Andalucía Cuts Transfer Tax to 6.75% in 2027: What Costa del Sol Buyers Save

Andalucía will cut its transfer tax on resale homes from 7 percent to 6.75 percent in 2027, with a further quarter point coming off every year until the rate reaches 6 percent at the end of the legislature. The Junta announced it on 24 September 2026 and will write it into the 2027 regional budget. On a 1 million euro resale that is 2,500 euros less next year and 10,000 euros less once the rate hits 6 percent. It applies to second-hand property only. New builds keep paying 10 percent VAT plus 1.2 percent stamp duty, and nothing changes for anyone completing before 1 January 2027.

That is the whole story in one paragraph. The rest of this post is what it means in practice for people buying on the Costa del Sol: who gets the lower rate, who doesn’t, what it is worth at the prices we actually sell at, and whether it is a reason to wait.

What the Junta announced

Carolina España, the regional minister for the economy and finance, set out the measure in a parliamentary committee on 24 September, and the Junta published the detail the same day. Three things change, all inside the ITP, the Impuesto de Transmisiones Patrimoniales that a buyer pays on a second-hand home in Spain.

The Junta puts the number of people who will benefit next year at about 146,500. Around 138,000 of those come from the general cut and about 3,700 from the higher cap on the 6 percent rate. It is the eighth regional tax cut since 2019 and the second time this government has moved the ITP. In April 2021 it collapsed the old 8, 9 and 10 percent bands into a single 7 percent, which is the rate everyone has paid since.

One thing to be clear about, because a few sites are already presenting this as done. It is an announcement. The budget bill has to reach Parliament by the end of October, and the vote is expected in December. The PP governs with the support of Vox under a pact that commits both parties to passing every budget through 2030, so the political risk is low, but until the law is published in the BOJA the rate is still 7 percent. If for any reason no budget passed, the 2026 accounts would roll over and the cut would not start on 1 January.

What it saves at Costa del Sol prices

The headline examples in the Spanish press use 200,000 and 300,000 euro homes. Almost nothing we sell in Marbella, Benahavís or Estepona is priced like that, so here is the same arithmetic at the numbers that matter here. These assume you pay the general rate and that your price is at or above the Catastro’s reference value, which is what the tax is charged on if it is higher.

Put next to the total cost of buying, the 2027 step is modest. A resale in Andalucía currently costs around 8.5 percent on top of the price once transfer tax, lawyer, notary and registry are added, a figure we break down in our piece on what buying really costs here. From 2027 that becomes roughly 8.25 percent. By the time the rate is 6 percent it is about 7.5 percent, which is where the change starts to feel like real money on a villa.

Who actually gets the reduced rates

The 6 percent and 3.5 percent rates are only for a vivienda habitual, the home you live in as your main residence. That is the detail most of our international clients run into. If you are buying a holiday home, a rental investment or a base you use for part of the year while living abroad, you pay the general rate whatever the price. Raising the cap from 150,000 to 200,000 euros changes nothing for those buyers.

Where it does matter is for people relocating properly. A couple moving to Spain, registering as residents and buying a 190,000 euro apartment in Estepona or Manilva to live in would pay 6 percent instead of 7 under the new cap, which is 1,900 euros. For a buyer under 35 doing the same, the 3.5 percent rate would apply up to 200,000 euros. In both cases a garage or storeroom bought with the home counts toward the cap, and for a married or registered couple it is enough that one of the two meets the condition.

Separate from the ITP, the Junta is also putting another 25 million euros into its mortgage guarantee scheme for buyers up to 40, covering homes up to about 295,000 euros, or 354,000 with an A or B energy rating. It requires Andalusian residency, so again it is for people settling here, not for second-home buyers.

What is not changing

New builds. A home bought from a developer is subject to VAT, not ITP, so the cut does not touch it. You still pay 10 percent IVA plus 1.2 percent AJD stamp duty, around 12.7 percent all in once fees are added. We walk through every line of that in where your money goes on a new build. The gap between the two routes widens slightly from 2027, which is one more thing to weigh when a resale and an off-plan unit are competing for the same budget. Our current stock of new developments is here if you want to compare.

The reference value. Since 2022 the ITP is charged on the higher of the price you pay and the Catastro’s valor de referencia. A lower rate applied to a higher base can still produce a surprise at the notary. Have your lawyer pull the reference value before you sign anything, as we explain in the four checks that decide whether you should buy.

Wealth tax and inheritance. Andalucía keeps its 100 percent rebate on wealth tax and its near-total relief on inheritance between close family. Neither is part of this announcement. Our guide to Andalucía’s property taxes covers both.

The 100 percent tax on non-EU buyers. Clients still ask about this every week. The bill the PSOE filed in May 2025 has never been debated in Congress, and in March 2026 it was reported as stalled for lack of support. It is not law, and the Andalusian cut is entirely separate from it. If that ever changes we will say so here.

How Andalucía compares with the rest of Spain

Transfer tax is set region by region, and the spread is wide. Here is the general rate on a resale home in the regions international buyers most often weigh against the Costa del Sol, and what each one charges on a 1 million euro purchase.

