A phased cut to transfer tax, a wealth tax realignment and a 99% inheritance tax bonification are set to reshape the cost of owning property in Andalucía. Here is what is confirmed, what remains pending budget approval, and what it means for foreign and crypto-funded buyers.
Andalucía’s July 2026 PP–Vox governing pact commits the Junta de Andalucía to a progressive 0.25-point annual cut to the general Impuesto de Transmisiones Patrimoniales (ITP) rate, alignment of the regional wealth tax with the national scale, and a 99% bonification on inheritance and gift tax. These measures require annual budget approval through 2030 and apply to open-market property purchases; a separate 10-year residency requirement affects only subsidized housing (VPO), not market-rate acquisitions by international buyers.
- What Changed: The PP–Vox Fiscal Package
- Transfer Tax (ITP): A Gradual Reduction
- Wealth Tax Alignment with the National Scale
- Inheritance and Gift Tax: The 99% Bonification
- Housing Measures and the «Arraigo Territorial» Clause
- Practical Implications for International Buyers
- Legislative Rollout Timeline
- Why Andalucía Remains Attractive
- Pre-Decision Checklist
- Frequently Asked Questions
On 2 July 2026, the Partido Popular and Vox signed a governing agreement securing Juanma Moreno’s third term as President of the Junta de Andalucía, with Vox entering the regional government for the first time through a vice-presidency covering Tourism, Deregulation, Justice and Local Administration. Beyond the political headlines, the 150-point pact contains a fiscal chapter that directly affects anyone who owns, or is considering buying, property in Andalucía.
For international investors — including crypto-funded buyers acquiring property along the Costa del Sol, in Málaga capital, Seville or Cádiz — three measures matter most: a scheduled reduction in transfer tax, a realignment of the regional wealth tax with the more favourable national scale, and a near-total bonification of inheritance and gift tax between close relatives. A fourth measure, tied to «national priority» (prioridad nacional) or «territorial roots» (arraigo) in access to subsidized housing, has generated significant media attention but does not apply to open-market acquisitions. This article separates confirmed fiscal changes from measures that remain subject to future budget negotiations, and sets out what each one means in practice for a non-resident or crypto-funded buyer.
What Changed: The PP–Vox Fiscal Package
The agreement is structured across eleven chapters and commits both parties to jointly negotiate and approve the regional budgets for 2027, 2028, 2029 and 2030 — meaning most fiscal measures will be phased in through successive annual budgets rather than taking effect immediately. The fiscal chapter is described by the Junta as the largest tax reduction package in the region’s history, and mirrors, in several respects, the tax model already in force in the Community of Madrid.
| Tax | Current treatment | Agreed change |
|---|---|---|
| ITP (Transmisiones Patrimoniales) | General rate applies to second-hand property transfers | -0.25 percentage points per year of the legislature, plus a public credit line to finance the ITP payment over 10 years |
| Impuesto sobre el Patrimonio | Regional scale, 0.24%–3.03% | Alignment with the national scale: €700,000 exempt minimum, eight brackets from 0.2% to 2.5% |
| Sucesiones y Donaciones | Already reduced for close relatives (Group I/II) | 99% bonification of the tax quota; progressive extension of the 50% bonification to Group III (uncles/nephews, siblings) |
| IRPF (regional bracket) | Current regional scale | -0.25 points per year on brackets below €60,000, targeting a cumulative 1-point cut |
Transfer Tax (ITP): A Gradual but Real Reduction
ITP is charged on the transfer of second-hand residential property and is typically the largest one-off tax cost in a Spanish property purchase. Under the pact, the general rate will fall by 0.25 percentage points for each year of the four-year legislature, alongside an increase in the property value thresholds that qualify for reduced rates — from €150,000 to €200,000 for buyers under 36 or with disabilities, and from €250,000 to €300,000 for large families. A new public credit line will also allow buyers to finance the ITP payment itself over 10 years, with bonified commissions and interest.
