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Taxes when buying a home in Canarias: ITP, IGIC and AJD

Real-estate taxation · Canarias

In Canarias, you should not automatically calculate a purchase using mainland VAT.

The Canary Islands tax system has its own indirect tax regime. A usada property is normally subject to Transfer Tax (TPO), while certain transfers of new-build properties are subject to the Canary Islands General Indirect Tax —IGIC— and the deed may also be subject to Documented Legal Acts Tax —AJD—.

Jurisdiction: Canarias Last reviewed: 8 August 2026 FACT-TAX-REG-CAN
View current rates Resale vs. new build
CAN
Short answer

In Canarias, the standard purchase of a resale property is normally subject to ITP, whose general rate for real estate is currently 6,5%. A rate of 5% applies to certain purchases of a main residence with a tax base of up to 200.000 €, in addition to specific benefits that may reach 1% or 0% if all requirements are met. For new-build property, Canarias uses IGIC: property transfers may be taxed at 7%, 5%, 3% or 0%, depending on the property and the buyer's circumstances. Deeds subject to AJD have their own rules, and documents relating to transactions subject to IGIC are generally taxed at 1%, unless a reduced rate applies.

First, classify the transaction

The key question is whether you are buying a usada home or a first delivery

Applying the wrong tax can significantly affect your budget. The Canary Islands regime distinguishes between property transfer tax and business transactions subject to IGIC.

Second-hand property Standard second or subsequent delivery

Second and subsequent deliveries of buildings are, as a general rule, exempt from IGIC.

Usual route → ITP / TPO

For a standard property transfer subject to TPO, the buyer must review the general 6,5% and any rates or reliefs for a primary residence.

New build First delivery by the developer

Where the delivery is subject to IGIC, the applicable regime is the Canary Islands' specific housing regime.

Usual route → IGIC + possible AJD

IGIC may be 7%, 5%, 3% or 0%, depending on the characteristics of the property, its intended use and the buyer's requirements.

Canarias does not use mainland VAT for these transactions

Do not automatically apply the 10% VAT rate applicable to certain new homes in mainland Spain and the Balearic Islands. Canarias has its own indirect taxation system: IGIC.

Verified main rates

Summary of ITP, IGIC and AJD in Canarias

These rates are legal references in force as of the review date. Reduced rates may only be applied when all substantive and formal requirements established by the regulations are met.

Tax Scenario Type Main condition
ITP / TPO Standard property transfer 6,5% General regional rate.
ITP / TPO Certain primary residences 5% Among other requirements, taxable base ≤ 200.000 € and rules on ownership of another home.
ITP / TPO Large family 1% Primary residence + income limits + ownership requirements.
ITP / TPO Disability ≥ 65% 1% Primary residence + income limits + other legal requirements.
ITP / TPO Single-parent family 1% Primary residence + income limits + other legal requirements.
ITP / TPO Subsidised housing 0% First primary residence and the requirements of Article 34.
IGIC Property with no specific rate 7% General IGIC rate.
IGIC Certain primary residences 5% Primary residence + tax base limits and ownership requirements.
IGIC Primary residence with protected circumstances 3% Age, large family, disability, gender-based violence, single-parent family or income, in addition to the remaining requirements.
IGIC Certain protected housing delivered by the developer 0% Special/general VPO regime or public development, subject to legal conditions.
AJD Taxable notarial documents 0,75% General Canary Islands rate.
AJD Documents relating to transactions subject to IGIC or IVA 1% Where the requirements for the graduated AJD charge are met.
AJD Certain primary-residence purchases 0,40% Only where the specific requirements of Article 37 are met.

Resale property

ITP in Canarias: 6,5% general rate and 5% for certain primary residences

Legislative Decree 1/2009 establishes a general rate of 6,5% for transfers of real property. For certain purchases of a main residence, a rate of 5% applies.

ITP

General rate

6,5%

This is the general rate applicable to transfers of real property and certain rights in rem over such property.

HAB

Main residence

5%

It may apply where the property is to constituir the main residence, the taxable base does not exceed 200.000 € and the rules regarding ownership of another property are met.

Rule regarding another property

For the 5% rate, at the time the tax liability arises, the taxpayer may not be the owner, bare owner or usufructuary of another home; if they are, the rules allow the requirement to be met by transferring those assets or rights by public deed within the statutory two-year period.

