct since 27 June 2025.
On that date, Decret llei 5/2025 came into force. Catalonia moved from a single flat rate to a progressive band system — similar in structure to income tax. Buyers purchasing above €600,000 now pay a higher percentage on the portion above that threshold. That matters because many properties on the Costa Brava now exceed that figure.
For international buyers in the Baix Empordà — where prices of €500,000 and well above are common — this makes a measurable difference to the total cost of purchase.
The mistake is not that buyers forget ITP. The mistake is that they apply an old rate to a new structure.
ITP stands for Impuesto sobre Transmisiones Patrimoniales. It is the Spanish transfer tax payable on most resale property purchases. It applies only to existing properties: buyers of new-build homes pay VAT (IVA, 10%) and stamp duty (AJD) instead of ITP.
ITP is a regional tax. Each autonomous community in Spain sets its own rate, which is why the tax burden on the same property can differ significantly depending on location.
The tax is paid by the buyer — not at the notary, but via a declaration submitted to the Agència Tributària de Catalunya (ATC) within 30 working days of signing the escritura.
Until 27 June 2025, Catalonia applied a flat rate of 10% on the full purchase price (11% on properties above €1 million).
That system has been replaced by a cumulative band structure:
| Property value | ITP rate on that portion |
|---|---|
| €0 to €600,000 | 10% |
| €600,001 to €900,000 | 11% |
| €900,001 to €1,500,000 | 12% |
| Above €1,500,000 | 13% |
Important: the rates apply per band, not on the full purchase price. Like income tax, the first €600,000 is always taxed at 10% — even when the property costs €900,000.
Five examples based on the current band structure. Each row shows how much falls into each band:
| Purchase price | 10% (€0–€600,000) | 11% (€600,001–€900,000) | 12% (€900,001–€1,500,000) | 13% (>€1,500,000) | Total ITP | Eff. rate |
|---|---|---|---|---|---|---|
| €400,000 | €40,000 | — | — | — | €40,000 | 10.00% |
| €600,000 | €60,000 | — | — | — | €60,000 | 10.00% |
| €800,000 | €60,000 | €22,000 | — | — | €82,000 | 10.25% |
| €1,000,000 | €60,000 | €33,000 | €12,000 | — | €105,000 | 10.50% |
| €1,600,000 | €60,000 | €33,000 | €72,000 | €13,000 | €178,000 | 11.125% |
For the bank, ITP is not part of the mortgage. Non-residents are generally required to pay this tax entirely from their own funds — on top of the equity contribution already needed for the mortgage itself.
This is why an incorrect ITP calculation feeds directly into an underestimated equity requirement. A buyer who estimates €80,000 ITP on an €800,000 property instead of €82,000 is short by €2,000. A buyer who applies the highest band to the full purchase price and arrives at €88,000 has overcalculated by €6,000 — a different kind of error, but equally relevant when finalising a budget.
More on how banks assess the equity position of non-residents: LTV for non-residents in Spain and financing a second home in Spain.
There are two common mistakes.
The first: applying the old flat rate of 10%. A buyer who estimates ITP at 10% on an €800,000 property expects €80,000. The correct figure is €82,000 — a €2,000 shortfall. Not dramatic, but an unwelcome surprise when a budget is tight.
The second, and more frequently made error: applying the highest applicable band to the full purchase price. A buyer who sees that €800,000 falls into the 11% band and calculates 11% × €800,000 = €88,000 is €6,000 too high. The system is cumulative: only the portion above €600,000 is taxed at 11%, not the entire purchase price.
These are not edge cases. For a property of €800,000 in the Baix Empordà — a very common purchase price in towns such as Palafrugell, Begur or Llafranc — the difference between a correct and an incorrect calculation runs to thousands of euros.
ITP is set regionally. For context:
| Region | ITP rate |
|---|---|
| Madrid | 6% (flat) |
| Andalusia | 7% (flat) |
| Valencia | 10% (flat) |
| Catalonia | 10–13% (progressive, from June 2025) |
For buyers weighing up the Costa Brava against the Costa del Sol or Madrid, this is a real cost difference. On an €800,000 property, ITP in Madrid is €48,000; in Catalonia it is €82,000 — a gap of €34,000. That difference alone does not determine which region is the better choice. It does show why transfer tax needs to be factored into the budget from the start.
Large property holders (gran tenedor): buyers who own more than 10 residential properties in Catalonia — or more than 1,500 m² of residential floor area, or 5 or more residential properties in designated stressed housing market zones — pay ITP at 20%. Garages and storage units are excluded from the count.
Buyers aged under 35: buyers aged under 35 who have a taxable base (IRPF, general base plus savings base, minus personal and family allowances) not exceeding €36,000, and who are purchasing a principal residence, pay 5% ITP. The property must be used as the buyer’s main residence for a minimum of three years. For international buyers who are not Spanish tax residents, additional conditions may apply — verification with a local gestoría is advisable.
New-build properties: no ITP applies. Instead, buyers pay VAT (IVA, 10%) and stamp duty (AJD, 1.5% in Catalonia). For certain commercial transactions involving a waiver of VAT exemption, Decret llei 5/2025 raised AJD from 2.5% to 3.5% — this does not affect most private residential purchases.
For non-resident buyers, the standard progressive band rates apply. There are no separate ITP rates based on residency status.
After signing the escritura, the buyer has 30 working days to file and pay the ITP declaration at the Agència Tributària de Catalunya, using modelo 600. Late payment incurs interest charges.
In practice, the gestoría — the Spanish administrative office that typically handles the post-completion paperwork — files the declaration on the buyer’s behalf.
Almost every buyer knows that transfer tax exists. The issue is rarely that ITP gets overlooked. The issue is that buyers calculate it using outdated rates.
ITP calculations are not tax advice — that is not what we do. But getting the costs right, early in the process, is part of a well-run purchase.
We monitor whether all cost elements are correctly accounted for in the buyer’s budget, and whether the information between buyer, lawyer, bank and gestoría is consistent.
A full breakdown of the closing costs involved in buying property in Spain — including ITP, notary, registration and mortgage costs — is in closing costs when buying property in Spain.
→ Cost of buying property in Spain: what money you need, and when
→ Full guide: Buying property in Spain as a non-resident
Questions about your situation? Send us a message via the contact form. We respond within one working day.
Questions about your buying process? Email us at [email protected]. We reply within 24 hours on business days, in your language.
