How Much is Property Transfer Tax (ITP) in Madrid, Valencia, the Balearic Islands and Aragon?

Tax base: more than just the agreed price

In property transactions, the tax authority (AEAT / regional tax office) can verify that the tax base does not fall below the reference value when required by law. This means that calculating ITP simply by multiplying the listed property price can lead to errors. Always check the reference value before closing a deal.

Madrid (Comunidad de Madrid)

The Tax Agency of the Comunidad de Madrid publishes the current tax rates and discounts for main residences, young people and other qualifying cases. Check the general bracket and any reductions applicable to your age and circumstances on the regional authority website or in the official gazette of the CAM on the date of your purchase.

Sky Real Estate operates frequently in Madrid, where ITP is a major item in the purchase budget alongside notary and land registry fees.

Valencian Community

Valencian ITP is set out in regional regulations and guidelines issued by the Valencian tax authority. In 2026, discussions and potential modifications to tax rates or reliefs are underway; before budgeting for a purchase in Valencia or its surrounding provinces, verify the current text in the DOGV and on the official Generalitat portal, rather than relying on undated generic articles.

We do not state a specific rate for the Valencian Community here because it may have changed recently. If your transaction is imminent, an administrator or the officiating notary will confirm the applicable rate on the day of signing.

Balearic Islands (Illes Balears)

In Mallorca and the rest of the archipelago, Balearic property transfer tax regulations apply (consult the BOIB and the regional tax department). Differences may apply depending on whether it is a primary residence, the buyer's age or reinvestment conditions. For buyers coming from mainland Spain, the typical mistake is assuming the ITP rate from their home region applies.

Aragon

Aragon has its own scale for property transfer tax, with potential tax reliefs for certain buyers or large families under current regulations. Review the Official Gazette of Aragon and information from the Aragon Tax Authority in September 2026 or during the month of signing your title deed.

Comparing four regions without guessing figures

The most sensible approach is to prepare a table with four columns (Madrid, Valencian Community, Balearic Islands, Aragon) and note the following for each:

• Officially published general tax rate.
• Tax reliefs if it is your primary residence and you meet the required age or income criteria.
• Tax base (purchase price vs reference value).
• Self-assessment deadline and regional tax return form.

If two autonomous communities are under consideration for the same property purchase (due to remote working or a second home), this comparison shows that tax can sway the decision just as much as the price per square metre.

ITP is not VAT (IVA) or Stamp Duty (AJD)

For new-build properties, VAT (IVA) and, where applicable, Stamp Duty (AJD) usually apply instead of ITP. Mixing up these terms in your purchasing budget is another common mistake. The developer or advisor should clarify the correct tax regime.

Who pays and when

Legally, the taxable person in a second-hand property transfer is the buyer. Tax is self-assessed with the competent regional tax administration within the statutory deadline set by law. Without proof of settlement, you cannot register the property smoothly, as the land registrar will require tax payment confirmation.

Common tax reliefs (without listed percentages)

Many regional authorities reduce the tax payable for buyers acquiring a primary residence, subject to age or income limits, or for large families. The criteria vary, including local residency registration (empadronamiento), not owning another suitable home, and maintaining occupancy for a minimum period. Always read the full regional order, as an outdated news headline carries no weight at the notary.

Calculations prior to making an offer

When negotiating a price, add the estimated ITP to the total purchase cost. A discount of 10,000 euros on the asking price could be negated if you would pay less tax in another autonomous community or if the reference value inflates the tax base. A property search specialist or personal shopper typically factors this variable into the negotiation calculations.

Next step

Before signing a deposit agreement (arras), request an estimated ITP calculation based on the official reference value and verified regional rate. If you purchase with professional guidance, the personal shopper inmobiliario factors this expense into your overall budget so that your mortgage and savings align with the fiscal reality.

Guidance valid as of: September 2026. Check regional regulations and official gazettes (DOGV/BOCM/BOIB/BOA) on the date of signing your deed.