Buying a home in one of Andalucía’s smaller villages can offer more than beautiful scenery and a welcoming community. If you plan to make it your main residence, you may also qualify for a substantial saving on purchase tax.
For qualifying resale purchases, the transfer tax (ITP) rate falls from 7% to 3.5%.
Who qualifies?
To benefit from this rural tax reduction:
The property must be in a municipality on the Junta de Andalucía’s official list of municipalities with depopulation problems, based on a population of fewer than 3,000.
The property’s value must not exceed €150,000.
It must become the buyer’s main residence (vivienda habitual), rather than a holiday home or rental investment.
There is no age restriction for this particular rural tax benefit. Gaucín and Montejaque both appear on the qualifying list for 2026.
How much could you save?
For a qualifying property with a taxable value of €150,000:
| Transfer tax | Amount |
|---|---|
| Standard rate of 7% | €10,500 |
| Reduced rate of 3.5% | €5,250 |
| Potential saving | €5,250 |
Check before you buy
Main-residence rules normally require you to live in the property for at least three years, although recognised exceptions apply. Your lawyer should confirm eligibility, the property’s tax value and the qualifying municipal list before completion.
At Andalucía Country Houses & Architects, we can help you explore village homes that suit your lifestyle and budget.
Contact: sales@andalucia-country-houses.com
Telephone: +34 951 458 910 | +34 711 042 458
Information relates to the rules and municipal list applicable in 2026. Individual eligibility should be confirmed by your legal or tax adviser.
