Catalonia’s escalating property values are meeting higher taxes, as a fifth of second-hand homes on the market now face increased transfer tax rates starting at 11%. The new ITP brackets could mean significantly steeper tax bills for many buyers—especially in hot spots like Barcelona and Girona.
New tax structure targets high-value transactions
As of 27 June 2025, the Catalan government implemented changes to the Impuesto de Transmisiones Patrimoniales (ITP), the tax on the transfer of used properties. The revised tiers apply to all buyers—private individuals included—when property prices cross €600,000. Previously there were two simple brackets: 10% for properties below €1 million, and 11% for any transaction above that threshold.
Under the new Catalan property tax regulations of Decree Law 5/2025, the tax rate increases progressively based on the value of the property purchased:
- 10% on the first €600,000
- 11% on the next €300,000 (i.e., up to €900,000)
- 12% on the next €600,000 (i.e., up to €1.5 million)
- 13% on any amount above €1.5 million
This sliding scale mirrors the familiar structure of Spanish income tax: only the portion that enters a higher bracket is taxed at the corresponding rate. Some groups, such as under-35s and victims of gender-based violence, are exempt from the general scale and pay a reduced 5% rate.
19% of properties in Catalonia priced above €600,000
According to a snapshot of listings on the property portal idealista on the date these measures came into force, roughly 17,400 second-hand homes across Catalonia were advertised for €600,000 or more. That amounts to 19.2% of all homes for sale in the region.
Barcelona is, unsurprisingly, the epicentre of the change. With more than 10,000 such listings, the province accounts for the majority of high-value properties, followed by Girona with nearly 6,000. Tarragona and Lleida trail far behind with less than 1,000 listings each in this price range.
In proportional terms, Girona steals the spotlight: 27.8% of its listings exceed €600,000, compared to 20.6% in Barcelona. In contrast, high-end homes are relatively scarce in Tarragona (6.1%) and Lleida (6.7%).
Barcelona city alone sees one-third of homes affected
In the capital itself, the tax rise has particularly wide reach. Barcelona city has about 4,200 second-hand homes listed above the €600,000 threshold—that’s 35% of all used housing on the market, significantly higher than the province-wide average.
Impact on market behaviour likely limited
Despite the increase, the new tax brackets may not send significant shockwaves through the market. Experts suggest that while the revision raises the cost of closing a deal, it’s unlikely to dissuade serious buyers. Will it sting? Certainly. Will it freeze the high end of the market? Probably not.
The key lies in the incremental nature of the tax. Buyers don’t pay 13% on the entire purchase amount; they pay 10% on the first €600,000 and progressively higher rates only on the amounts that fall within higher brackets.
For example:
- A property bought for €700,000 would generate €71,000 in tax: €60,000 at 10% for the first €600,000, and €11,000 at 11% for the remaining €100,000.
- A €1 million property would be taxed €105,000: €60,000 (10% on €600k), €33,000 (11% on next €300k), and €12,000 (12% on final €100k).
The effective rate across the whole purchase price is therefore always lower than the top marginal rate. For a €1 million property, the average ITP rate works out to roughly 10.5%.
What does this mean for sellers and buyers?
For sellers, particularly those listing at or just above the €600,000 mark, pricing strategy might need rethinking. Buyers doing the maths could bring extra bargaining pressure to keep prices just below bracket thresholds to avoid higher taxes.
Meanwhile, buyers and estate agents will need to factor in steep upfront costs when stretching budgets—especially in markets like Girona, where nearly one in three listings now prompt a higher tax rate.
Looking ahead, one thing is clear: as long as prices keep rising, fewer transactions will stay in the “safe zone” of 10%. For Catalonia’s booming high-end housing market, the tax office is moving in lockstep.