Two things stand out. The first is that Andalucía is already in the cheap half of the table and is moving toward the top of it. Once the rate reaches 6 percent it matches Madrid, the only large region that is cheaper today. The second is the direction of travel elsewhere. Catalonia raised its rates in 2025 and added a 20 percent rate for large holders. Valencia still charges 9 percent after a cut from 10 this summer. The Balearics tax a 2 million euro villa in Mallorca at a blended rate well into double digits. Andalucía is the only one of the big coastal regions with a published plan to keep cutting.

On the kind of home we sell, the gap is real money. A 1.5 million euro villa pays roughly 165,000 euros in transfer tax in Catalonia and 145,000 in Valencia. In Andalucía from 2027 it pays 101,250, and 90,000 once the rate is 6 percent. That is the price of a full refurbishment of the kitchen and bathrooms, saved on tax alone, compared with buying the same house near Barcelona.

Why that makes the Costa del Sol the better buy

Transfer tax is only the first number. The ones that follow it are where Andalucía pulls further ahead. The region rebates wealth tax at 100 percent, so a resident with a 3 million euro home pays no regional wealth tax on it, where Catalonia, Valencia and the Balearics all charge it every year. Inheritance between parents, children and spouses is almost entirely relieved. Madrid offers similar treatment, which is why so much Spanish money sits there, but Madrid is 500 kilometres from a beach. The Costa del Sol is the only place in Spain where you get the Madrid tax position and the Mediterranean at the same time.

Then there is what the money buys. Málaga airport has direct flights to most of northern Europe year round, something the Costa Blanca and the islands cannot match in winter. The coast between Sotogrande and Marbella has the largest concentration of golf courses in Europe, a run of new developments that the islands simply cannot build because of land limits, and international schools from Sotogrande to Marbella. Prices per square metre in Marbella and Benahavís are still below Ibiza and central Mallorca for comparable homes, and well below Barcelona’s coast for a villa with a pool. We are biased, we have been here since 1999, but the tax table above is not our opinion. It is published by the regions themselves.

If you are deciding between here and another coast, start with the area that fits how you want to live, and we will put the full after-tax cost of a specific property next to whatever you are looking at elsewhere.

Should you wait until January to buy?

Our honest answer is no, and we say that knowing it costs us nothing either way. On a 1 million euro purchase the 2027 cut is worth 2,500 euros. Second-hand prices in Andalucía rose 14 percent in the past year, close to 30,000 euros on the average home, according to figures reported by El Correo de Andalucía the day of the announcement. On the villas and apartments we handle the increase in cash terms is far larger than that. Three months of price movement, or losing the house you wanted to another buyer, outweighs a quarter point many times over. If you have found the right property, the tax saving is not the reason to hold off.

Where timing is worth a conversation with your lawyer is if a purchase would naturally complete in the last days of December anyway. The tax is charged at the rate in force on the day the transfer happens, which in practice means the date of the escritura, so a deed signed on 2 January should get 6.75 percent while one signed on 30 December pays 7. That is our reading of the general rule, since the Junta has not published any transition wording yet. A private purchase contract signed in December with completion in January does not by itself fix the old rate. Ask your lawyer to confirm the position once the budget law is published. We work with independent lawyers, not the notary, for exactly this kind of question.

For buyers at 6 percent, the maths changes. Getting there takes three more annual budgets, each needing its own vote, and the government has only committed to the end point, not to the years in between. Nobody should plan a purchase around 2030.

What we will do with this

From the day the rate is published we will update every cost calculation on this site, including our buying guide and the worked examples in the posts linked above. If you are weighing a resale against a new build, or trying to work out your real search budget after costs, start with the area and then talk to us. We will run the actual numbers on the actual property, including the reference value, before you make an offer.

Frequently Asked Questions

What is the transfer tax rate in Andalucía in 2027?

6.75 percent on resale homes, down from 7 percent, if the 2027 regional budget is approved as announced. The Junta plans a further quarter point off each year until the rate reaches 6 percent.

When does the 6.75 percent rate start?

The intention is 1 January 2027. The budget bill goes to the Andalusian Parliament by the end of October 2026 and is expected to pass in December. Until it is published, the rate stays at 7 percent.

Does the cut apply to new builds?

No. New builds bought from a developer pay 10 percent VAT plus 1.2 percent stamp duty instead of ITP. Only second-hand property is affected.

How much does a foreign buyer save?

2,500 euros per million of taxable value in 2027, rising to 10,000 euros per million when the rate reaches 6 percent. Most non-resident buyers pay the general rate, so these figures apply directly.

Can a non-resident get the 6 percent or 3.5 percent rate?

Only if the home is their vivienda habitual, meaning their main residence in Spain. Holiday homes and investment purchases pay the general rate regardless of price.

Which rate applies if I sign in December 2026 but the law is already approved?

The rate in force on the day of the transfer, which is normally the date of the deed. A deed signed in December 2026 pays 7 percent. The Junta has not published transition rules, so confirm with your lawyer once the law is out.

Is the 100 percent tax on non-EU buyers in force?

No. It was proposed in January 2025 and filed as a bill in May 2025, but it has never been debated or voted on in Congress and was reported as stalled in March 2026.

Is it worth waiting until 2027 to buy on the Costa del Sol?

In our view, no. The saving is a quarter of a percent of the price, and second-hand prices in Andalucía rose 14 percent in the last year. The right property matters far more than the timing of the tax.