The new ITP reform in Catalonia: how does it impact home buying?

  • BARNES Barcelona & Costa Brava
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  • Friday 27 June 2025
The new ITP reform in Catalonia: how does it impact home buying?

How the new tax reform affects home purchases

On June 27, 2025, the modification of the Tax on Property Transfers and Documented Legal Acts (ITP-AJD) came into effect in Catalonia. Decree Law 5/2025, dated March 25, introduces changes within the scope of the tax on property transfers and documented legal acts, as well as the tax on inheritances and donations. This means that transactions formalized from June 27, 2025, onward are subject to the new regime.

These changes include:

1. Tax on property transfers and documented legal acts

The changes affect, regarding the property transfer modality:

- Transfers of real estate and the constitution and assignment of real rights over real estate, where the rate is modified and a specific tax rate of 20% is established for the transfer of homes to large owners (TGT tariff*) and for the transfer of entire residential buildings (TEH tariff*).

When the 20% tax rate does not apply, nor do any of the reduced rates for the purchase of a primary residence, transfers of real estate (TUB, TRT, or TAM tariffs*) with a total value not exceeding €600,000 are taxed at a 10% rate, and when the total value exceeds that, they are taxed at the average rate resulting from applying the following tariff according to the property’s value:

TGT: A large owner is considered to be a natural or legal person who owns more than 10 residential properties or has a built area of more than 1,500 m² of residential use located in Catalonia. Also considered large owners are natural or legal persons owning five or more urban residential properties located in a tense residential market area declared by the Generalitat of Catalonia. Garages and storage rooms are not included in the count.

TEH: https://atc.gencat.cat/es/tributs/itpajd/tpo/tarifes-tipus/

TUB, TRT o TAM: https://atc.gencat.cat/es/tributs/itpajd/tpo/tarifes-tipus/

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