Regional tax benefits

Some main-residence buyers may be taxed at debajo del 5%

Reduced rates do not apply simply because a buyer belongs to a particular group. Each article sets out cumulative conditions relating to the main residence, income, ownership and supporting documentation.

FN

Large family

1%

It requires a main residence and that the combined taxable bases for the IRPF of the members do not exceed 46.455 €, increased by 18.200 € for each child exceeding the statutory minimum required to be considered a large family.

DIS

Disability

1%

Article 33 provides for the rate applicable to certain purchasers with a disability of 65% or more, subject to income limits and other conditions.

MON

Single-parent family

1%

It may apply where the legal definition is met single-parent family status, income limits and the remaining main residence requirements.

VPO

Subsidised housing

0%

The transfer of publicly or privately promoted protected housing may be taxed at 0% when it is to constituir the primary residence and the legal conditions are met.

Additional 20% rebate on the tax liability at the 5% rate

For certain first main residence purchases, article 35 allows a 20% rebate on the resulting tax liability at the 5% rate. Eligible cases include certain buyers aged 40 or under who are subject to the statutory income limit and certain women who are victims of gender-based violence. This rebate has additional requirements and should not be confused with a separate 4% rate.

New builds and first transfers

IGIC on housing: 7%, 5%, 3% or 0%, depending on the circumstances

Legislative Decree 1/2025 expressly regulates the applicable rates for housing-related transactions. The Budget Act for Canarias for 2026 expanded several limits and conditions from 1 January 2026.

GEN

General rate

7%

Housing transactions not covered by the special rates under article 38 are taxed at the general rate.

HAB

Main residence

5%

For certain transfers intended as a main residence, subject to taxable base limits and requirements regarding ownership of another home.

RED

Super-reduced rate

3%

For a main residence where, in addition, one of the protected personal or economic circumstances applies under the regulations.

VPO

Zero rate

0%

Among other cases, certain subsidised housing units delivered by their developers.

Super-reduced rate

When IGIC at 3% may apply to a home

The property must be the habitual residence, and the following must be met jointly the requirements of Article 38. Since 2026, there have been increases to the age, income and tax base limits.

01

Main residence

The acquired property must be used as a habitual residence under the applicable legal definition.

02

Protected circumstance

At least one of the following circumstances must apply: age 40 or under, large family, disability equal to or greater than 65%, certain situations of gender-based violence single-parent family or the established income criterion.

03

Tax base limit

As a general rule, the tax base for the home, garages and ancillary units transferred together must be ≤ 200.000 €.

Situation Delivery tax base limit Other requirements
General 3% rule ≤ 200.000 € Habitual residence + protected circumstance + ownership + formalities.
Large family · general category ≤ 300.000 € In addition to the other requirements of Article 38.
Large family · special category ≤ 400.000 € In addition to the other requirements of Article 38.
Updated income criterion for 2026

Among the circumstances allowing access to the 3% rate is that the family unit's income for the previous calendar year is no more than 46.455 €, increased by 15.315 € where taxation is joint, according to the legal definition of income used by the regulation.

Documentation must be prepared before applying 3%

The regulations require a declaration from the purchaser to the business owner or transferring professional certifying compliance with certain conditions. In the case of advance payments, specific rules apply from the first advance payment.

Reduced rate

IGIC at 5% also has a limit of 200.000 € under the general rule

Where the property does not fall within the zero-rate or 3% cases, 5% may apply if it is to constituir the primary residence and the following are met the conditions set out in article 38.

HAB

Destination

The property must constituir the purchaser's primary residence.

200

Taxable amount

General rule: up to 200.000 €, including garages and ancillary units located in the same building and transferred together.

OWN

Another property

There are rules regarding ownership, bare ownership or usufruct of another property and its subsequent transfer.

Large families

For the IGIC taxable-base limit at 5%, the regulations 2026 raise the maximum to 300.000 € for large families in the general category and to 400.000 € for the special category, provided that the other requirements are met.

Public deed

AJD in Canarias: 0,75% standard rate, 1% for transactions subject to IGIC and 0,40% in certain cases

AJD should not automatically be added to every property purchase. The variable charge depends on the deed meeting the legal requirements and the transaction not being subject to another incompatible tax category.

AJD

General rate

0,75%

Regional standard rate for notarial documents covered by article 31.2 of the national regulations.

IGIC

Transaction subject to IGIC

1%

Documents relating to transactions subject to IGIC or VAT are subject to a rate of 1%, provided that the document is subject to the graduated AJD charge.

