Property swaps in Spain in 2026: permuta inmobiliaria, the tax treatment and how to exchange properties legally

A permuta inmobiliaria is a property swap: two owners agree to exchange their homes or investment properties directly, without a conventional cash sale. Spanish law recognises it under Codigo Civil Articles 1538 to 1541, and the mechanism is fully legal, notarised and registrable. The catch is fiscal. Each party is simultaneously a buyer and a seller, so each owes transfer tax on the property received, capital gains tax on the gain against their original cost, and plusvalia municipal on the land value increase. This guide sets out the contract, the full tax cascade, the worked numbers, the critical distinction from a dacion en pago, and the practical reasons why permutas remain rare on the Costa del Sol despite being structurally sound.

What is a permuta under Spanish law?

A permuta is a contract by which each of the contracting parties obliges itself to give one thing to receive another, as defined in Codigo Civil Article 1538. Unlike a sale, where one party delivers a thing and the other pays a price in money, in a permuta both parties deliver things. The contract is consensual, onerous and reciprocal, and it transfers ownership of both properties simultaneously.

The Civil Code devotes only four articles to the permuta (Arts 1538 to 1541), a deliberately lean regime because Article 1541 states that in everything not specially determined, the permuta is governed by the provisions concerning sale. This means the rules on vendor obligations, hidden defects (saneamiento), and delivery from the sale contract (Arts 1445 to 1525) all apply by reference. A permuta is therefore not a legal orphan: it inherits the entire compraventa framework for anything the four permuta articles do not cover.

Two articles address the specific risks of exchange. Article 1539 protects a party who receives a thing that turns out not to belong to the giver: that party cannot be forced to deliver what they offered in exchange, and can simply return what they received. Article 1540 addresses eviction (eviccion): the party who loses the received property through a third party’s superior title may choose between recovering what they gave in exchange or claiming damages, provided the original property still subsists in the other party’s hands and no good-faith third party has acquired it. These protections mirror the sale contract’s eviction guarantee (Art 1475) but are framed for the bilateral structure of the swap.

How does ITP apply to a property swap?

Each party to a permuta is treated as the acquirer of the property they receive, so each owes Impuesto sobre Transmisiones Patrimoniales (ITP) on that property’s value. The taxable event is the onerous inter vivos transmission of goods and rights that form part of a person’s or entity’s patrimony, per Article 7.1.A of the consolidated ITP and AJD law (RDLeg 1/1993). A permuta is two onerous transmissions occurring in a single contract, so the tax administration treats it as two separate taxable acquisitions.

The base imponible (taxable base) under Article 10.1 is the value of the transmitted good. Since 1 January 2022, following the reform introduced by Ley 11/2021, the base is the valor de referencia de Catastro (the cadastral reference value determined from notarial sale prices in the area). If the declared value or the agreed price is higher than the reference value, the higher figure applies. For a permuta, each party’s tax base is the reference value of the property they receive (or the market value or agreed value if higher), not the value of the property they give up. This is the critical structural point: a swap of two EUR 400,000 properties generates two ITP liabilities of EUR 28,000 each at the Andalusia 7 per cent general rate, not a single EUR 28,000 charge on the difference.

In Andalusia the general ITP rate for resale residential property is a flat 7 per cent, fixed permanently by Ley 5/2021 of 20 October (Ley de Tributos Cedidos de la Comunidad Autonoma de Andalucía), which replaced the previous progressive scale. A reduced rate of 6 per cent applies under Article 43.1.a) when the received property is the acquirer’s habitual residence and its value does not exceed EUR 150,000. A further reduced rate of 3.5 per cent applies under Article 43.1.b) to buyers under 35 (up to EUR 150,000), and under Articles 43.1.c) and 43.1.d) to persons with disabilities and families with three or more children (up to EUR 250,000). If either property in the swap is a new build from a developer, that side of the transaction falls under IVA at 10 per cent plus AJD at approximately 1.2 per cent, not ITP, because the developer’s transmission is subject to IVA. A swap between two private resale properties is the standard ITP case.

