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Decree Law 5/2025 of urgent measures to increase taxes and regulations on wealthy investors, passed by the Catalan government (Govern) on 25 March 2025 and published in the Diari Oficial de la Generalitat de Catalunya (DOGC) on 26 March, introduces significant changes to Property Transfer Tax (ITP) in Catalonia. While the decree came into force on 27 March 2025, the changes to ITP tax rates (Article 5) will take effect from 27 June 2025, three months after publication.
This guide outlines the key changes affecting property-related taxation under the new law, in particular the Property Transfer Tax (ITP) in Catalonia.
1. Reduced Property Transfer Tax rates
Extension of reduced rate for young buyers
The age threshold for accessing the reduced 5% Property Transfer Tax rate for the purchase of a habitual residence has been raised from 32 to 35 years.
New reduced rate for victims of gender-based violence
A 5% Property Transfer Tax rate is now available to victims of gender-based violence purchasing their main home.
2. Progressive rates for higher-value property purchases
The effective ITP rates up to the 27th of June 2025 are as follows: 10% on properties with a sale (or reference price) value of up to €1m and 11% above that.
Two new higher tax brackets have been introduced:
- 12% for properties with a declared value between €900,000 and €1,500,000
- 13% for properties with a declared value above €1,500,000
These rates apply to the portion of the declared value falling within each band.
The existing rates remain in place, with the following revised bands:
- 10% up to €600,000
- 11% between €600,000 and €900,000
According to the Catalan government, only 3% of property transactions in 2023 involved properties with a declared value above €600,000, suggesting the higher rates will affect a relatively small proportion of buyers.
Full scale of new Property Transfer Tax bands (general rate)
The following progressive scale applies from 27 June 2025:
| Property value range (€) | Tax rate (%) | Cumulative tax at top of band (€) |
|---|---|---|
| 0 – 600,000 | 10% | €60,000 |
| 600,001 – 900,000 | 11% | €93,000 |
| 900,001 – 1,500,000 | 12% | €165,000 |
| Over 1,500,000 | 13% | — |
This scale structure applies to general cases not subject to specific reduced or increased rates.
Example using a property purchased for €1m
Here is a breakdown of the Property Transfer Tax (ITP) payable on the purchase of a property in Catalonia for €1,000,000, using the new progressive tax bands:
Calculation based on progressive tax brackets
| Bracket range (€) | Amount taxed (€) | Rate (%) | Tax due (€) |
|---|---|---|---|
| 0 – 600,000 | 600,000 | 10% | 60,000 |
| 600,001 – 900,000 | 300,000 | 11% | 33,000 |
| 900,001 – 1,000,000 | 100,000 | 12% | 12,000 |
Total ITP payable: €105,000
So if you buy a property for €1 million in Catalonia on the 27th of June or thereafter, you will now pay €105,000 in Property Transfer Tax under the new rules. Under the previous rate (up to the 26th of June 2025) you would pay €100,000, so the effective tax rate will be going up by 5% for a buyer paying €1m for a property in Catalonia.
3. Purchases by large property holders
Fixed 20% tax rate : A fixed 20% Property Transfer Tax rate now applies to the acquisition of properties by large property holders (so-called grandes tenedores), a term typically referring to entities or individuals with a substantial number of residential units.
Purchase of whole buildings: The 20% rate also applies to the purchase of entire residential buildings, with an exception for natural persons acquiring up to four dwellings intended for their own or their family’s habitual residence.
4. Tax relief for conversions and business use
50% tax relief has been introduced for:
- The transfer of office buildings or unfinished constructions intended to be converted into officially protected housing (vivienda protegida).
- The transfer of properties designated to become the registered office or work centre of a company or professional business.
The modifications to the Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos Documentados (ITP) tax rates, as outlined in Article 5 of Decreto ley 5/2025, will come into effect three months after the day following the publication of the Decree law in the Diari Oficial de la Generalitat de Catalunya (DOGC).
The Decree law was signed on 25 March 2025, and published on 26 March 2025, so the new ITP tax rates will come into effect on 27 June 2025.
Here is the Spanish version Decree Law 5/2025 published in the official gazette (DOGC)
