What is ITP and when does it have to be paid?

ITP (Impuesto de Transmisiones Patrimoniales) is a tax that is applied in the purchase of second-hand properties in Spain. ITP is applied at the regional level, which means that the rate and payment method vary depending on the autonomous community where the property is located.

In most autonomous communities, the tax rate for ITP ranges from 6% to 10% of the property value. ITP must be paid before the signing of the purchase deed before a notary, and it is the buyer's responsibility to pay it.

It is important to note that ITP is only applied to the purchase of second-hand properties, while in the case of new properties, Value Added Tax (VAT) is applied instead of ITP. Additionally, in some autonomous communities such as Catalonia and Valencia, an additional tax is applied to the purchase of luxury or high-value homes.

It is recommended to obtain accurate information about the rates and specific procedures for paying ITP in the autonomous community where the property is located before purchasing.