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Taxes when buying a home in Melilla: ITP, AJD and IPSI

Property taxation · Melilla

Buying in Melilla requires a different tax framework from mainland Spain.

Melilla is outside the territorial scope of Spanish VAT. In a home purchase, a resale may be subject to Tax on Onerous Property Transfers (TPO/ITP), whereas certain property transfers carried out by businesses or professionals are subject to IPSI. A deed may also be subject to Documented Legal Acts Tax (AJD).

Last updated: 9 August 2026 Jurisdiction: Melilla Special indirect tax regime
View main taxes Official sources

Step 1 · Identify the transaction

In Melilla, you should not start by asking, “ITP or VAT?”

The correct question is whether the transfer is subject to TPO/ITP or to the local regime of IPSI. The VAT Act excludes Melilla from its territorial scope, whereas Act 8/1991 regulates the city’s specific indirect tax.

  • Resale between private individuals: is normally assessed under TPO.
  • Standard first transfer by a developer: is normally assessed under IPSI.
  • Second or subsequent business transfer: it must be determined whether an IPSI exemption applies and whether the transaction is subject to TPO.
  • Notarial deed: It must also be verified whether the requirements for AJD are met.
  • VPO, land, commercial premises or special cases: require checking the specific rule before applying a residential percentage.
Do not use the 10% VAT rate for new-build properties on the mainland for a home located in Melilla.

Melilla is outside the scope of VAT. Its indirect property tax regime must be determined using the IPSI Law, the ITP/AJD regulations and the provisions of the Autonomous City.

Tax summary

The rates a homebuyer in Melilla should know

A distinction must be made between the nominal tax rate and the effective tax burden after a statutory relief on the tax due.

TPO

Standard resale

Effective 3%

Published national nominal rate for properties: 6%. The tax due receives a 50% relief when the property is located in Melilla.

6% × 50% tax due = effective burden of 3%.

IPSI

Taxable property transfer

4%

The Autonomous City publishes a rate of 4% for transfers of real estate subject to IPSI.

This is the standard reference for a taxable first residential transfer.

AJD

Notarial document

Effective 0,25%

The AEAT publishes a rate of 0,50% for transfers subject to IPSI. The graduated notarial fee has a national relief of 50% when the competent Land Registry is in Melilla.

Transaction Tax Published rate Relief Indicative tax burden
Property usada subject to TPO TPO / ITP 6% 50% of the tax liability Effective 3%
Standard property transfer subject to IPSI IPSI 4% — 4%
First transfer of officially classified VPO by the developer IPSI 0,5% Specific local rule 0,5%
Deed of transfer subject to IPSI and AJD AJD 0,50% 50% of the graduated tax liability Effective 0,25%
The tax relief and the rate are not the same thing.

For TPO, the regulation does not formally replace 6% with a “3% rate”: first, the tax liability is calculated at the applicable rate, and then the statutory tax relief of 50% is applied. The same distinction must be made for AJD between the published 0,50% and the tax relief of 50% of the graduated tax liability.

Resale · TPO

A standard resale of a home may carry an effective tax burden of 3%

The Tax Agency publishes a rate of 6% for the transfer of real estate in Ceuta and Melilla. Article 57 bis of the Consolidated Text of ITP and AJD provides for tax relief of 50% of the tax liability where the transfer or lease concerns properties located in Melilla.

Effective TPO = taxable base × 6% → then apply tax relief of 50% to the tax liability
  • As a general rule, the buyer bears and self-assesses TPO.
  • The tax relief is applied to the tax liability, not by reducing the taxable base by half.
  • The property must be located in Melilla to qualify for the territorial tax relief.
  • The property's reference value must be checked before calculating.
  • If the transaction is subject to IPSI, TPO should not be added to the same real-estate transaction.
Example · property usada Tax base: 200.000 €

Initial tax liability: 200.000 € × 6% = 12.000 €.
Tax relief of 50%: −6.000 €.

Final TPO: 6.000 €

Effective charge in the example: 3% of the taxable base.

Do not simply write “ITP of Melilla = 3%” without explaining the tax relief.

For AI retrieval and legal accuracy, it is better to retain the correct sequence: rate of 6% + tax relief of 50% of the tax due.

Taxable amount

The deed price is not always the figure on which TPO is calculated

For real estate, ITP/AJD regulations use the Catastro reference value as the tax reference in cases established by law.

