Last Friday, June 27, 2025, Decree-Law 5/2025 came into force, which reconfigures the Transfer Tax (ITP) on real estate transactions in Catalonia. Below, we explain how it can affect you in your future acquisitions with five keys:
Progressive scale of ITP on used homes
The fixed rate (10% or 11%) is abandoned and a progressive rate by brackets is introduced.
| Value of the property | Section | Applicable type |
|---|---|---|
| Up to €600,000 | Section 1 | 10 % |
| From 600,001 to 900,000 €. | Section 2 | 11 % |
| From 900,001 to 1,500,000 €. | Section 3 | 12 % |
| More than €1,500,000 | Section 4 | 13 % |
The average rate is calculated progressively, which taxes and increases the cost of higher-value acquisitions.
Flat rate of 20 % for large forks and complete buildings
A rate of 20% applies to:
- Home purchases by “large holders”: owners with more than 10 residential properties, or at least 5 in “stressed areas”.
- Acquisitions of complete residential buildings (with or without horizontal division)
Exceptions: this rate does not apply when:
- The acquirer is a social developer or non-profit entity.
- In complete buildings acquired by individuals, provided that it includes a maximum of 4 dwellings used as the habitual residence of the buyer or second degree relatives.
End of the 70% bonus on flipping
The 70% bonus for quick sale and purchase transactions (less than 3 years) by real estate companies is abolished. It will no longer be available from March-April 2025.
Rebates and reduced rates
Tax incentives continue to exist for certain profiles
- 5 % rate in ITP when acquiring a primary residence for:
- Young people (now up to 35 years old, previously 32) who meet income requirements.
- Large families, people with disabilities, single-parent families, victims of gender violence (new beneficiary group).
- 7% rate for subsidized housing.
- 50 % or 100 % rebates in certain cases (e.g. non-profit cooperatives, head office/work center)
Documented legal acts (AJD): an additional increase in costs
The AJD is also modified, reaching 3.5 % in deeds of transfer subject to VAT with waiver of exemption (previously 2.5 %). However, 100% rebates are included for young people under 35 years of age in habitual dwellings.
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