On June 27, significant changes to the rates of the Transfer Tax on Onerous Property Transactions (ITP) came into force in Catalonia, following the approval of Royal Decree-Law 5/2025 of June 17 on fiscal, financial, administrative, and public sector measures.
These reforms directly impact the purchase and sale of real estate, particularly second-hand homes, and aim to adjust the tax burden with criteria of progressivity and social purpose.
Key changes include:
◾️ General rate: Remains at 10% for transactions up to €600,000, except for specific exemptions.
◾️ New variable rates: Progressive rates of 11%, 12%, and 13% are introduced based on the property’s market value, replacing the previous single rate in cases of greater economic capacity:
Between €600,000 and €900,000: 11% rate.
Between €900,000 and €1,500,000: 12% rate.
Over €1,500,000: 13% rate.
In addition, the decree-law introduces a 20% rate for the purchase of residential properties by large property holders.
◾️ Primary residence for young buyers: The reduced 5% rate is maintained for the purchase of a primary residence by individuals under 33 years of age with annual income below €36,000.
◾️ Housing for public policy purposes: A 3% rate is set for transactions intended for public housing policies, such as purchases by non-profit entities or housing cooperatives under a use-transfer scheme.
This new framework introduces greater complexity in the practical application of the tax, making it essential to pay close attention to determining the property’s market value, verifying the requirements for applying reduced rates, and potential oversight by the tax authorities.