The ITP filing deadline in Andalusia is two months from the day following the devengo (the escritura signing date), per Article 69 of Ley 5/2021 as amended by Ley 8/2025 of 22 December (the 2026 Andalusia budget law). Both parties file separately via Modelo 600 with the Agencia Tributaria de Andalucía, each declaring the property received. Late filing triggers surcharge interest and, after the period, penalty proceedings.

How is capital gains tax calculated on a permuta?

A permuta triggers a capital gains tax liability for each party because each is disposing of a property and receiving something of value in return. The gain is the difference between the acquisition value (valor de adquisicion) of the property given up and the transmission value (valor de transmision), which for a permuta is the market value of the property received.

For a Spanish tax resident, the gain forms part of the savings base (base del ahorro) under Ley 35/2006 (IRPF) Article 33, taxed at the 2026 savings-income scale: 19 per cent on the first EUR 6,000, 21 per cent from EUR 6,000 to EUR 50,000, 23 per cent from EUR 50,000 to EUR 200,000, 27 per cent from EUR 200,000 to EUR 300,000, and 30 per cent above EUR 300,000. The top rate of 30 per cent was raised from 28 per cent by Ley 7/2024, with effect from the 2025 tax year, as confirmed in the BOE consolidated text of Ley 35/2006 (Article 66.2, last updated April 2026).

For a non-resident, the gain is taxed under the Impuesto sobre la Renta de No Residentes (IRNR, RDLeg 5/2004) at a flat 19 per cent rate. Non-residents do not benefit from the progressive savings scale. The 3 per cent buyer retention under Modelo 211, which applies to cash purchases from non-resident sellers, presents a practical question in a permuta: since each party acquires a property for consideration (the other property), the retention mechanism technically applies to the value of the property received. However, because there is no cash payment from which to withhold, the non-resident party must self-assess and pay the full 19 per cent CGT via Modelo 210 rather than relying on the buyer-side retention. A tax advisor should confirm the filing position before signing, because the AEAT has not issued specific permuta guidance on the Modelo 211 interaction.

The worked example below illustrates a resident-to-resident swap. The CGT calculation for each party uses the market value of the received property as the transmission value, regardless of any cash equalisation payment.

What about plusvalia municipal?

Both parties owe plusvalia municipal (IIVTNU, Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana) on the land value increase of the property they transfer, because each party is a transmitente. The tax is levied by the municipality where each property is located, so a swap of properties in two different towns generates two separate plusvalia filings, each with its own town hall.

Since RDL 26/2021 of 8 November, the taxpayer may choose between two calculation methods and the municipality must apply the one that results in the lower liability: the objective method (based on the cadastral land value multiplied by municipal coefficients and a years-of-ownership multiplier) or the real-gain method (based on the actual difference between acquisition and transmission values). If no real gain exists, no plusvalia is owed. This dual-method system was introduced after the Constitutional Court rulings of 2017 and 2021 (STC 182/2021) that invalidated the previous single-method system for taxing non-existent gains.

For a permuta, the transmission value for the real-gain method is the market value of the property received, consistent with the ITP and CGT treatment. The filing deadline is 30 working days from the escritura signing, unless the local municipality has set a different period.

What is the cash equalisation payment (cuota compensatoria)?

When the two properties in a permuta have different market values, the party receiving the more valuable property pays a cash supplement to the other. This is the cuota compensatoria, and it is a standard feature of unequal exchanges.

The cash payment does not reduce the ITP base. Each party’s ITP is still calculated on the full value of the property received. If Party A gives a EUR 300,000 apartment and receives a EUR 500,000 villa, Party A pays ITP on EUR 500,000 (EUR 35,000 at 7 per cent in Andalusia) and Party B pays ITP on EUR 300,000 (EUR 21,000), while Party A also pays the EUR 200,000 cash equalisation to Party B.

