Buying a second-hand property in Andalucia will become cheaper from next year under tax cuts announced by the regional government.

The Junta de Andalucia will reduce the general Property Transfer Tax – known as ITP – from 7% to 6.75% in 2027.

It means the tax bill on a €200,000 resale property will fall from €14,000 to €13,500, saving the buyer €500.

Someone purchasing a €400,000 home would save €1,000.

The change only affects resale properties.

Regional economy minister Carolina España said around 146,500 people were expected to benefit from the reforms during 2027.

The Junta intends to reduce the general ITP rate by a further 0.25 percentage points each year until it reaches 6% by the end of the current parliamentary term.

The government is also increasing the maximum property price eligible for Andalucia’s reduced 6% ITP rate.

This currently applies to qualifying purchases of primary residences costing no more than €150,000. From 2027, that ceiling will rise to €200,000.

A qualifying buyer purchasing a €180,000 home would therefore pay €10,800 under the reduced rate, rather than €12,600 at the current general rate – a difference of €1,800.

The price limit for the super-reduced 3.5% rate will also increase to €200,000.

That discount is available to certain groups facing greater difficulty accessing the housing market, including buyers under 35, victims of gender violence or terrorism and people purchasing homes in municipalities at risk of depopulation.

For people with disabilities and large families, the maximum qualifying property price will rise to €300,000.

On a qualifying €200,000 purchase, the 3.5% rate produces a tax bill of €7,000 – half the €14,000 currently charged under the standard 7% rate.

España said housing would be a central priority for the regional government over the coming years.