Published in Legal
Key tax changes for real estate investors in Andalusia from 2026
New Andalusian tax rules from 2026 reshape the reduced 2 percent ITP for property investors, while Marbella remains one of Spain’s most resilient and attractive real estate markets.
The Andalusian Budget Law for 2026, approved in late 2025, refines the reduced 2 percent Impuesto sobre Transmisiones Patrimoniales (ITP) rate available to professional real estate operators buying property for resale.
From 1 January 2026, two conditions apply. First, the reduced 2 percent ITP rate will only apply to properties with a declared purchase value of up to €500,000 per unit, including any annexes such as parking spaces or storage rooms. Second, the maximum period allowed to resell the property in order to keep that reduced rate will be shortened from five years to two.
Any acquisition above €500,000 will still be perfectly legal and straightforward, but it will be taxed at the standard Andalusian ITP rates rather than the reduced 2 percent reserved for professional resale activity.
Transactions completed up to 31 December 2025 continue to fall under the existing rules.
A change that rewards clarity and professionalism
Seen in context, this is not a restriction on investment but a refinement of how tax incentives are applied. The €500,000 threshold is simply a dividing line: below it, professional operators can still benefit from the reduced ITP provided they resell within two years; above it, the market operates under the standard tax regime.
In Marbella, where many properties exceed that level, investment decisions are already driven less by transfer tax mechanics and more by fundamentals such as location, design, scarcity and international demand. The new rules formalise that reality rather than disrupt it.
The shorter resale window also reflects how the most effective operators already work in prime markets, focusing on clear pricing, fast absorption and product that matches current buyer demand.
Why Marbella continues to attract capital
Marbella sits at the heart of one of Spain’s most international residential markets. The Costa del Sol continues to register one of the highest shares of foreign buyers in the country, with Marbella, Benahavís and Estepona leading activity in the province of Málaga. This depth of demand underpins liquidity, even at higher price points.
At the same time, supply in prime locations remains structurally limited. The growth of branded residences and serviced residential concepts is reinforcing Marbella’s global positioning and drawing in buyers who prioritise quality, lifestyle and long term value over short term tax efficiency.
How investors can position themselves from 2026
The new framework encourages clearer segmentation:
Properties priced at €500,000 or below can still benefit from the reduced 2 percent ITP, provided they are resold within two years. This supports professional, high turnover strategies in well selected micro locations.
Properties priced above €500,000 fall under the standard ITP regime, placing greater emphasis on capital appreciation, buyer liquidity and product differentiation, all areas where Marbella remains exceptionally strong.
In both cases, the rules favour decisiveness and quality rather than speculation.
