04/08/2025
TAX CUTS with immediate effect with save our buyers thousands of euros
Major Tax Reductions Announced in the Region of Murcia – Effective July 25, 2025
On July 25, 2025, the Regional Government of Murcia implemented important tax reforms under Law 3/2025 of 23 July, aimed at boosting real estate investment, supporting younger buyers, and protecting high-net-worth residents from overlapping national and regional taxes. These changes, now published in the region’s Official Gazette, affect the Property Transfer Tax (ITP), Stamp Duty (AJD), and Wealth Tax (IP).
Property Transfer Tax (ITP) Cut – Now 7.75%
The general ITP rate—applicable to resale (second-hand) property purchases—has been reduced from 8% to 7.75%.
This small but meaningful cut lowers the overall cost of buying existing homes in the region and will especially benefit foreign buyers, who often target resale properties.
For a €200,000 resale property, the tax saving is €500 compared to the previous rate.
Stamp Duty (AJD) Reduced – Now 1.5% for New Builds with VAT
The Stamp Duty (Impuesto sobre Actos Jurídicos Documentados) rate for first copies of public deeds relating to property transactions subject to VAT (typically new builds that are not exempt) has also been reduced:
From 2% to 1.5%, effective immediately.
This applies to notarial acts, such as signing deeds for a mortgage or property purchase, and reduces overall acquisition costs in the new-build property market.
More Accessible ITP Relief for Young Buyers and Entrepreneurs
The regional government has also fine-tuned eligibility rules for the reduced ITP rate of 5%, aimed at supporting:
Young entrepreneurs
Professionals under 41
Companies entirely owned by young individuals
Key change:
The definition of a “young person” has been expanded from “under 40” to “40 or under”, widening access to the reduced rate.
The property must still be used as their primary fiscal residence or place of professional activity.
This change aligns with Murcia's efforts to make home ownership more attainable for working professionals and small business owners.
Regional Wealth Tax Rebate for High-Net-Worth Individuals
To respond to the ongoing national Solidarity Tax on Major Fortunes (which applies to individuals with wealth exceeding €3 million), Murcia is now offering a regional Wealth Tax rebate to avoid double taxation.
Starting July 2025:
Taxpayers who are subject to both the state’s Solidarity Tax and Murcia’s regional Wealth Tax will receive a rebate to offset regional obligations.
This is intended to retain wealthy residents, discourage relocation to lower-tax regions, and maintain Murcia’s appeal to international investors and retirees with significant assets.
What’s Next? New Personal Income Tax Deductions in 2025
As part of Murcia’s broader economic plan, the region has also announced additional personal income tax (IRPF) deductions to take effect for the 2025 tax year. These will be detailed in upcoming legislation and are designed to:
Support families
Encourage employment
Promote fiscal residency in the region
Summary: Why This Matters
Murcia’s new tax regime makes the region:
More cost-effective for property buyers
More attractive to entrepreneurs and young professionals
More competitive for high-net-worth individuals
Whether you’re planning to purchase property, set up a business, or move your tax residency to Spain, these updates position Murcia as one of the most financially favourable regions in the country.
