Effective June 27, 2025, the ITP system will shift to a progressive tax structure —making it essential for buyers to be well-informed before signing. In this article, we break down what ITP is, who pays it, the new tax brackets, and how payments are handled.
Watch our latest video: What You Need to Know About the New ITP Tax in Catalonia
What is the ITP tax and who pays it?
ITP (Impuesto sobre Transmisiones Patrimoniales) is a property transfer tax applied when purchasing resale properties in Spain. It is:
Paid by the buyer.
Due at the time of signing the public deed (escritura pública) at the notary.
In some cases, a different tax regime may apply. This is especially relevant for:
Buyers classified as large property owners (owning more than five residential properties).
Companies whose primary activity is related to real estate investment or development.
New itp tax brackets in catalonia
The Catalan government has introduced a progressive ITP tax model. This means that different portions of the property value are taxed at increasing rates. These changes will come into effect on June 27, 2025, and will apply to all resale property transactions in the region.
Updated tax brackets:
Property Value Band | Applicable ITP Rate
Up to €600,000 → 10%
€600,000 – €900,000 → 11%
€900,000 – €1,500,000 → 12%
Over €1,500,000 → 13%
How is the ITP paid?
Before completing a transaction, the buyer's chosen notary will issue a "provision of funds” a document outlining all costs related to the purchase, including:
ITP tax
Notary fees
Land registry fees
This document ensures transparency and helps buyers plan their total financial commitment. The ITP must be paid within 30 days of signing the deed, and the payment is usually handled by:
The notary, or
The buyer’s personal accountant
Example: how much will you pay?
Here’s a simplified breakdown of the ITP on a €1,000,000 property in Catalonia:
First €600,000 taxed at 10% = €60,000
Next €300,000 taxed at 11% = €33,000
Remaining €100,000 taxed at 12% = €12,000
Total ITP due: €105,000
This represents an effective average tax rate of 10.5%.
Final thoughts
Whether you’re investing, relocating, or buying a second home, understanding the evolving tax landscape is essential for accurate budgeting and planning. At Lucas Fox, our multilingual property experts are here to guide you through every step of the process, from tax planning to property selection.
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