ITP Reform in Andalusia 2026: Critical Analysis and Repercussions

The Regional Government of Andalusia has approved a new modification of the Transfer Tax (ITP), effective from the second half of 2026. This tax change has raised a strong controversy among real estate professionals, as it directly affects the taxation of the sale and purchase of homes, especially investors, developers and real estate freelancers.

What has changed with respect to the previous regime?

Before (in force until 2026): - Reduced rate of 2% ITP if the property was acquired with a commitment to resale within 5 years. - Applicable to both individuals and legal entities, provided that the purpose of resale was demonstrated. - No price limit per property. Now (from 2026): - Reduced rate of 2% ITP limited to homes up to €500,000. - The resale term is reduced from 5 years to only 2 years. - Applicable to individuals, including self-employed in the sector. - Greater control of the destination of the property is required (use as habitual residence or demonstrable resale).

Practical implications of the new regime

1. There is a tax penalty for investments in homes of more than 500,000 euros, which will be taxed at the general rate of 7%.
2. The 2-year term hinders legitimate operations that require more time, especially when they depend on licenses or integral reforms.
3. It increases the risk for the investor, who could lose the tax benefit if he/she does not manage to resell in time due to external causes (market, administrative delays, etc.).
4. The control over the final use of the property is increased, which can be interpreted as an interference in the buyer's patrimonial freedom.
5. The only advantage is that access is extended to self-employed professionals in the sector, who previously could have been excluded because they did not have a corporate structure.

A change with more shadows than lights

Valido Home considers that this change: - It does not speed up the market, as the Board claims, but rather limits it unnecessarily. - It does not encourage the sale and purchase of affordable housing, since the previous regime already allowed it without price limit. - It increases the pressure on small and medium investors who rehabilitate homes and depend on realistic deadlines. - It generates legal and fiscal uncertainty by leaving access to the reduced rate in the hands of time (and the administration).

Conclusion

The reform of the ITP in Andalusia for 2026 not only changes the rules of the game, but also hardens the ground for those who invest, rehabilitate and dynamize the Andalusian real estate stock. If you are considering buying a property in Andalusia for investment purposes or as a private individual, we recommend that you get good advice before signing. The reduced rate of 2% ITP may seem attractive, but it comes with conditions that not everyone will be able to meet. At Valido Home we help investors, developers and private buyers to understand and correctly apply real estate taxation in Andalusia.

Sources:

• BOJA n.º 185 (September 23, 2025), Decree-Law of reform of the ITP.
• Ministry of Finance of the Regional Government of Andalusia.
• Idealista News.
• Institutional declarations of the Junta (September 2025).