Buying a resale home will be slightly cheaper in 2027: ITP in Andalusia will fall from 7% to 6.75%, and the regional government wants to keep trimming it by a quarter of a point each year until it reaches 6%. On top of that, the maximum value of a home that can qualify for the reduced rates will rise from €150,000 to €200,000.
Carolina España, the regional minister for the Economy, Finance and European Funds, announced it in the Andalusian Parliament on 24 September, and the measures will be included in the 2027 regional budget, which has yet to be approved. Two days earlier, the regional government had added €25 million to the guarantee scheme that lets people aged 40 or under buy their first home with a mortgage of up to 100%.
What changes in Andalusia’s ITP from 2027?
ITP, the property transfer tax, is what you pay when you buy a resale home; new builds are subject to VAT instead. Andalusia has had a single general rate of 7% since 2021, when it replaced the old scale of 8%, 9% and 10%, plus reduced rates for lower-value main homes. This is how the announced changes compare:
| What changes | Now (2026) | From 2027 (announced) |
|---|---|---|
| General ITP rate | 7% | 6.75%, with the aim of reaching 6% by the end of the parliamentary term |
| Main home at 6% | Up to €150,000 | Up to €200,000 |
| At 3.5%: under-35s, victims of domestic violence or terrorism, and municipalities at risk of depopulation | Up to €150,000 | Up to €200,000 |
| At 3.5%: people with disabilities and large families | Up to €250,000 | Up to €300,000 |
The caps work as a threshold: if the home’s value exceeds them by even one euro, the general rate applies to the whole amount. That value is the higher of the price in the deed and the Cadastre’s reference value, and it includes any garage or storage room bought together with the home. The reduced rates also require the home to be the buyer’s main residence.
How much will you save with the ITP cut on the Costa del Sol?
The general rate is what almost every buyer of a resale home on the coast pays, whether or not they live in Spain, because it applies to any purchase that does not meet the conditions for the reduced rates, holiday homes included. The regional government itself estimates that around 138,000 of the 146,500 Andalusians who will benefit next year will do so through the lower general rate. At the median price in our market report, €650,000, and at other typical prices, the numbers look like this:
| Property price | ITP now (7%) | ITP in 2027 (6.75%) | Saving in 2027 | Saving at 6% |
|---|---|---|---|---|
| €300,000 | €21,000 | €20,250 | €750 | €3,000 |
| €650,000 (median) | €45,500 | €43,875 | €1,625 | €6,500 |
| €1,000,000 | €70,000 | €67,500 | €2,500 | €10,000 |
| €2,000,000 | €140,000 | €135,000 | €5,000 | €20,000 |
It is a real saving, but a gradual one: 0.25% of the price in 2027, which on the median home comes to €1,625. If the schedule of a quarter of a point a year holds, the rate would reach 6% in 2030 and the same purchase would pay €6,500 less than today.
Who benefits from the new €200,000 cap?
For those who qualify, the change means much more. A 30-year-old buying a main home for €200,000 pays €14,000 in ITP today, because the price is above the current €150,000 cap, and in 2027 would pay €7,000 at 3.5%. Any other buyer of a main home at that price would move to the 6% rate: €12,000.
On the coast, however, few homes fit within those caps. Our sales portfolio on the Costa del Sol and its hinterland includes 7,613 resale homes, and only 161 of them cost €200,000 or less, 2.1%. Under the current €150,000 cap there are 53, so the measure triples the number of eligible homes, although they remain a tiny share of supply. For large families and people with disabilities, the rise from €250,000 to €300,000 goes further: the count grows from 341 to 751 homes, almost 10%.
| Municipality | Median price (report) | Resale homes up to €200,000 | Homes up to €295,240 (guarantee) |
|---|---|---|---|
| Marbella | €950,000 | 3 of 1,948 | 29 of 2,009 |
| Estepona | €635,000 | 10 of 1,234 | 65 of 1,327 |
| Mijas | €545,000 | 4 of 994 | 102 of 1,098 |
| Fuengirola | €550,410 | 3 of 613 | 60 of 655 |
| Benahavís | €1,175,000 | 4 of 528 | 16 of 572 |
| Benalmádena | €596,000 | 10 of 354 | 40 of 374 |
| Malaga | €585,000 | 6 of 342 | 39 of 355 |
| Manilva | €365,000 | 9 of 293 | 96 of 310 |
| Torremolinos | €497,000 | 13 of 141 | 25 of 153 |
| Our whole portfolio | €650,000 | 161 of 7,613 | 695 of 8,078 |
Homes under €200,000 are found mainly away from the priciest markets: in Torremolinos they make up 9% of the resale homes in our portfolio, and in Ronda one in four. Marbella and Fuengirola have three each, and Mijas has four.