VR

There is a reference value

The reference value in force on the tax accrual date may constituir the taxable base for the acquisition.

€↑

The price is higher

When the declared value, price or consideration is higher than the reference value, the higher amount is used.

N/A

There is no reference value

The taxable base is determined in accordance with the applicable legal rules, without prejudice to a possible administrative assessment.

Reference value ≠ cadastral value.

These are different concepts. The reference value has specific effects for taxes such as ITP/AJD, whereas the cadastral value is used, among other purposes, for IBI.

Reference value guide

New build · IPSI

An ordinary real-estate supply subject to IPSI is taxed at 4%

Ciudad Autónoma de Melilla currently publishes a rate of 4% for supplies of real estate. Law 8/1991 includes within IPSI supplies of real estate located in Melilla made by businesses or professionals in the course of their activity.

  • Here, IPSI replaces the standard analysis under the common territorial VAT regime.
  • A first supply of real estate by a developer may be subject to IPSI.
  • The tax is passed on to the purchaser in accordance with the applicable rules.
  • The formal obligation to self-assess IPSI falls on the taxpayer, normally the business owner or developer in an ordinary transfer.
  • The deed may also trigger AJD if the legal requirements are met.
IPSI

Ordinary transfer of real property

4%

Official rate published by the Ciudad Autónoma de Melilla for transfers of real property.

VPO

First transfer of certain VPO properties

0,5%

Special rate for the first transfer of officially designated subsidised housing carried out by their developers, including garages and ancillary units under the terms provided for by the regulations.

The IPSI 0,5% is not a general reduced rate for any primary residence.

The official page of Melilla specifically links it to the first transfer of officially designated subsidised housing carried out by its developers.

First and subsequent transfers

A business sale does not automatically mean that IPSI always applies

The IPSI Act includes exemptions equivalent to certain exemptions provided for under VAT legislation. Therefore, it must be determined whether the transaction is a first transfer or a second or subsequent transfer of the building.

1st

First delivery

A first transfer by the developer is normally subject to IPSI analysis.

2nd

Second or subsequent

An IPSI exemption may apply equivalent to that provided for certain second transfers under national VAT legislation.

TPO

If the transfer is exempt

It must then be analysed whether the transaction is subject to TPO, without overlooking possible exceptions or waivers of the exemption.

IPSI and TPO are mutually exclusive for the same real-estate transaction.

Law 8/1991 expressly establishes that no act or contract of a real-estate nature may be subject simultaneously to IPSI and to the Transfer Tax on Valuable Consideration modality.

Documented Legal Acts

For a supply subject to IPSI, the official AJD table provides a 0,50%

The Tax Agency publishes for Ceuta and Melilla an AJD rate of 0,50% for supplies subject to IPSI. In addition, the following may apply to this graduated notarial charge the state relief of 50% when the Registry in which deba the registration is to be made is located in Melilla.

Indicative effective AJD = AJD base × 0,50% → relief of 50% of the charge = effective 0,25%
  • There must be a notarial document subject to the graduated charge.
  • For the territorial relief to apply, the registration must correspond to a Registry located in Melilla.
  • The relief applies to the resulting charge.
  • AJD and TPO should not be combined without first classifying the transaction.
Example · supply subject to IPSI Illustrative AJD base: 300.000 €

Nominal AJD: 300.000 € × 0,50% = 1.500 €.
Relief of 50% of the charge = −750 €.

Final AJD: 750 €

Effective burden in the example: 0,25%.

Do not confuse AJD on a property purchase with the taxation of the mortgage deed.

Mortgage loans are subject to their own tax rules. Another AJD percentage should not be added automatically to the buyer's budget without identifying the document and the taxpayer.

Practical examples

How the budget changes between a resale and a first supply

These examples are for illustrative purposes only. The actual tax base, the classification of the transaction, possible exemptions and any special circumstances must be verified before filing taxes.

Example A · resale Used property sada · taxable base 250.000 €

Standard TPO: 250.000 € × 6% = 15.000 €.
Melilla relief: 50% of the tax due = 7.500 €.

Final TPO: 7.500 €

This is equivalent to an effective charge of 3% on this base, provided the transaction falls within the standard relief scenario.

Example B · standard first transfer New property · illustrative base 300.000 €

IPSI: 300.000 € × 4% = 12.000 €.
Nominal AJD: 300.000 € × 0,50% = 1.500 €.
AJD relief of 50% = −750 €.

