Property Transfer Tax (ITPO) in Catalonia: Key Facts for Buying a Resale Property
If you’re planning to buy a resale home in Catalonia, it’s essential to understand the Property Transfer Tax—known in Spanish as ITPO (Impuesto de Transmisiones Patrimoniales Onerosas).
What is ITPO?
ITPO is a regional tax applied to the transfer of real estate between individuals. The buyer pays this tax—not the seller—when purchasing a used property.
How much is it?
In Catalonia, the general tax rate is 10% of the property’s value. The taxable base is typically the higher of these two:
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The price declared in the purchase deed
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The official cadastral reference value
Note: The tax authority may reassess the declared value if it believes it is below market value.
Are there any discounts or reduced rates?
Yes. Reduced tax rates or exemptions may apply in certain situations:
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Large families
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People with disabilities
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Young buyers (usually under 32 or 36 years old, subject to income and asset limits)
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Social or subsidized housing
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Companies purchasing property for social rental purposes
Each case has specific conditions, so it’s important to verify eligibility.
Payment and submission deadline
The tax must be filed and paid within one month from the date of signing the public deed. This is done through Form 600 and submitted to the Catalan Tax Agency (Agència Tributària de Catalunya).
What happens if you don’t pay?
Late or missing payments may result in penalties, late fees, and interest, and the property cannot be registered until the tax is settled.
Is it compatible with other taxes?
Yes. ITPO is separate from other taxes, such as:
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Municipal Capital Gains Tax (paid by the seller)
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Property Tax (IBI) – often prorated between buyer and seller in the year of purchase
If you’re unsure how ITPO applies to your case or need help buying or selling a property in Catalonia, Finques El Pallars is here to guide you through every step of the process.
