From 1 January 2027, buying a resale home in Andalusia should cost a quarter of a percentage point less in tax. On 22 October 2026 the regional president, Juanma Moreno, presented a 2027 budget of €54.7 billion to the Andalusian parliament. It includes a cut in the general rate of property transfer tax (ITP, the tax paid on second-hand homes) from 7% to 6.75%, the first of four annual cuts that are meant to bring the rate down to 6% by 2030. The cabinet is due to approve the draft on 28 October; the budget then goes through parliament in November and December.
The cut was first announced by the finance minister, Carolina España, on 24 September, and widened on 5 October, when Moreno added higher price limits for the reduced rates. Today's budget turns the announcement into a draft law with a date. Below: what changes, what it saves on a typical Costa del Sol purchase, how Andalusia now compares with the other coastal regions, and whether it makes sense to delay a signing to the new year.
What ITP is: Impuesto de Transmisiones Patrimoniales, the regional tax charged on the purchase of an existing home from a private seller. It is paid by the buyer, resident or not, at the rate in force on the day the deed is signed. New-build homes bought from a developer do not pay ITP: they pay 10% VAT plus stamp duty (AJD), which in Andalusia is 1.2% and is not changed by this budget.
What changes from 2027
| Rate | Who pays it | Today | From 2027 |
|---|---|---|---|
| General rate | Every buyer of a resale home, including non-residents and second-home buyers | 7% | 6.75% |
| Reduced 6% | Main residence, no other condition | Price up to €150,000 | Price up to €200,000 |
| Reduced 3.5% | Main residence for buyers under 35, victims of domestic violence or terrorism, buyers in depopulating municipalities | Price up to €150,000 | Price up to €200,000 |
| Reduced 3.5% | Main residence for large families and people with a disability | Price up to €250,000 | Price up to €300,000 |
The reduced rates require the home to be the buyer's main residence in Spain, so for most foreign buyers of a holiday home the relevant line is the first one. The regional government expects around 147,000 buyers a year to benefit from the package, almost all of them through the general rate. The ITP cut is part of what the Junta calls its eighth tax reduction, worth about €300 million a year, which also trims regional income tax by a quarter of a point a year for incomes under €60,000.
The schedule: a quarter point a year to 6%
Moreno's stated goal is to match Madrid, which at 6% has the lowest general ITP rate in Spain. The announced path is 6.75% in 2027, 6.50% in 2028, 6.25% in 2029 and 6% in 2030. Only the 2027 step is in the budget now presented; each later cut will need its own budget law. The table shows what that means for the tax bill on a resale purchase, assuming the schedule is kept.
| Purchase price | ITP today (7%) | 2027 (6.75%) | Saving in 2027 | 2030 (6%) |
|---|---|---|---|---|
| €250,000 | €17,500 | €16,875 | €625 | €15,000 |
| €400,000 | €28,000 | €27,000 | €1,000 | €24,000 |
| €600,000 | €42,000 | €40,500 | €1,500 | €36,000 |
| €1,000,000 | €70,000 | €67,500 | €2,500 | €60,000 |
| €2,000,000 | €140,000 | €135,000 | €5,000 | €120,000 |
Key point: the 2027 saving is €250 per €100,000 of price. On a €600,000 apartment in Marbella or Estepona that is €1,500, roughly the cost of one month's rent while you wait. The full cut to 6% in 2030 is worth €1,000 per €100,000, four times as much, but it is three budgets away.
How Andalusia compares with the other coasts
Andalusia already had the lowest transfer tax of the four Mediterranean regions where we sell. The cut widens the gap. The Valencia region reduced its rate from 10% to 9% in June 2026, Murcia charges 8%, and the Balearic Islands apply a progressive scale that starts at 8% and reaches 13% above €2 million.
| Region | General ITP on a resale home | ITP on a €600,000 purchase |
|---|---|---|
| Andalusia (Costa del Sol), from 2027 | 6.75% | €40,500 |
| Andalusia, today | 7% | €42,000 |
| Murcia (Costa Cálida) | 8% | €48,000 |
| Valencia region (Costa Blanca) | 9% (11% above €1 million) | €54,000 |
| Balearic Islands (Mallorca) | 8% to 13%, progressive | €50,000 |
Tax is one line in the budget, not the reason to choose a coast. A buyer comparing Marbella with Jávea will find that the difference in asking prices for a comparable villa is far larger than the 2.25 points of ITP between them. Our guide to the costs of buying property in Spain adds up everything else: notary, registry, lawyer, and the stamp duty and VAT on new builds.
What this means for a buyer on the Costa del Sol
1. Signing in December or January: the tax follows the deed date
ITP is charged at the rate in force on the day the public deed is signed at the notary, not the day of the reservation or the private contract. A purchase agreed in November and completed in January 2027 would pay 6.75%, provided the budget law has been published by then. Andalusia has approved its last budgets before the end of December, and the government has said the cut will apply from 1 January. If your completion is already scheduled for late December, moving it a few weeks saves €250 per €100,000; weigh that against the seller's willingness to wait and the terms of your deposit contract.
2. Waiting for the cut is not a strategy
Notaries' data for the first half of 2026 put the average price per square metre paid by foreign buyers in Spain 9.4% higher than a year earlier. At that pace, a €600,000 apartment gains more value in a month than the 2027 tax cut returns. The cut is worth taking if your timing lands in January anyway; it is not worth losing a home over.
3. New builds are untouched
A home bought off-plan or new from a developer on the Costa del Sol pays 10% VAT and 1.2% stamp duty, 11.2% in total, before and after this budget. The ITP cut widens the tax gap between resale and new-build from 4.2 to 4.45 points in favour of resale, which changes nothing for a buyer who wants a new home with a ten-year structural guarantee. Our guide to new-build property in Spain explains the payment schedule and bank guarantees.
4. Non-residents get the same rate
The general rate does not distinguish between a Spanish buyer, an EU resident and a buyer from outside the EU. The reduced rates do require a main residence, so a holiday home never qualifies for them, whatever its price. Everything a non-resident owner pays each year after the purchase, from IBI to the imputed income tax, is set out in our guide to property taxes in Spain.
Outlook: a budget to be voted, a direction that is clear
The 2027 budget still has to pass the Andalusian parliament, with the general debate in November and the final vote in December. The ITP cut is a headline measure of the government's own programme, so the main risk is to the later steps rather than to the first one: each cut from 2028 onwards depends on a new budget and on the region's finances at the time. For buyers, the practical conclusion is simple. If you are choosing between the Costa del Sol and another Spanish coast, Andalusia's tax advantage on resale homes grows from 2027. If you have found the right home, the date of the deed matters more than the quarter point.
If you would like to see what a budget buys today on the Costa del Sol, with the 2027 tax already in the calculation, ask for a personal selection.
