House Flipping in Andalusia: What Has Changed in 2026
House flipping — buying a property, renovating it, and reselling it — has long been a common investment strategy on the Costa del Sol. As of 1 January 2026, Andalusia has introduced tighter rules that directly affect how these projects are taxed and structured.
The headline is simple: the tax advantage still exists, but the margins for error are smaller.
The Reduced 2% ITP: Still Available, With Limits
Professional buyers purchasing properties specifically for resale can still benefit from the reduced 2% ITP (Property Transfer Tax). However, this now only applies if both of the following conditions are met:
The purchase value of the property, including annexes such as parking or storage, is €500,000 or less
The property is resold within 24 months of the purchase date
If either condition is missed, the reduced rate no longer applies and the standard ITP rate is due instead.
“The window to resell with the reduced 2% ITP has been cut from five years to just 24 months.”
Shorter Timeframe, More Pressure
Under the previous regime, investors had up to five years to resell a property while keeping the reduced tax benefit. This window has now been cut to two years, which places much more emphasis on planning, execution and timing.
Projects that drag on — whether due to licensing delays, construction overruns or poor resale positioning — carry significantly more financial risk than before.
Higher-Value Properties Lose the Advantage
Another key change is the €500,000 value cap. Properties above this threshold no longer qualify for the reduced 2% ITP at purchase, regardless of how quickly they are resold.
For higher-end projects, this increases upfront acquisition costs and shifts the focus even more toward accurate pricing, renovation budgets and exit strategy.
What This Means for Investors
These changes don’t eliminate house flipping — but they clearly favour fast, well-structured projects over speculative or long-term holds. Smaller and mid-range properties remain attractive, provided timelines are realistic and clearly defined from day one.
Professional advice, solid numbers and local market knowledge are now more important than ever.
Thinking about buying, renovating or reselling property on the Costa del Sol?
If you want to understand how these rules apply to your specific situation — or need help sourcing, analysing or selling a project — get in touch with us. We’re happy to guide you through it.