For a buyer acquiring a €2 million villa in Marbella, a full-point reduction phased in over the legislature would represent a meaningful, if gradual, saving on entry cost. The mechanism is structured as an annual step-down rather than a single cut, so the benefit accrues progressively rather than applying retroactively to purchases made before each year’s reduction takes effect.
Wealth Tax Alignment with the National Scale
The pact aligns Andalucía’s Impuesto sobre el Patrimonio with the national scale rather than adopting Madrid’s full 100% bonification. In practice, this means an exempt minimum of €700,000 and a progressive scale running from 0.2% up to 2.5% for net wealth above roughly €10.6 million — replacing Andalucía’s previous scale of 0.24% to 3.03%. For non-resident property owners whose Spanish wealth tax exposure is calculated on Spanish-situs assets (including real estate), this narrows the top marginal rate but does not eliminate the tax, as has happened in Madrid.
Inheritance and Gift Tax: The 99% Bonification
The most significant change for succession planning is the near-total bonification of Sucesiones y Donaciones for close relatives — spouses, ascendants and descendants — bringing the effective tax quota down to 1% of what would otherwise be due. The pact also commits to progressively extending the existing 50% bonification to Group III relatives (siblings, aunts, uncles, nephews and nieces), and introduces a specific bonification for inheritance of a habitual residence between siblings.
For crypto HNWIs who have already structured wealth around Spanish real estate, or who are evaluating Andalucía against other Spanish and Portuguese jurisdictions for estate planning purposes, this materially reduces the tax cost of transferring Spanish property to the next generation within the family, independent of any holding structure used during the owner’s lifetime.
Housing Measures and the «Arraigo Territorial» Clause — Why It Does Not Affect Market Buyers
The pact also commits to building at least 20,000 subsidized homes (VPO) through public-private partnerships over the legislature, doubling the housing budget from roughly €800 million to €6.4 billion across the four-year term. Access to this subsidized stock — and to social rental housing — will be governed by a «national priority» or «territorial roots» (arraigo) principle requiring at least 10 years of registered residency (empadronamiento) in Spain to purchase, and 5 years to access social rental.
Practical Implications for International and Crypto-Funded Buyers
- Model the ITP saving as a multi-year curve, not a day-one discount. Budget for the current rate at signing; treat the 0.25-point annual reduction as a factor in timing decisions for buyers with flexibility on when to close.
- Re-run wealth tax exposure under the new national scale. Owners of high-value Andalusian property, particularly those already resident or contemplating residency under Beckham Law, should have their advisor recalculate annual wealth tax liability against the revised €700,000 exempt minimum and bracket structure.
- Revisit succession and holding structure decisions in light of the 99% inheritance bonification. Where a Luxembourg holding or trust structure was adopted partly to mitigate inheritance tax exposure, the calculus may shift once the bonification is confirmed in an approved budget.
- Confirm that any structuring advice distinguishes VPO from open-market property. The arraigo/residency requirement is frequently reported in general media as a broad housing-access restriction; buyers should confirm with counsel that their target property falls outside the VPO regime before assuming any restriction applies.
- Track the annual budget cycle. Because implementation depends on the 2027–2030 budgets, buyers with multi-year acquisition or relocation plans should build a checkpoint into their timeline to confirm which measures have actually been approved each year.
Legislative Rollout Timeline
Why Andalucía Remains an Attractive Jurisdiction for International Buyers
Structural strengths that predate — and outlast — any single tax reform
- Latin notarial system: Spanish notaries perform ex ante legal control on every transfer, verifying title, encumbrances and, where relevant, source of funds before execution — a structural safeguard independent of the current tax debate.
- Land Registry reliability: The Registro de la Propiedad provides constitutive, publicly verifiable registration of ownership and charges, giving foreign buyers a level of title certainty that is not universal across Southern European markets.
- Established international investor base: Marbella and the wider Costa del Sol have decades of infrastructure serving non-resident buyers — from bilingual notarial practice to specialised legal and banking services for cross-border acquisitions.
- Now paired with a lower entry-cost trajectory: A declining ITP rate, a capped wealth tax exposure and a near-eliminated inheritance tax for close relatives combine, over the coming legislature, to reduce the total lifecycle tax cost of owning Andalusian property — while the underlying legal infrastructure remains unchanged.