RED

Protected primary residence

0,40%

This may apply to first copies of certain deeds for the acquisition of a primary residence where the requirements for the expressly listed reliefs in Article 37 are met.

A resale subject to TPO does not automatically mean “ITP + variable AJD”

The graduated AJD charge requires, among other conditions, that the transaction is not subject to Transfer Tax for Consideration, Corporate Transactions or Inheritance and Gift Tax. Therefore, an ordinary usada sale subject to TPO follows a different tax route from a first delivery subject to IGIC.

Taxable amount

For ITP, do not assume that the tax is always calculated on the agreed price

The Catastro reference value may determine the taxable base for ITP and AJD in real-estate transactions. If the declared value, the price or the consideration exceed the reference value, the higher of the amounts is used in accordance with the legal rules.

REF

Reference value

It may serve as the minimum taxable base for ITP/AJD where it exists and applies.

€

Higher price

If the price, declared value or consideration is higher, the taxable base is not reduced to the reference value.

≠

Not the cadastral value

Reference value and cadastral value are different concepts and serve different tax purposes.

Consult the official Catastro FAQs on the reference value directly .

Examples

How tax changes depending on the type of property and the buyer

The following examples are for mathematical illustration only and assume that the stated figure matches the applicable taxable base. Before applying a reduced rate, all eligibility requirements must be checked.

Resale · 250.000 € Buyer without a specific tax benefit

General TPO rate: 6,5%. If the applicable taxable base were 250.000 €:

ITP: 16.250 €
Standard resale · 180.000 € All requirements for the 5% rate are met

180.000 € × 5%.

ITP: 9.000 €
New build · 250.000 € No reduced residential property rate applies

If the transaction is subject to the general IGIC rate of 7%:

IGIC: 17.500 €

The deed may also be subject to AJD. If the AJD taxable base were 250.000 € and the 1% rate applied, the amount payable would be 2.500 €.

New-build main residence · 180.000 € All requirements for the 3% IGIC rate are met

180.000 € × 3%.

IGIC: 5.400 €

AJD must be calculated separately according to the characteristics of the deed and any benefits that may apply.

The threshold refers to the taxable base, not simply the advertised price

Before concluding that a property falls within a 200.000 € limit, 300.000 € or 400.000 €, it must be correctly determined which taxable base is used by the relevant rules.

Foreign and non-resident buyers

Nationality does not replace the conditions for a primary residence

A foreign buyer does not automatically receive a different rate because of their nationality. What matters is the type of transfer, the location of the property and whether it actually meets the requirements for each tax benefit.

NR

Non-resident investor

You should not budget for reduced rates linked to a primary residence if your circumstances do not genuinely meet that condition.

RES

Relocation of residence

If the property is going to become your primary residence, all time-related, financial and ownership requirements imposed by the specific regulations must be verified.

DOC

Supporting evidence

A tax benefit should not be applied simply because the buyer states that they will use the property as their residence: its documentary and legal requirements must also be met.

See also buying a property in España as a foreign or non-resident buyer .

Self-assessment

ITP and AJD are processed using Form 600 where applicable

The Electronic Office of the Government of Canarias identifies Form 600 as the self-assessment procedure for the Tax on Property Transfers and Documented Legal Acts.

600

Model

Form 600 of the Canary Islands Tax Agency for ITP/AJD.

1M

Timeframe

The official portal states a deadline of one month from the date on which the taxable act or contract arises.

ATC

Authority

Regional administration is the responsibility of the Canary Islands Tax Agency.

Official access: filing of Form 600 .

Common mistakes

Six mistakes that can alter the tax estimate in Canarias

01

Applying 10% VAT

Canarias uses IGIC. The territorial VAT applicable in mainland Spain/the Balearic Islands must not be applied to a transaction in the Canary Islands.

02

Always using 6,5%

It is the general rate for real-estate ITP, but there are specific rates and tax relief measures with their own requirements.

03

Confusing 5% ITP with 5% IGIC

They are different taxes, applicable to different tax routes. and with different legal conditions.

04

Ignoring the reference value

It may affect the taxable base of a taxable transfer for ITP/AJD purposes.

05

Adding AJD to every resale

The variable-rate AJD charge is subject to eligibility requirements and is not automatically added to a transaction already subject to TPO.

06

Applying a reduction without documentation

Reduced rates may require formal proof, income limits, primary residence requirements and conditions regarding previous property ownership.