Who can apply for the regional mortgage guarantee?
The Programa Garantía Vivienda Andalucía covers the part of the loan above 80% of the price, so the bank can lend up to 100% of the purchase. With the new €25 million, its budget reaches €80 million, and according to the regional government more than 3,000 young people have already used it. These are the main requirements:
- Be an adult aged 40 or under and be registered as living (empadronado) in an Andalusian municipality. Foreign residents can apply too.
- Be buying your first home and not own, or hold a right of use over, another home in Spain, except in the cases the scheme allows.
- The price must not exceed €295,240, or €354,288 if the home has an A or B energy rating. If the valuation comes in below the price, the valuation is what counts.
- Live in it as your main residence for at least two years. It can be new or resale.
- Arrange it through one of the participating banks, including CaixaBank, Unicaja, Cajamar, Ibercaja and Cajasur: the bank submits the application.
On the coast, the price cap is the real barrier. Of the 8,078 homes in our portfolio, new and resale, 695 cost €295,240 or less, 8.6%. In Manilva almost a third of supply falls within the cap; in Marbella, less than 2%.
Is it worth waiting until 2027 to complete the purchase?
ITP is charged at the rate in force on the day the deed is signed, so a purchase completed in January 2027 could already benefit from the cut if the budget has been approved and is in force by then. If a deal is set to complete in December, pushing the signing back a few weeks may make sense, but it is best to agree this in writing with the seller and to check beforehand that the new law already applies.
For those still searching, the maths is different. Asking prices in the province of Málaga are rising by 7.4% year on year, according to idealista’s August index: at that pace, a €650,000 home would cost about €48,000 more within a year, almost thirty times the 2027 tax saving.
In short: what do buyers gain from the ITP cut?
The cut in the general rate reaches every buyer of a resale home, including foreigners and those looking for a second home, but its effect is gradual: 0.25% of the price in 2027 and 1% once the rate reaches 6%. The new €200,000 and €300,000 caps and the mortgage guarantee mainly help young people and families on tight budgets, who find little on the coast at those prices. If you are working out what a purchase will cost you, we can help you square taxes, mortgage and timings before you sign.
Sources: Andalusian regional government (appearance by the Minister for the Economy, Finance and European Funds on 24 September 2026 and expansion of the Programa Garantía Vivienda Andalucía on 22 September 2026), Andalusian Law 5/2021 on Ceded Taxes, idealista’s August 2026 price index and listings in our portfolio as of 28 September 2026.
This article is for general information only and is not a substitute for a tax adviser’s advice on your specific case.
Frequently asked questions
When does ITP come down in Andalusia?
The general rate will fall from 7% to 6.75% in 2027, through that year’s regional budget, and the regional government plans to lower it by a quarter of a point a year to 6% by the end of the parliamentary term, expected in 2030. Until the law is in force, buyers still pay 7%.
Do non-resident foreigners pay the same ITP?
Yes. ITP makes no distinction by nationality or residence: a non-resident buying a resale home in Andalusia pays the general rate and will also benefit from the cut to 6.75%. The reduced rates, however, require the home to be the buyer’s main residence.
Does the ITP cut apply to new builds?
No. A new home sold by a developer pays 10% VAT and, in Andalusia, 1.2% stamp duty (AJD), with reduced rates for lower-value main homes. The regional government’s announcement concerns ITP, which applies to resale homes.
Can I get the regional guarantee if I am over 40?
No. The Programa Garantía Vivienda Andalucía is for buyers aged 40 or under who are purchasing their first main home for up to €295,240, or €354,288 with an A or B energy rating. The application is submitted by the participating bank that grants the mortgage.
How much ITP will I pay on a €300,000 home?
At the general rate, €21,000 today and €20,250 in 2027. Being under 35 does not help at that price, because the cap on the reduced rate for young buyers will rise to €200,000; from 2027, only large families and people with disabilities could pay 3.5% if it is their main home, which is €10,500.
What next? The most useful thing after reading is to look at the real market: browse properties by city or tell us on WhatsApp what you are looking for — area, budget, timing — and we will prepare a tailored selection, with no obligation.
You may also find useful: sell your property invest on the Costa del Sol free valuation monthly price report
