What is the ITP and how is it calculated in Almeria?

In this blog, we will explain in detail everything you need to know about the ITP when buying a second-hand property in Almeria: from how it is calculated to the current discounts and tax rates.

The Property Transfer Tax (ITP) is a regional tax that is mainly applied to the purchase of second-hand property, as well as to other legal acts and the transfer of goods and rights. In Almería, this tax is managed by the Junta de Andalucía, which establishes the specific regulations and tax rates for the region.

1. What is the ITP?

• The ITP is a tax that is applied in transactions involving the transfer of used goods or second-hand real estate. When a used property is purchased, the buyer pays this tax, unlike a new property, which would be subject to VAT.
  
• The tax also covers other acts, such as the transfer of rights, leases of real estate and the constitution of rights in rem (e.g. a usufruct or easement).
  

2. How the ITP calculation works when buying a second-hand property in Almeria:

Currently, in Andalusia and other communities in Spain, the Transfer Tax (ITP) is calculated on the cadastral reference value or the real value of the property, the higher of the two being applied.

1. Cadastral reference value: This is an estimate of the market value of the property based on data from the Cadastre. In 2022, this reference value was introduced to provide a standard that the administration uses instead of relying only on the purchase value declared by the buyer and seller.
   
2. Actual purchase value: Corresponds to the purchase price declared in the deed of sale, i.e. the price for which the property was purchased.
   
3. Taxation criteria: ITP is calculated on the highest value between the cadastral reference value and the actual purchase value. This ensures that the tax collects a percentage that reflects the actual value of the property, reducing the possibility of under-declarations of value to reduce the tax cost.
   

Example of calculation:

If you buy a flat in Almeria for 100,000 euros and the cadastral reference value is 120,000 euros, the ITP will be calculated on the 120,000 euros, as this is the higher value.

This regulation helps to unify valuation criteria throughout Spain and allows the administration to apply an objective value to reduce discrepancies or subjective valuations.

3. ITP Tax Rates in Andalusia

• The Junta de Andalucía establishes various tax rates depending on the transaction:
  
  • Transfer of real estate (general): 7% of the highest value between the cadastral reference value or the purchase value of the property.
    
  • Reduced rate for those under 35 years of age: if a habitual residence is acquired and certain conditions are met (such as the value of the property does not exceed an established limit), the rate is reduced to 3.5%. In the province of Almeria, the limit for applying the reduced rate of 3.5% in the Transfer Tax (ITP) for those under 35 years of age depends on the regulations in force in Andalusia. Currently, this limit is set at 150,000 euros for the main residence, although it is important to check with the Andalusian Regional Ministry of Finance or the corresponding office, as these limits may be updated periodically.
    
  • Large families: In Almeria, large families can access a reduction of the tax rate to 3.5% in the Transfer Tax (ITP) when purchasing a primary residence. The specific requirements to benefit from this reduction are as follows: It is important to check these requirements with an Andalusian tax office or tax advisor, as they may be subject to change or additional conditions.
    
    1. The property must be the main residence: The property purchased must be the main residence of the large family.
       
    2. Maximum value of the property: The value of the property must not exceed 250,000 euros.
       
    3. Residence in Andalusia: At least one of the family members must reside in Andalusia.
       
    4. Large family certificate: It is necessary to have the official large family certificate issued by the Junta de Andalucía and in force at the time of purchase.
       
    5. Permanence in the property: The family must reside in the property for at least the following three years, unless there are justified reasons for not doing so, such as moving for work reasons.
       

4. Deadlines and Payment Procedure

• The buyer must pay the ITP within 30 working days of signing the deed of sale.
  
• The payment is made at the Tax Agency of Andalusia or at its provincial offices in Almeria. It is possible to present the form 600 on paper or by telematic means.
  
• Once the tax has been paid, the buyer receives the corresponding self-assessment, which must be presented at the Land Registry in order to register the property in his name.
  

5. ITP on Inheritance and Donations

• ITP is also applied to inheritances and donations in the form of Inheritance and Gift Tax. Although inheritances and donations from parents to children and between spouses are subsidised in Andalusia, it is advisable to check the regulations, as these exemptions may vary.
  

6. Consequences of an Incorrect Value Declaration

• In the event that the administration considers that the declared value is lower than the real value, it can carry out a value check and demand payment of the difference, plus interest for late payment. This means that many buyers prefer to declare a purchase value close to the market value.
  

ITP can be one of the most relevant tax charges for buyers of second hand properties in Almeria, so it is convenient to know the bonuses and deductions to minimise the cost.