How ITP is calculated in the Canary Islands
ITP = taxable base × rate. The taxable base is the higher of two values: the price stated in the deed and the reference value the Cadastre publishes for that property. If you pay less than the reference value, the tax office will charge the tax on the reference value.
The general rate in the Canary Islands is 6.5%, one of the lowest in Spain. Reduced rates apply to the main home of certain groups, such as young people, large families or people with disabilities, as long as they meet age, income and property value limits. Those limits are revised in the Canary Islands budget laws, so before applying them check with the Canary Islands Tax Agency.
When you do not pay ITP
When you buy a new build directly from the developer. In that case the purchase carries IGIC (7% on open-market housing) and AJD. If you buy a new home from a private owner who has already lived in it, it counts as resale again and you pay ITP.
How and where it is paid
It is filed with the Canary Islands Tax Agency’s self-assessment form within a short period after signing the deed. The gestoría or the notary can handle it. With the payment receipt, the Land Registry registers the property in your name. To see the ITP together with the other costs, use the buying costs calculator.
Frequently asked questions
How much is ITP in the Canary Islands in 2026?
The general rate is 6.5% on the price or the reference value, whichever is higher. For a €200,000 home, that is €13,000.
Who pays the ITP, the buyer or the seller?
The buyer. The seller pays, where applicable, the municipal capital gains tax and income tax on the gain.
What happens if the price is lower than the reference value?
The tax is calculated on the reference value. You can appeal if you believe that value is above market value, but the self-assessment is done with it.
Is there a reduced ITP for young people in the Canary Islands?
Yes, there are reduced rates for the main home of young people and other groups, with age, income and property value limits. Choose “Reduced” in the calculator and confirm the current requirements with the Canary Islands Tax Agency.