Official sources

Regulations and authorities consulted

Last verified: 8 August 2026. Status: in force as of the review date.

BOE · Canarias Legislative Decree 1/2009 Consolidated text on devolved taxes of Canarias. Arts. 31–38: ITP, reduced rates, rebates and AJD. BOE · Canarias Legislative Decree 1/2025 Consolidated text of the IGIC. Art. 38: rates applicable to housing-related transactions. BOE · Canarias Budget 2026 Law 9/2025, of 23 December Updates for 2026 the requirements, age thresholds, income limits and taxable bases for certain IGIC and ITP benefits. Official State Gazette (BOE) · State Royal Legislative Decree 1/1993 National framework for the Property Transfer Tax and Documented Legal Acts. Canary Islands Tax Agency Form 600 Official procedure and filing deadline for ITP and AJD. Directorate-General for the Cadastre Reference value Official source on its role as the taxable base for ITP and AJD and how it differs from the cadastral value.

Related guides

Continue from the regional tax to the complete transaction

Taxes when buying a property in España National guide to identifying the correct tax route before moving on to regional rules. Total costs when buying a property Add notary, Land Registry, financing and professional service costs to the tax budget. ITP on resale properties How the tax works nationwide and why the final rate depends on the jurisdiction. New build or resale property Compare taxes, contracts, guarantees and the purchase process. How to buy a property in España step by step From budgeting and due diligence to the deed and registration. Buying as a foreigner or non-resident NIE, funds, representation and practical considerations for international buyers.

Professionals in Canarias

Calculate taxes for the specific property, not from a generic España table

An accurate calculation must identify the island and location, whether the property is new or usada, the taxable base, its intended use as a main residence and the circumstances of the buyer before applying any tax benefit.

Frequently asked questions

Taxes when buying a property in Canarias

The general Canary Islands rate for the transfer of real property is currently 6,5%. Certain purchases of a main residence may qualify for lower rates if they meet all the legal requirements.

Among other requirements, the property must constituir the taxpayer's main residence, and the taxable base of the property together with garages and annexes transferred jointly must be equal to or below 200.000 €, and the legal rules must be met regarding ownership of another property.

Yes. The legislation provides for a 1% rate for certain purchases of a primary residence by large families, people with a disability of 65% or more, and single-parent families, subject in each case to their specific requirements.

Mainland Spanish VAT should not be applied automatically. Canarias has its own indirect tax, IGIC. The transfer of a property may be taxed at 7%, 5%, 3% or 0% depending on the circumstances and whether the requirements are met.

The standard IGIC rate is currently 7%. Article 38 establishes specific rates for certain property transactions, so before applying 7%, you should check whether 5%, 3% or 0% applies.

The property must be a primary residence and the requirements of Article 38 must be met. The circumstances covered include being 40 years old or younger, belonging to a large family, a disability of 65% or more, certain circumstances of gender-based violence, being a single-parent family or meeting the income criterion established by the legislation.

From 2026, the general taxable-base limit for the cases covered by 3% and 5% is 200.000 €. For a general-category large family, it may reach 300.000 €, and for the special category, 400.000 €, provided that the other legal requirements are met.

The general rate for notarial documents is 0,75%, but where the documents relate to transactions subject to IGIC or IVA, Canary Islands legislation sets a rate of 1%. Certain purchases of a main residence may qualify for 0,40% if they meet the specific requirements of article 37.

The progressive AJD charge is not automatically added to a standard transfer already subject to TPO. AJD has its own requirements and requires, among other conditions, that the transaction not be subject to certain other tax categories.

Not necessarily. For properties, the reference value from the Catastro may determine the taxable base. If the price, declared value or consideration is higher than the reference value, the higher amount is used in accordance with the regulations.

The Electronic Office of the Government of Canarias establishes a one-month deadline for self-assessments of transactions or contracts subject to ITP/AJD, calculated from the time the transaction or contract arises.

Nationality alone does not establish a different general ITP or IGIC rate. However, many tax benefits are linked to the property actually becoming the buyer's main residence and to other personal, financial and asset-related conditions.

Notice: This guide provides general information on acquisition taxes for homes located in Canarias and does not replace tax advice, legal, financial or notarial advice. Reduced rates, reliefs and exemptions depend on meeting specific requirements regarding primary residence, tax base, income, age, family, disability, prior ownership and documentation. Before signing or making payments, check the current regulations and the specific transaction with the Canary Islands Tax Agency or a qualified professional.

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