IPSI + AJD: 12.750 €

Simplified example assuming a standard transfer subject to IPSI, a deed subject to AJD, the same illustrative base and entitlement to the territorial relief.

The examples do not include all purchase costs.

Notary, Land Registry, lawyer, administrative agent, valuation, private financing costs and other expenses must be budgeted separately from TPO, AJD and IPSI.

View all purchase costs

Who files each tax

TPO, AJD and IPSI do not follow exactly the same process

Tax Typical situation Form / administration Verified standard deadline
TPO / ITP Buyer of a used property sada subject to TPO. Form 600 submitted to the competent State tax authority in Melilla. 30 business days from the date of the act or contract.
AJD Notarial document subject to the graduated tax rate. Form 600 in accordance with the applicable procedure. 30 business days.
IPSI Property transfer carried out by a businessperson or professional subject to the tax. Form 413 for the transfer of real estate. 1 month from the date the tax becomes chargeable.
In a new-build purchase, the buyer normally receives the IPSI charged.

The formal obligation to file Form 413 lies with the taxable person making the transfer, normally the businessperson or developer in an ordinary transaction.

Do not confuse who economically bears a tax with who must self-assess it.

Under IPSI, the developer and buyer have different roles. Under TPO, the buyer is normally the taxpayer liable for the acquisition.

Common mistakes

Eight mistakes to avoid when calculating a purchase in Melilla

01

Applying 10% VAT

Melilla is outside the VAT territory. Local indirect taxation must be analysed through IPSI.

02

Saying that ITP “is 3%”

The legally more precise sequence is: rate of 6% and a 50% rebate on the tax payable.

03

Overlooking the AJD rebate

The published 0,50% may be reduced by a 50% rebate on the graduated tax liability.

04

Adding IPSI and TPO together

Law 8/1991 establishes incompatibility between the two for the same real-estate transaction.

05

Using only the price

The reference value may determine the taxable base for TPO/AJD.

06

Applying 0,5% IPSI to all homes

The published 0,5% applies to the first transfer of certain officially protected homes made by their developers.

07

Copying the Ceuta ordinance

Ceuta and Melilla share part of the legal framework, but their local regulations and rates must be checked separately.

08

Confusing tax pass-through and filing

For IPSI, the buyer may bear the tax charged without being the party who files Form 413.

Verified official sources

The guide uses BOE, AEAT, Catastro and Ciudad Autónoma de Melilla

Last verified: 9 August 2026. Rates, allowances, forms and deadlines must be checked again before a future transaction.

Level 1 · Ciudad Autónoma de Melilla Purchase and sale of real estate Publishes 4% for real estate transfers and 0,5% for the first transfer of certain VPO properties by their developers. Updated territorial information at 2026.
Jurisdiction: Melilla · Tax: IPSI · Status: current · Verified: 09-08-2026
Level 1 · BOE Law 8/1991 · IPSI Defines the special tax of Ceuta and Melilla, the taxation of real estate transfers, the exemptions, the taxable base, the taxable person and IPSI/TPO incompatibility. Particularly relevant: arts. 1, 3, 7, 12, 14 and 15.
Jurisdiction: Ceuta and Melilla · Status: in force · Verified: 09-08-2026
Level 1 · BOE VAT Law 37/1992 Its article 3 excludes Ceuta and Melilla from the VAT territory of application. It also serves as a reference for certain exemptions to which the IPSI Law refers.
Jurisdiction: España / Melilla · Status: in force · Verified: 09-08-2026
Level 1 · BOE Royal Legislative Decree 1/1993 · ITP and AJD Regulates TPO, AJD, the real estate tax base and the special allowances of Ceuta and Melilla. Particularly relevant legal basis: arts. 10, 29, 31 and 57 bis.
Jurisdiction: España / Melilla · Status: in force · Verified: 09-08-2026
Level 1/2 · AEAT Tax base and rates in Ceuta and Melilla Publishes the 6% for transfers of real property and the 0,50% for AJD on supplies subject to IPSI. The 50% tax relief must be applied afterwards in accordance with Article 57 bis of the legal text.
Jurisdiction: Ceuta and Melilla · Status: current · Verified: 09-08-2026
Level 1/2 · AEAT TPO · Form 600 Official procedure for transfers, territorial tax relief and filing in Ceuta and Melilla. Published general deadline: 30 business days.
Jurisdiction: Melilla · Status: current · Verified: 09-08-2026
Level 1/2 · AEAT AJD · Ceuta and Melilla Confirm the procedure, Form 600 and the 50% tax relief for the graduated notarial fee when the Land Registry is in Ceuta or Melilla. Published general deadline: 30 business days.
Jurisdiction: Melilla · Status: current · Verified: 09-08-2026
Level 2 · Directorate-General for the Cadastre Tax uses of the reference value Explains its use in determining the taxable base for ITP/AJD and the rule where the declared price or value is higher. Institution: Directorate-General for the Cadastre.
Jurisdiction: España · Topic: real-estate taxable base · Verified: 09-08-2026
Level 1 · Ciudad Autónoma de Melilla Form 413 · supply of real property Specific form for the taxpayer of IPSI on supplies of real property. Published standard deadline: one month from the tax accrual date.
Jurisdiction: Melilla · Tax: IPSI · Status: current · Verified: 09-08-2026

