On 24 September 2026 the regional government of Andalucía announced a cut to the transfer tax on resale homes, to take effect from 1 January 2027. Transfer tax is the largest single cost of buying a resale home, so the question I have been asked most since is whether to wait. This guide sets out what was announced, what it is worth at each price, and how to weigh it against the market.
What the tax is now
Transfer tax, the ITP, is charged on a resale home at 7% of the price in Andalucía. It is paid by the buyer within thirty days of the deed. Two reduced rates exist for a home that will be your main residence, and only up to a price of €150,000: 6% in general, and 3.5% for a buyer under 35, with a recognised disability, or with a large family.
A new build from a developer does not pay transfer tax. It pays VAT at 10% and stamp duty at 1.2%, and neither is affected by this plan. The costs of buying has the full picture for both.
What was announced
Two changes, both for resale homes, both from 1 January 2027:
- The general rate falls from 7% to 6.75%.
- The price ceiling for the reduced rates rises from €150,000 to €200,000.
The measure is part of the regional budget for 2027. At the time of writing the budget has been announced and not yet passed. Regional budgets in Andalucía have been passed on time in recent years, and a tax cut announced as a headline measure is unlikely to be dropped, but it is a plan until the law is published. I will update this page when it is.
What it is worth
The cut on the general rate is a quarter of one percent of the price. At the prices most of my clients buy at:
| Price | Tax at 7% | Tax at 6.75% | Saving |
|---|---|---|---|
| €250,000 | €17,500 | €16,875 | €625 |
| €350,000 | €24,500 | €23,625 | €875 |
| €500,000 | €35,000 | €33,750 | €1,250 |
| €750,000 | €52,500 | €50,625 | €1,875 |
| €1,000,000 | €70,000 | €67,500 | €2,500 |
The larger saving is in the reduced band, and it is only for a home you will live in as your main residence. A main residence at €180,000 pays €12,600 at 7% today and would pay €10,800 at 6% from 2027, a saving of €1,800. At €200,000 the saving is €2,000. A holiday home or an investment at the same price does not qualify for the reduced rate and saves the general €450 to €500.
The arithmetic on waiting
The saving on a general-rate purchase is 0.25% of the price. Set that against what prices did over the last year. Asking prices rose 1.1% in Fuengirola in the year to September 2026, 4.0% in Marbella in the year to August, and by more than ten percent in several districts of Mijas. On a €350,000 home, a 1% rise is €3,500, four times the tax saving. A 4% rise is €14,000.
Prices do not rise everywhere and they do not rise in a straight line, and a flat year is possible. But the honest version of the calculation is that the cut is small against the normal movement of the market in either direction. It is not a reason to let the right home go in November. It is a pleasant bonus if your completion was going to land in January anyway.
Two things do make waiting sensible:
- You are buying a main residence between €150,000 and €200,000. The saving there is up to €2,000, and if the home you want is not going anywhere, completing after 1 January is worth arranging.
- Your purchase is already running into December. The tax is charged on the date of the deed, not the date of the private contract. If the deed is due in the last week of December, moving it to the first week of January costs nothing and saves the difference. Ask your lawyer to set the date with that in mind.
What it does not change
The rest of the cost of buying is unaffected. Notary and Land Registry fees, your lawyer’s fee, a survey if you want one, and the costs of a mortgage all stay as they are. So does everything on the new-build side. A buyer choosing between a resale and a new build should still compare them on the full cost, and new build or resale sets that out.
What I would do
If you have found the home, buy the home. If you are choosing a date for a signing that could fall either side of the new year, choose January. If you are buying a main residence under €200,000, the cut is worth planning around. And if the budget is passed with different numbers from the ones announced, the figures on this page will change with it.
If you want the numbers run on a specific property, book a call and bring the price.
Common questions
What is the transfer tax in Andalucía in 2026?
What changes in 2027?
How much does the cut save?
Does the cut apply to new builds?
Should I wait until 2027 to buy?
What this relates to
