Andalusia Property Tax Reform 2026: Why Spain Didn’t Get More Expensive, Just More Precise

If you are considering buying property in the Costa del Sol, you may have seen headlines about tax reforms in Andalusia coming into effect from 2026. On the surface, it can sound unsettling, especially if you are buying from abroad and already navigating a different legal and tax system.

The reality is more nuanced. Spain has not suddenly become hostile to international buyers. What has changed is that the system now rewards clarity and planning more than speculation and guesswork.

For most lifestyle buyers and long term investors, that distinction matters.

What Actually Changed in 2026

The key adjustment affects how property transfer tax (ITP) works for professional buyers who purchase property with the intention of reselling.

The standard ITP rate on resale properties in Andalusia remains at 7 percent. That applies to the vast majority of buyers and has not changed.

What has changed is the scope of the reduced 2 percent ITP rate that was previously available to professional buyers and developers.

• The reduced 2 percent rate is now limited to properties with a total declared value of up to €500,000, including garages and storage units.
• The timeframe to resell the property and retain the reduced rate has been shortened from five years to two years.

For properties above €500,000, the reduced rate no longer applies, regardless of whether the buyer intends to resell.

Why This Is Not Bad News for Most International Buyers

If you are buying a home in Marbella, Estepona, Benahavís or surrounding areas for lifestyle, long term use, or steady rental income, this reform does not materially change your position.

You were likely budgeting for the standard transfer tax already. What this reform really targets is short term speculative buying at the higher end of the market, where tax advantages were sometimes relied upon to make deals work.

In practical terms, this has three important effects.

1. Less speculation at the top end

By removing the reduced tax incentive on higher value properties, the reform discourages quick flip behaviour in premium areas. That can reduce artificial price inflation and excessive competition on homes that are intended to be lived in, not simply traded.

For genuine buyers, that can be a positive shift.

2. More predictable decision making

The rules are now clearer. Either a property qualifies for the reduced rate or it does not. That certainty matters for international buyers who want to understand their total costs before committing, rather than discovering surprises later.

3. Greater emphasis on planning rather than speed

The shorter resale window means that professional buyers must plan renovations, legal processes and exit strategies far more carefully. This reduces the margin for rushed or poorly thought out deals, which often distort local markets.

The Bigger Lesson for Buyers

The most important takeaway from the 2026 reform is not about tax percentages. It is about how you approach buying property in Spain.

Trying to optimise a purchase purely around tax treatment, especially at higher price points, is now a weaker strategy. What matters more than ever is:

• Choosing the right area based on how you actually plan to live or use the property
• Understanding timelines, especially if renovation or resale is involved
• Budgeting realistically for total acquisition costs, not just headline price

For international buyers, clarity at the beginning protects you far more than clever structuring at the end.

Does This Change When You Should Buy?

For most buyers, the answer is no. The Costa del Sol remains one of the most active and resilient property markets in Spain, driven by lifestyle demand, international interest, and limited prime supply.

What has changed is that deals now favour buyers who are deliberate rather than speculative. If you know why you are buying, where you want to live, and how long you intend to hold the property, this reform does not work against you.

Final Thoughts

The Andalusia tax reform for 2026 does not make buying property here more difficult. It makes it more precise.

For buyers who value lifestyle, long term security and clear planning, that precision can actually be reassuring. The key is to approach the process with the right guidance, realistic expectations, and a focus on how the property fits into your life, not just your spreadsheet.

If you are considering buying property in the Costa del Sol and want clarity on how these changes apply to your situation, getting advice early makes all the difference.