Sorello Guides

Transfer tax (ITP) and stamp duty (AJD) in Community of Madrid

Community of Madrid taxes the transfer of immovable property at 6 %, one of the lightest rates in Spain. It applies in every municipality it contains: a town hall sets what you pay each year, never what you pay at the deed. One rate covers the whole price in Community of Madrid: there is no progressive scale to work through. No general reduced rate is published here; relief takes the form of a reduction of the tax rather than of the rate.

The rates, and where each one comes from

Rates, with the article each was read from
What it applies toRateLegal basis
Transfer of immovable property6 %art. 28.1 TR aprobado por D.Leg. 1/2010 (redacción art. 1.Dos Ley 6/2013)
Stamp duty on notarial documents0,75 %art. 36 TR aprobado por D.Leg. 1/2010 (redacción art. 1.Cinco Ley 6/2013)

What that costs

Transfer tax due
Declared valueTransfer tax due
180.000 €10.800 €
450.000 €27.000 €
900.000 €54.000 €

Illustrative declared values, not market figures.

Stamp duty is not added on top

Stamp duty appears on a purchase in one case only: a new-build from a developer carries VAT instead of transfer tax, and the deed is then stamped at 0,75 %.

In context

Set against every other region in this guide, its transfer-tax rate is the lowest.

On stamp-duty rate it sits lowest of the regions in this guide.

The reduced rates, and who actually qualifies

Community of Madrid publishes no general reduced rate for a habitual residence or for young buyers in the source used here. That does not mean no relief exists: several territories give relief as a reduction of the tax due rather than as a different rate, and those are deliberately not shown above, because a reduction of the tax is not a rate and putting it in a rate column would mislead. Check the regional tax office for the relief that applies to your own circumstances.

Municipal guides in this territory

Sources and licences