Pre-Decision Checklist for International Buyers Evaluating Andalucía
- Confirm the ITP rate actually in force at your intended signing date, not the rate projected for a future budget year
- Verify whether your target property is classified as VPO/subsidized housing or open-market stock before assuming any residency restriction applies
- Request an updated wealth tax projection under the national scale if you already hold, or plan to hold, Spanish real estate directly
- Review whether your existing or planned holding structure (SL, Luxembourg vehicle, trust) still serves its original purpose given the new inheritance tax bonification
- Ask your advisor to flag which specific measures have been confirmed in an approved Andalusian budget versus which remain pact commitments
- Cross-check Beckham Law eligibility and IRNR treatment against your residency timeline and the regional tax changes
- Confirm AML source-of-funds documentation requirements independently — these are unaffected by the fiscal pact and remain governed by Ley 10/2010
- Reassess timing if the ITP step-down materially affects your total transaction cost and your acquisition timeline has flexibility
Frequently Asked Questions
What tax changes does Andalucía’s 2026 PP-Vox pact introduce for property buyers?
The pact commits to a progressive 0.25-point annual reduction in the general ITP (transfer tax) rate, alignment of the regional wealth tax with the more favourable national scale, and a 99% bonification of inheritance and gift tax for close relatives. These measures depend on approval within the regional budgets for 2027 through 2030 and are not yet fully in force.
How much will transfer tax (ITP) fall in Andalucía under the new pact?
The general ITP rate is scheduled to fall by 0.25 percentage points for each year of the four-year legislature, alongside expanded thresholds for reduced rates for young buyers, buyers with disabilities, and large families. A new public credit line will also allow the ITP payment itself to be financed over 10 years.
Does Andalucía’s wealth tax change affect foreign property owners?
Yes. The regional wealth tax will be aligned with the national scale, raising the exempt minimum to €700,000 and applying a progressive scale from 0.2% to 2.5% on net wealth above approximately €10.6 million, replacing Andalucía’s previous 0.24%–3.03% scale. Unlike Madrid, Andalucía does not eliminate the wealth tax entirely.
What is the new inheritance tax bonification in Andalucía?
The pact introduces a 99% bonification on the Impuesto sobre Sucesiones y Donaciones for spouses, ascendants and descendants, effectively reducing the tax quota to 1% of what would otherwise be due. The existing 50% bonification for Group III relatives (siblings, aunts, uncles, nephews and nieces) is set to be progressively extended.
Does the «arraigo territorial» residency requirement affect international buyers of market-rate property?
No. The 10-year registered-residency requirement applies specifically to access to subsidized housing (VPO) and social rental allocation. It does not impose any residency test on open-market residential purchases, which is how the large majority of international and crypto-funded acquisitions in Andalucía are structured.
Is Andalucía still an attractive jurisdiction for Golden Visa-style relocation despite these reforms?
The pact does not alter Spain’s national Golden Visa framework, which is set at state rather than regional level. What it changes is the regional tax environment surrounding a property acquisition — a declining ITP rate, a capped wealth tax, and a substantially reduced inheritance tax — layered on top of Andalucía’s existing notarial and Land Registry infrastructure.
When will these tax measures actually take effect?
Most measures are structured as annual steps tied to the regional budgets for 2027, 2028, 2029 and 2030, which PP and Vox have committed to negotiate and approve jointly. Because each year’s measure depends on that year’s budget passing, buyers should confirm the rate actually in force at the time of their transaction rather than assuming the full reduction already applies.
How does Andalucía’s reform compare to Madrid’s tax model?
The Andalucía pact mirrors several features of Madrid’s regional tax model, particularly on inheritance and gift tax. However, Andalucía aligns wealth tax with the national scale rather than adopting Madrid’s 100% bonification, meaning Madrid remains the more favourable jurisdiction specifically for wealth tax exposure, while Andalucía’s inheritance tax treatment now closely matches it.
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