International experts agree that the Property market continues to attract buyers from many countries. Many buyers in Andalucia are continuing to take advantage of the reductions in taxes that took place some years ago and have continued into 2025.
In Andalucia the principal property tax transmission tax – ITP – on resales is currently 7%. This, together with the favourable Inheritance tax and reduced Gift tax rates for families in Andalucia, makes this area of Spain a good place to buy property.
In the Canary Islands, transmission tax on resales is 6.5% and Vera Liprandi, at our Tenerife offices, is able to advise on all aspects of your purchase and on making arrangements for your residence if you decide to settle in the Canary Islands and obtain a Visa. The Canary Islands also has attractive Gift and Inheritance tax rates.
In other regions of Spain the tax on purchasing property does vary. For example, at present Murcia has a flat rate of 10%. Some areas such as Majorca have varying rates depending on value. For new constructions you pay Iva at 10% at current levels. It is 21% for commercial property and plots of land.
The Spanish property market is now strongly regulated and property rights are protected by Land Registration and the Notarial system. Although a Deed is signed before a Notary it is still very important to have an independent conveyancing lawyer to check all aspects of a purchase including land registration, licensing, taxation aspects and contracts.
This is important whether you intend to use the property as a holiday home or to rent out. We can arrange licensing for tourist rentals and provide all the advice you need to keep up to date with Town Hall taxes, Community charges etc.
If you have seen properties that you may be interested in we will quickly carry out the necessary searches to ensure that you can reserve the property while arranging financing. Where required we can arrange Powers of attorney to complete the purchase. We offer an initial 45 minute Free consultation for Property purchases and sales and our International advisers also speak Dutch, Italian, Polish, French and German. All our lawyers and administrators speak English. Please contact us for a consultation at [email protected] or call on +34 952 527014. For our Canary Island office call on +34 922 719 520.