With housing prices rising and access to the property market becoming increasingly difficult for many, several experts insist that measures are needed. One option on the table is to reduce or even eliminate the Property Transfer Tax (ITP), which is especially high in Catalonia.
It’s not a new idea. For years, some professionals have been calling for changes to the Catalan ITP. Economist Gonzalo Bernardos is clear: “If the autonomous communities want to make homebuying easier, especially for first-time buyers, the most effective measure would be to lower or remove the ITP. This would result in a fairer tax system and a more accessible market.”
Juan Ignacio Gorospe, Professor of Financial and Tax Law at CEU San Pablo University, agrees. “Yes, taxes can be lowered. Catalonia has very high rates for Onerous Property Transfers. Just look at Madrid, where the rate is 6%.”
In Catalonia, by contrast, the rates are progressive and have risen to 13% since June 27, 2025. The scale is as follows: up to €600,000, 10%; the next €300,000, 11%; the following €600,000, 12%; and from €1,500,000 upward, 13%.
Gorospe offers a clear example: if you buy a €500,000 flat, you pay €30,000 in Madrid and €50,000 in Catalonia. For a €2 million home, the tax is €120,000 in Madrid and €230,000 in Catalonia—more than double.
And there are more hurdles. Since June 27, 2025, a 20% rate has also applied to property transfers when the buyer is a major landlord (individuals or companies with more than 10 homes or more than 1,500 m² of residential use in Catalonia, or those with five or more homes in stressed market areas). This special rate also applies to the sale of entire buildings, whether or not they have horizontal division.
What would all this change? If the ITP in Catalonia were reduced or eliminated, experts see a real opportunity to improve access to housing. They say that access to a home remains one of Spain’s biggest economic challenges, especially for young people, and that the ITP is one of the main obstacles—often above 10% and among the highest in Europe.
Gorospe adds that lowering both the ITP and the Stamp Duty (AJD) would make it easier to buy a flat. “That would increase sales and stimulate the real estate market. But the underlying problem remains the lack of land. It should be liberalized throughout Spain.”
The professor also explains why Catalonia maintains such high taxes: they apply an expansive fiscal policy, they do not want to cut spending, and therefore they raise taxes. Furthermore, when revenues increase, spending usually grows as well because new structures are created that need to be maintained.
Even so, Gorospe insists that lowering the rate does not necessarily mean collecting less. If more homes are sold, revenues from the tax might even increase. The opposite is also true: if taxes rise too much, revenues may eventually fall. This is the well-known Laffer curve: raising taxes too high can be counterproductive, and lowering them in some cases can stimulate the economy.
The Catalan government, for its part, justifies these high rates by saying that they help regulate the market, fight speculation, and support vulnerable groups with reduced rates only for certain groups and low-value primary residences. For example, a 5% rate applies to first-time buyers aged 35 or under, provided their taxable income does not exceed €36,000 and the property costs up to €300,000. There are also special conditions for large families, single-parent families, people with disabilities, and victims of gender-based violence.