Save on taxes when buying a home: rebates and reduced rates
Real estate
Buying a home is not just about paying the price you agree with the seller. There are also notary and registration fees and, above all, taxes. And this is where many buyers encounter surprises: the Property Transfer Tax (ITP) on second-hand homes or VAT and Stamp Duty (AJD) on new homes can add up to tens of thousands of euros.
The good news is that the law provides for reduced rates for certain groups and situations. Knowing about them can make the difference between just about making ends meet or being able to breathe a little easier after the purchase. We explain it in this article.
When do you pay ITP and when do you pay VAT?
- Second-hand property → you pay ITP - Property Transfer Tax (general rate 10% in Catalonia).
- New homes → you pay VAT – Value Added Tax (10% general rate) + AJD – Stamp Duty (1.5% in Catalonia).
From there, reductions come into play, which can significantly lower the final bill.
Tax relief for young people, families and other groups
Group or situation | ITP | VAT | AJD |
|---|---|---|---|
General rate | 10 % | 10 % | 1,5 % |
Young people ≤ 35 years old | 5 % | — | — |
Large families | 5 % | 4 % | — |
Single-parent families | 5 % | 4 % | — |
People with disabilities | 5 % | 4 % | — |
Social housing (VPO) (VPO) | 5 % | 4 % | 0,1 % |
Municipalities at risk of depopulation | 4 % | — | — |
Rural municipalities requiring special attention | 3 % | — | — |
* Information valid as of October 2025. In the event of regulatory changes or to consult the complete list of cases, we recommend reviewing the updated data on the official website of the Tax Agency of Catalonia: Rates, tax rates and fees - gencat.cat
Example of actual tax savings on the purchase of a home:
Imagine you buy a second-hand flat for €200,000:
- If you apply the general rate (10% ITP): €20,000 in tax.
- If you are a large family and you use it as your primary residence: 5% → €10,000.
- Actual savings: £10,000.
These savings could allow you to furnish your flat, renovate the kitchen or simply breathe a little easier after the purchase.
What do you need to know to benefit from tax breaks?
- The property must be your primary residence. Most reductions require that you live there and be registered as a resident for a minimum number of years.
- The percentages are not cumulative. The most beneficial option applies in each case.
- Financial requirements matter. In the case of young people, income must be below a certain threshold.
- Documentation is key. Always carry your large family card, disability certificate or any other documentation that entitles you to the discount.
- Check the rules in your area. Rates and requirements vary depending on the autonomous community, and there may also be municipal assistance available.
Summary: how to pay less tax when buying a home
When you are considering buying a home, bear in mind that the final bill does not depend solely on the sale price. Taxes can make the transaction much more expensive, but if you are young, have a large or single-parent family, have a disability or want to settle in a rural municipality, you can pay much less than it seems at first glance.
In a transaction as large as buying a home, knowing about and taking advantage of reduced rates is not just a detail: it is a savings opportunity that is worth exploring.
If you are considering buying a property, seeking specialist advice can help you optimise your investment. At Grup Carles Immobiliaris, we offer comprehensive support: from searching for your flat or house to taking advantage of the tax breaks you are entitled to.
Your new home awaits you.
