The Andalusian regional government has announced a reduction of the general transfer tax on property purchases from 7% to 6.75%, with a planned start in 2027. Subsequently, the objective is to progressively reduce the tax rate to 6% by the end of the legislative term.

The announcement was presented by regional president Juanma Moreno on October 5, 2026, and concerns the transfer tax, commonly known as ITP, Impuesto sobre Transmisiones Patrimoniales.

According to the presented plan, the tax rate is to be reduced by 0.25 percentage points annually. With an initial reduction in 2027, the tax rate would thus reach 6% by 2030, provided the plan is implemented. The final timeline and application need to be established through legislation.

Who would be covered by the measure?

The reduction refers to the general tax rate for property transfers covered by the ITP section for transfers for consideration, Transmisiones Patrimoniales Onerosas, TPO. This generally applies to the purchase of second-hand homes and other properties.

The measure would therefore reduce the tax cost for buyers whose acquisitions are subject to the general tax rate. Reduced tax rates and tax exemptions may be applicable in specific situations.

When would the reduction take effect?

According to news agency EFE’s reporting, the first reduction, from 7% to 6.75%, is planned for 2027. The Junta de Andalucía confirms in its official announcement the intention to subsequently continue reducing the tax rate annually to 6% by the end of the legislative term.

This concerns an announced tax change. The announcement itself does not mean that new tax rates have entered into force. The final rules and effective dates need to be confirmed through adopted and published legislation.

The current general tax rate is 7%, unless a reduced tax rate or tax exemption is applicable.

What should buyers consider?

Before a property purchase, it is important to verify which rules apply when tax liability arises. The tax may be affected by, among other things, the nature of the transaction, the value and use of the property, and the buyer’s personal circumstances.

An announced future reduction should therefore not be used as the basis for a final tax calculation before applicable rules and dates have been established.

At Global Accounting, we will follow the legislative process and provide information on decided tax rates, effective dates, and practical consequences for buyers.

Are you considering buying a property in Andalusia?

Our team will gladly assist you in calculating the taxes associated with the purchase and checking if you may be eligible for a reduced tax rate or other tax benefit.

The information above is general and should not be considered individual legal advice.

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The information above is general and should not be regarded as individual legal or tax advice.

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DATA:

• Junta de Andalucía – official announcement on October 5, 2026, regarding the gradual ITP reduction
• Agencia EFE – reporting on the reduction to 6.75% in 2027
• Junta de Andalucía – applicable rules and tax rates for ITP and AJD