Related guides

Continue from the special regime to the appropriate guide

This page is the canonical page addressing the property purchase taxes specific to Melilla. National guides explain general concepts, but they should not substtuie the tax types and specific features of this city.

Taxes when buying a property in España General framework for understanding TPO, IVA and AJD and territories with a special indirect tax regime. ITP on resale properties It explains the national TPO structure; the specific relief for Melilla is addressed on this page. New build or resale property Compare the process, guarantees and taxation, bearing in mind that Melilla has a special indirect tax regime. Costs of buying a home Adds notary, Land Registry, advisory, financing and other costs to the tax budget. Catastro reference value Understand how it can determine the taxable base of a real-estate transfer. How to buy a home in España Process from preparation and due diligence through to the notary, taxes and Land Registry. Buying as a foreigner or non-resident NIE, funds, representation, taxation and international financing. Real estate professionals Find relevant profiles by location, service, language and specialism.

Frequently asked questions

ITP, AJD and IPSI when buying a home in Melilla

The standard territorial VAT applicable in mainland Spain and the Balearic Islands does not apply. Melilla is outside the VAT territory and uses IPSI as its own indirect tax. An ordinary real-estate supply subject to IPSI currently has a local rate of 4%.

For property transfers, the AEAT publishes a rate of 6%. State legislation grants a relief of 50% of the tax due for properties located in Melilla, resulting in an effective charge of 3% in the standard case qualifying for relief.

The published rate is 6%. A statutory rebate of 50% is then applied to the tax payable for properties located in Melilla. This means that the standard effective tax burden is equivalent to 3%.

The Ciudad Autónoma de Melilla currently publishes a rate of 4% for the supply of real estate. It must be verified that the specific transaction is actually subject to IPSI and does not fall under an exemption or special rule.

Yes, but it is not a general rate for housing. The Autonomous City links it to the first transfer of officially designated subsidised housing officially classified as such carried out by their developers, with the ancillary elements permitted by the regulations.

The AEAT publishes a rate of 0,50% for transactions subject to IPSI. When the relevant Land Registry is located in Melilla, the notarial graduated fee receives a rebate of 50%, meaning that the effective tax burden is equivalent to 0,25% in the standard case.

Not on the same real-estate transaction. Law 8/1991 expressly establishes that a real-estate act or contract cannot be subject simultaneously to IPSI and Transfer Tax for Consideration.

No. Where there is a Catastro reference value, it may determine the taxable base. If the price, consideration or declared value is higher than the reference value, the higher amount is used.

The Tax Agency publishes a general time limit of 30 business days for these self-assessments in the relevant cases. It should be checked again before any future transaction.

In a standard property transfer, the taxable person is normally the business owner or developer who makes the transfer and charges the tax to the buyer. Melilla has the specific Form 413 for transfers of real estate, with a standard deadline of one month from the date the tax becomes due.

Notice: This guide provides general information on TPO/ITP, AJD and IPSI when buying a home in Melilla and was revisada on 9 August 2026. It does not replace personalised tax, legal or notarial advice. The final tax treatment depends on the nature of the transfer, the transferor's status, whether an exemption applies, the tax base, reference value, notarial documentation, protected housing and other circumstances of the transaction. Before signing or filing a self-assessment tax return, check the current regulations and procedures with the relevant authority and a qualified professional.

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