A heated debate has erupted in Spain that could transform the country’s approach to property taxation. The Supreme Court has put an end to a long-standing practice where tax authorities set different taxable bases for co-owners of the same apartment. Such manipulations have now been officially deemed unacceptable, sparking intense discussions among lawyers and homebuyers.
The crux of the issue was that when a property was purchased jointly—for example, by two people with equal shares—the tax office could calculate a separate transfer tax (ITP) amount for each buyer. This happened even if the transaction was covered by a single contract and concerned just one property. As a result, one buyer could end up in a less favorable position than the other, despite both acquiring the same apartment on identical terms.
Legal precedent
In December 2025, Spain’s Supreme Court (Tribunal Supremo) issued a ruling that now sets a benchmark for all similar cases. The judges emphasized that for a single transaction involving one property, the tax base must be the same for all buyers. Dividing the tax burden on differing grounds was deemed a violation of principles of fairness and economic logic.
The story began back in 2015, when two individuals purchased a property in Andalucía, each owning 50%. They took advantage of a reduced 3.5% ITP rate that was available at the time for young buyers and for properties below a certain price. However, the tax authorities conducted a review only for one of the buyers, increasing their tax base, while leaving the other unchanged. As a result, one co-owner ended up paying more than the other, even though both were part of the same transaction.
Arguments of the Parties
The affected parties disagreed with this approach and took the case to court, arguing that such practices violate their rights. The lower court sided with them, stating that it is not permissible to establish different tax bases for the same property. However, the tax authority decided to appeal this ruling and brought the case to the Supreme Court.
While reviewing the case, the Supreme Court referred to provisions in the Tax Code that require a consistent approach to taxation in such situations. The judges noted that if the tax authorities conduct a review for one co-owner, they are required to take into account the interests of all parties involved in the deal. Otherwise, it would create an absurd scenario: one half of the apartment is valued at one amount, and the other half at another, even though it’s the same property and the same transaction.
Implications for the Market
The court’s decision has already sparked a wave of discussion among real estate market experts. Now, buyers who purchase property in shares can be confident: the tax authorities cannot assign them different tax bases. This increases the transparency of transactions and protects the interests of citizens, especially young families and investors who often buy apartments together.
Legal experts note that this new precedent strengthens trust in the judicial system and reduces risks for buyers. Previously, such situations could lead to lengthy disputes and additional expenses. Now, the rules of the game are clearer and more predictable.
Position of the administration
Tax authorities tried to justify their actions by stating that the audit was conducted only on one of the buyers, while the second was not a subject of scrutiny. However, the court rejected these arguments, stating that such an approach contradicts the principles of equality and fairness. Moreover, the judges emphasized: if the tax office makes a mistake, it is obliged to correct it in the interest of all parties to the transaction, not just those under investigation.
As a result, the tax authorities are now required to take into account the interests of all co-owners when determining the tax base for ITP. This decision could become a starting point for revisiting other contentious practices in property taxation.
Legal nuances
The court paid special attention to the fact that the property transfer tax (ITP) is a regional tax, and its rates and rules may vary across different autonomous communities. However, the principle of uniform property valuation is now mandatory for all regions. This means that even if a transaction takes place in different parts of the country, the tax authorities cannot apply different valuation methods to the same property.
Experts believe that this decision will increase legal certainty and reduce the number of court disputes. Buyers will be able to calculate their expenses in advance and not worry about unexpected surprises from the tax authorities.
