How the New ITP in Catalonia Affects Homebuyers and Real Estate Investors

If you’re thinking of buying a flat or investing in real estate in Catalonia, you’ve likely heard about the changes to the Property Transfer Tax (ITP) being implemented in 2025. This new ITP Catalonia 2025 introduces reforms that impact both private buyers and small and large investors. Here’s everything you need to know: what’s new, who is affected, and how to better plan your real estate transaction.

What is the ITP and Why Is It So Important in Catalonia?

The ITP is the tax you pay when purchasing a second-hand property. In Catalonia, this tax represents a percentage of the deeded price and is managed by the regional government (Generalitat). It’s a cost you must consider carefully when calculating your budget, as it must be paid at the time of purchase.

Until now, the general rate in Catalonia was 10%, but the new ITP 2025 reform introduces several adjustments aimed at increasing tax revenue and discouraging speculative operations in a still overheated housing market.

Main Changes in the New ITP Catalonia 2025

These are the key points you should know:

• General rate increased to 11%: The tax on second-hand home purchases rises from 10% to 11%. That’s an additional €1,000 for every €100,000 of purchase price.
• Reduced rate for specific groups: The 5% reduced rate is maintained for large families, people with disabilities, and individuals under 33 buying their main residence—provided they meet certain income requirements.
• Surcharge for purchases by large landlords or companies: A higher rate of 12% applies to purchases made by legal entities or large landlords (as defined by the Housing Law). The goal is to limit housing concentration among a few big players.
• Anti-fraud measures: The Generalitat is strengthening control over declared deed values by using digital tools to compare with official property reference values published by the Cadastre.

How Does This Affect Buyers?

For private buyers, the increase in ITP means a higher initial outlay.
Here’s a simple example:

• Before the change: buying a home for €200,000 meant paying €20,000 in ITP (10%).
• Now: you would pay €22,000 (11%).

That extra 1% might require more savings or adjustments to your budget, especially since this tax usually can’t be included in the mortgage.

If you’re currently buying, you may also want to read: What costs should you consider when buying a property?

How the New ITP Affects Investors

The impact is even greater if you buy as a company or if you’re classified as a large landlord:

• The 12% rate significantly increases the cost of the operation.
• This change may reduce the profitability of second-hand property investments, especially for buy-renovate-resell strategies.
• Combined with other measures in the Housing Law, this may drive investors toward new-build properties (which are subject to 10% VAT instead of ITP) or alternative real estate assets.

What Do Experts and the Real Estate Sector Say?

Organizations like Idealista News have pointed out that such measures could deter investment and further slow down the second-hand market. However, the Generalitat defends the reform as a necessary step to balance the housing market and fund public housing policies.

Some experts argue that the increase in ITP could redirect investor interest to municipalities with lower tax rates or neighboring regions.

Key Tips to Plan Your Purchase Under the New ITP 2025

If you’re considering a purchase in Catalonia this year, here are some recommendations:

• Include taxes in your budget early on: Factor the ITP into your initial calculations.
• Check if you qualify for a reduced rate: Review your age, income, and whether the property qualifies as a main residence. Are you aware of the 2025 housing aid programs?
• Consider alternatives: New-build homes (subject to VAT), or properties in areas with lower tax rates, may be more cost-effective.
• Seek professional tax advice: Especially important if you’re buying as a company or for investment purposes.

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The new ITP Catalonia 2025 introduces a reform that directly impacts the finances of both homebuyers and investors. While it aims to serve social and fiscal goals, it’s essential that buyers plan thoroughly to avoid unpleasant surprises. At KM2 News, we keep you informed so you can make confident and informed decisions.