Investment approach
The Tax Ladder by Property Price: 1, 3, 5 and 10 M€
Buying a 5 M€ resale property in Catalonia, ITP on the ATC scale is 620 000 €, or 12,4% of the price. Four prices in one table, and the taxes that depend on price differently.
Buying a resale property for 5 M€ in Catalonia, ITP (impuesto de transmisiones patrimoniales, the property transfer tax) on the Agència Tributària de Catalunya scale is 620 000 €, or 12,4% of the price; at 10 M€ the tax is 1.27 M€, or 12,7% (ATC, scale for transactions from 27 June 2025). A tax ladder is a calculation of a deal's taxes at several prices for the same property, to see which taxes grow faster than the price and which do not. Below is the calculation for 1, 3, 5 and 10 M€ and the questions for the asesor fiscal (tax adviser).
How much ITP on a resale property at 1, 3, 5 and 10 M€?
The buyer pays ITP when the seller is not acting as a business, or when the transaction is exempt from IVA (impuesto sobre el valor añadido, Spanish VAT) (art. 7.5 TRLITPAJD). The ATC general scale: 10% on the part of the value up to 600 000 €, 11% on the part from 600 000 to 900 000 €, 12% up to 1.5 M€ and 13% above. The tax is computed in bands, so the average rate grows more slowly than the marginal one.
| Property price | ITP on the general scale | Average rate | If the rate is 20% |
|---|---|---|---|
| 1 M€ | 105 000 € | 10,5% | 200 000 € |
| 3 M€ | 360 000 € | 12,0% | 600 000 € |
| 5 M€ | 620 000 € | 12,4% | 1 M€ |
| 10 M€ | 1.27 M€ | 12,7% | 2 M€ |
The 20% rate applies to housing only: it applies if the buyer is a gran tenedor (large holder; the ATC criteria rest on the number of homes and the housing floor area in Catalonia) or if an entire residential building (edificio entero de viviendas) is bought, with the exceptions the ATC lists separately, for example a purchase as the buyer's own permanent home. The conditions are explained in the articles on progressive ITP and the 20% rate. Whether your structure buys as a gran tenedor is for the asesor fiscal to determine.
How much IVA and AJD when buying from a developer?
On the first transfer of housing, IVA of 10% and AJD (actos jurídicos documentados, stamp duty on notarial documents) of 1,5% are paid instead of ITP (art. 91 Ley 37/1992 and ATC). The 10% applies to housing with up to two garages and annexes; the rest is taxed at the general rate of 21% (art. 90).
| Price excl. IVA | IVA 10% | AJD 1,5% | Total | ITP on resale |
|---|---|---|---|---|
| 1 M€ | 100 000 € | 15 000 € | 115 000 € | 105 000 € |
| 3 M€ | 300 000 € | 45 000 € | 345 000 € | 360 000 € |
| 5 M€ | 500 000 € | 75 000 € | 575 000 € | 620 000 € |
| 10 M€ | 1 M€ | 150 000 € | 1.15 M€ | 1.27 M€ |
The AJD base in these deals is the highest of the valor de referencia (the official reference value), the declared value and the price (ATC), so in practice the figure may differ from the table. By my calculation, the break-even point is at 2 M€: there the average ITP rate is 11,5%, the same as IVA 10% plus AJD 1,5%. Up to that price ITP is cheaper, above it more expensive. For a business with the right to deduct IVA the picture is different, and that is a question for the asesor fiscal. More detail: IVA or ITP on a new build.
Which sale taxes do not scale linearly with price?
Sale taxes are not calculated on the price but on the gain or on the cadastral value of the land.
| Tax | Calculated on | Rate |
|---|---|---|
| Plusvalía municipal (municipal land-value gain tax) | Cadastral land value and holding period | Ayuntamiento rate, maximum 30% (art. 108 TRLRHL) |
| IRPF (personal income tax) for a resident | Capital gain | Savings-base scale 19–30%: the sum of the state and regional parts (arts. 66 and 76 Ley 35/2006), as worded since 2025 and also applicable in 2026 |
| IRNR (non-resident income tax) for a non-resident | Capital gain | 19% (art. 25.1.f TRLIRNR) |
| Impuesto sobre Sociedades (corporate tax) | Company profit | General rate 25%; lower rates for companies with turnover up to 1 M€ and for new companies (art. 29 LIS) |
Plusvalía does not rise with the deal price: in the general case its base is the land value per the cadastre, and if the real increase in land value is smaller, the taxpayer may prove it and pay on that (art. 107.5 TRLRHL). Real Decreto-ley 29/2026 of 6 October (in force from 8 October, not validated by Congress at 13.10.2026) provides new maximum calculation coefficients from 1 December 2026; if Congress rejects it, they lapse (BOE-A-2026-20823). They are not included in this article's calculations.
Worked example, not a forecast and not a DNPI project. A capital gain of 1 M€ with no deductions or treaties. IRPF on the savings-base scale (2025 and 2026): 71 880 € on the first 300 000 € plus 30% of the remaining 700 000 € (210 000 €), 281 880 € in total. IRNR at 19%: 190 000 €. Corporate tax at 25%: 250 000 €, plus tax on taking the money out to the owners. The difference between resident and non-resident here is 91 880 €, and it depends on the size of the gain, not on the property price.
Who this ladder does not suit
Someone who needs a final calculation: it leaves out the notary, the registry, reduced rates, IVA deduction, the SL regime (sociedad limitada, Spanish private company) and double-taxation treaties. Someone who estimates tax as a «percentage of the price»: ITP grows non-linearly, and the sale tax is tied to other bases altogether. And someone looking for a way to cut the tax: that is the asesor fiscal's job, not a table's.
Questions for the adviser: which ITP or IVA rate applies to my seller and buyer, whether I am a gran tenedor, what tax is paid on sale and where it is credited at home. The general order is collected in the 25 questions for the asesor fiscal, and your deal budget can be estimated in the calculator.
Questions and answers
How much ITP when buying a 5 M€ property in Catalonia?
On the ATC general scale, 620 000 €, or 12,4% of the price. If it is housing and the buyer is a gran tenedor, or an entire residential building is bought, the rate is 20%, which is 1 M€.
Which is cheaper at 3 M€, ITP or IVA with AJD?
By the table above, ITP is 360 000 €, while IVA 10% with AJD 1,5% come to 345 000 €. Which regime applies is set by the seller's status and the type of property, not by the buyer's choice.
Does the buyer pay plusvalía?
On a sale for consideration the seller pays it, and if the seller is a non-resident individual, the buyer pays as substitute taxpayer (art. 106 TRLRHL).
Do taxes on the gain rise with the price?
Not in proportion to the price: they are calculated on the gain, not on the deal price. For a resident the scale rate rises to 30%; for a non-resident it is 19%.
