Tax changes in Andalusia 2026: what has changed and how they impact the real estate market
Carmen Duran - Feb 4, 2026 - Pure Living News
The beginning of 2026 has brought a series of tax changes in Andalusia that are already having a direct — and in some cases less visible — impact on the real estate market. This is not a radical overhaul of the system nor a dramatic shift in the rules, but rather a reorganisation of the tax framework that particularly affects investors, professional operators and certain long-term wealth strategies.
Understanding the tax changes in Andalusia 2026 is therefore a practical matter. Not only for those purchasing a property as a primary residence, but also for buyers analysing investment opportunities, resale strategies or medium- to long-term planning in markets such as Marbella and the Costa del Sol.
A tax framework that fine-tunes incentives
One of the key ideas behind the tax changes in Andalusia 2026 is the regional government’s decision to maintain a competitive tax environment while introducing clearer limits and conditions to certain incentives that previously had a much broader scope.
In practice, this means less room for flexible interpretation and a greater need for advance planning, particularly in professional and investment-driven transactions.
The reduced 2% ITP rate: still in place, but with new rules
One of the most significant measures within the tax changes in Andalusia 2026 concerns the reduced 2% Property Transfer Tax (ITP) rate applied to professional investors acquiring properties for resale.
This incentive remains in force, but as of 1 January 2026 it is subject to new conditions set out in Law 8/2025 of 22 December.
The maximum property value may not exceed €500,000, including annexes such as garages or storage rooms.
The maximum resale period has been reduced to two years from acquisition.
Failure to meet these conditions results in the transaction being taxed at the general 7% ITP rate.
In practice, these tax changes in Andalusia 2026 require professional investors to rethink pricing, timelines and investment structures, particularly in markets like Marbella, where property values are well above the regional average.
In this context, Javier Nieto, CEO of Pure Living Properties, highlights the real impact these measures may have on the Costa del Sol market. “From our perspective at Pure Living Properties, this modification to the reduced 2% rate is likely to slow down investment activity seen across the region. Introducing a €500,000 cap effectively excludes the vast majority of transactions in our area. On the Costa del Sol, and particularly in the segment we operate in, investment properties are typically priced well above that threshold — often at one, two or several million euros,” he explains.
Nieto also points to the reduction of the resale period from five years to two as a further operational disadvantage.
“Acquiring, refurbishing and repositioning a property takes time. Limiting that entire process to two years places additional pressure on investors and, in many cases, makes certain projects unviable. As currently designed, this measure does not appear to be aligned with high-end markets such as Marbella or the Costa del Sol and leaves many long-standing investors effectively sidelined,” he concludes.
The general 7% rate remains in place: stability for end buyers
It is worth underlining one of the most frequently asked questions: there has been no general increase in property taxes for buyers in Andalusia in 2026.
The general 7% ITP rate remains unchanged and continues to be one of the most competitive in Spain.
From the end buyer’s perspective, the tax changes in Andalusia 2026 do not result in higher acquisition costs, but rather provide greater clarity regarding which incentives apply and under what circumstances.
Primary residence and disability: extending tax benefits to the family unit
Another of the less visible but relevant tax changes in Andalusia 2026 is the extension of reduced tax rates linked to disability.
From 2026 onwards, the reduced 3.5% ITP rate and 0.1% AJD rate for the purchase of a primary residence apply not only when the buyer has a recognised disability, but also when a member of the household meets this condition, provided the property value does not exceed €250,000.
This adjustment introduces a broader and more realistic view of the family unit within the tax changes in Andalusia 2026.
Donations and wealth planning: fewer changes, stricter formal requirements
With regard to Inheritance and Gift Tax, the tax changes in Andalusia 2026 do not eliminate the well-known 99% tax relief for close relatives, but they do reinforce formal requirements.
Key aspects include:
Stricter public deed requirements.
Shorter deadlines to formalise certain donations.
Greater scrutiny of the origin of funds.
For the premium real estate market, where many acquisitions rely on family wealth structures, this reinforces the importance of proper advance advice.
Usufructs, inheritances and deadlines: practical adjustments
The tax changes in Andalusia 2026 also introduce adjustments to certain administrative deadlines. Of particular note is the six-month period to file tax returns for consolidation of ownership following the death of a usufruct holder, when the original transaction was subject to TPO or AJD.
In addition, the use of the electronic notarial protocol has been reinforced, increasing traceability and administrative control.
Frequently asked questions on the tax changes in Andalusia 2026
Do the tax changes in Andalusia 2026 reduce the appeal of property investment?
Not significantly. Andalusia remains a competitive tax environment, although it now requires more precise planning.
Do these changes affect the Marbella real estate market?
Yes, particularly in professional resale operations and wealth planning, although the prime market remains resilient.
Is buying or investing more complex in 2026?
Not more complex, but more technical. The tax changes in Andalusia 2026 reward well-structured transactions and specialist advice.
Do these tax changes apply retroactively?
No. The tax changes in Andalusia 2026 do not have retroactive effect.
This means that the measures introduced by Law 8/2025 of 22 December apply exclusively to taxable events occurring from 1 January 2026 onwards. Transactions formalised before that date — such as purchases completed in 2025 — remain governed by the regulations in force at the time of the taxable event.
This principle of non-retroactivity provides legal certainty for both buyers and investors and is particularly relevant in professional resale operations and long-term planning strategies.
A market that demands information and expert judgement
The tax changes in Andalusia 2026 reinforce a reality already evident in the premium real estate market: finding the right property is no longer enough. Understanding the tax and wealth context in which a transaction takes place is essential.
At Pure Living Properties, a leading prime real estate agency with more than 16 years of experience in the Marbella market, we support buyers and investors not only in selecting assets, but in making strategic, well-informed decisions, working closely with legal and tax advisers whenever required.
