Andalusia Tax Reform 2026- What Property Investors Should Know

The Andalusian Parliament approved the 2026 Regional Budget on 18 December 2025, introducing a number of fiscal measures with direct consequences for real estate investors. Among the most significant is a reform of Article 44, which governs the reduced 2% Property Transfer Tax (ITP) available to professionals purchasing property for resale. The implications for investors active in markets such as Marbella and the Costa del Sol are substantial.

The key changes

A new price limit of €500,000 and reduction of resale period from 5 to 2 years

The standard trasfer tax rate is of 7% (payable by the buyer) but until now could be reduced to 2% in cases where the acquisition of a home, no matter its purchase price was intended for resale and purchased by an individual or legal entity that carries out a business activity to which the rules for adaptation of the General Plan for the Real Estate Sector are applicable. The new owner would have a period of 5 years to sell the property.

From 2026, this benefit will only apply where the combined value of the property and its annexes (including garages and storage rooms) does not exceed €500,000.

Transactions above this threshold will be subject to the standard tax rate of 7%.

In high-value coastal locations, where many projects comfortably exceed this level, acquisition costs will therefore increase immediately.

The resale deadline is cut from five years to two

The second important change concerns the resale period.

Previously, investors had five years in which to resell the asset while retaining the reduced tax rate.

Under the new regulation, this period is reduced to just two years.

This significantly compresses project timelines and increases the importance of efficient execution, particularly for developments involving refurbishment or repositioning.

When the change applies

The reform forms part of the 2026 Andalusian Budget Law, published in the BOJA, and takes effect on 1 January 2026.

Any qualifying purchases completed on or before 31 December 2025 remain subject to the previous framework, with:

• no value cap.
• a five-year resale period.

Market impact

This reform alters the underlying economics of many flipping projects:

• Higher acquisition taxes for assets above €500,000
• A much tighter exit window
• Reduced tolerance for construction delays or market softening

In premium locations such as Marbella, the Golden Mile and Puerto Banús, where most professional transactions exceed the new threshold, investment models will need to be revisited.

Pia Arrieta, 12 Jan 2026 - News