Transfer tax on resale homes in Spain: what buyers actually pay

Transfer tax, known in Spain as ITP (Impuesto de Transmisiones Patrimoniales), applies when you buy an existing home rather than a new build. Each autonomous region sets its own rate and its own reduced rates for particular buyer profiles, so the figure that applies to a resale purchase in Spain is decided by the regional government and can change from one year to the next. There is no single national rate to quote, which is why we always tell clients to have the exact percentage confirmed for Spain before they fix a budget.

ITP is only one line in the total cost of buying. Notary fees, land registry fees, gestoría charges and the bank's valuation of the property all sit alongside it, and each is calculated separately. Together these costs, plus ITP, are what a non-resident buyer needs to plan for in addition to the price agreed with the seller.

The tax treatment depends on whether the home has been lived in before. A resale property is taxed through ITP, at the rate set by the region covering Spain. A new build, sold for the first time by a developer, is taxed differently: 10% VAT plus a regional stamp duty, rather than ITP. Knowing which category your target property falls into is the first step to estimating costs correctly.

Buyers sometimes assume the same percentage applies everywhere in Spain. It does not. The regional government responsible for Spain publishes its own ITP rate and any reduced rates, for example for certain buyer profiles, and these details should be checked directly rather than taken from a general guide.

Notary fees cover the deed of sale and are set by official scale according to the price and complexity of the transaction. Land registry fees record your ownership and are also scale-based. A gestoría typically handles the paperwork, tax filings and registration on your behalf, for an agreed fee. If you are using a mortgage, the bank will also charge for a valuation of the property, carried out by an independent surveyor it appoints.

None of these costs replace ITP; they are additional and are paid at different points in the process, from reservation to completion at the notary. A realistic budget adds them to the price of the home and to the tax itself.

Spanish banks usually ask non-resident buyers for a larger deposit than they would ask a resident; the exact share depends on the bank, your country and your profile. ITP, notary, registry, gestoría and valuation costs come on top of that deposit and cannot normally be financed through the mortgage itself, so they need to be budgeted separately and held in euros, ready for completion.

Since the United Kingdom uses the pound rather than the euro, it is worth building in a margin for exchange-rate movements and conversion costs when transferring funds to cover ITP and the other purchase costs in Spain, not just the price of the home.

Colibrí Finances is a credit intermediary registered with the Bank of Spain (code E480, under Law 5/2019). We compare more than 20 Spanish banks, prepare your file and follow the process through to the notary, attending clients in English. We do not set or collect ITP, but we work alongside the gestoría confirming the rate that applies in Spain, so that the tax and the mortgage are planned together rather than as separate surprises.

Spain has a double taxation agreement with the United Kingdom, and once you own the property you will file an annual non-resident income tax return (Modelo 210); a local tax adviser should confirm how any rental income or future gain is reported to HMRC as well. Note too that the Golden Visa route for property investors ended on 3 April 2025, so it should not be a reason to buy. As a UK citizen you can stay in Spain for up to 90 days in any 180-day period without a visa; longer stays require a visa or residence permit.

Spain is a relatively short flight away from most UK airports, making regular visits to a Spanish property straightforward for owners based in Britain. Many British buyers are drawn to Spain for its climate, coastal lifestyle and established expatriate communities. One practical point to bear in mind is that Spanish inheritance law differs from UK rules, so it is worth taking specific advice on how it may affect the property and one's estate. Currency movements between sterling and the euro can also affect the overall cost of purchase and ongoing expenses.

Spain and the United Kingdom have a double taxation agreement in place, and a local tax adviser should confirm how rental income or gains from Spanish property must be declared and reported to HMRC.

As the United Kingdom is no longer an EU member state, British citizens may stay in Spain for up to 90 days in any 180-day period without a visa, and must apply for a visa or residence permit for longer stays.

Since the United Kingdom uses the pound sterling (GBP) rather than the euro, buyers should factor in exchange-rate movements and currency conversion costs when paying for a property or transferring funds to Spain.