For CGT, the cash payment is an additional element of the consideration for the party who receives it, but the transmission value for the gain calculation remains the market value of the received property. The practical effect is that a permuta with a large cash equalisation is fiscally similar to a purchase with a part-exchange, because the cash component is taxed as part of the overall consideration.

How does a permuta differ from a dacion en pago?

A permuta and a dacion en pago are both non-cash property transfers, but they serve fundamentally different purposes and carry different tax consequences. A permuta is a reciprocal exchange between two property owners, with no pre-existing debt involved. A dacion en pago is the surrender of a single property to a creditor to extinguish an existing debt, typically a mortgage. The distinction matters because the dacion en pago of a debtor’s habitual residence carries a CGT exemption that a permuta can never match.

Under IRPF Article 33.4.d (Ley 35/2006), the capital gain arising from the dacion en pago of the debtor’s habitual residence is exempt from IRPF when three conditions are met: the transmission is by dacion en pago or by a judicial or notarial foreclosure, its purpose is to cancel debts secured by a mortgage on that habitual residence, and the debts are owed to a credit institution or any entity that professionally grants mortgage loans. The debtor must also lack other assets sufficient to cover the total debt and avoid the transfer. The AEAT confirms this exemption on its sede electronica, updated March 2026. The dacion en pago of the habitual residence is also exempt from plusvalia municipal under the same conditions.

A permuta never qualifies for the Article 33.4.d exemption because it does not involve the cancellation of a pre-existing debt to a creditor. Even if one party happens to be transferring their habitual residence, the recipient is another property owner, not a lender, and the purpose is an exchange of assets, not a debt settlement. The gain crystallises in full in the year of the permuta, taxed at the savings-base scale for residents or 19 per cent flat for non-residents.

Feature	Permuta	Dacion en pago
Legal basis	Codigo Civil Arts 1538-1541	Codigo Civil Art 1173 (dacion en pago)
Purpose	Exchange of two properties	Extinction of a pre-existing debt
Parties	Two property owners	Debtor and creditor (usually a bank)
Number of properties	Two (reciprocal)	One (surrendered to creditor)
CGT on habitual residence	Taxable at 19-30 per cent	Exempt under IRPF Art 33.4.d if conditions met
Plusvalia municipal	Always owed by each transmitente	Exempt for habitual residence dacion en pago
ITP	Each party pays on received property	Paid by the creditor-acquirer, subject to exemptions
Cash component	Cuota compensatoria if values differ	No cash; debt cancellation is the consideration

The dacion en pago route is explored in detail in the dacion en pago mortgage guide, and the broader comparison of all transfer methods is in the property transfer method comparison.

How does the notary and registry process work?

A permuta is executed in a single escritura de permuta signed before a notary. The deed records both reciprocal transfers, the identification of both properties, the agreed values, any cash equalisation payment, and the parties’ details. The notary verifies the identity and capacity of both parties, checks the Land Registry for both properties (nota simple), and confirms that no embargoes or undisclosed charges exist.

After signing, the notary files the deed with the Land Registry (Registro de la Propiedad). The registry records two transactions: the cancellation of each party’s outgoing title and the inscription of their incoming title. Both properties must be free of charges that would prevent the transfer, or the charges must be assumed or settled as part of the swap agreement. The registry filing deadline is the same as for a sale, and the afeccion fiscal (tax lien) noted by the notary under ITP Article 5 attaches to both properties until the transfer taxes are settled.

A single escritura reduces notary and registry costs compared to two separate sale deeds, because one notary session and one base fee cover both transfers. The notary arancel is calculated on the higher of the two property values, not on the sum, which is a genuine saving for the parties. The property deed types guide explains the escritura structure in more detail. The practical timeline from signing to full registry inscription is typically four to eight weeks, the same as a standard sale.

Permuta versus sale and repurchase: a worked comparison

Consider two owners on the Costa del Sol. Owner A has a EUR 400,000 apartment in Marbella acquired for EUR 250,000. Owner B has a EUR 400,000 townhouse in Mijas acquired for EUR 320,000. They agree to swap. Both properties are resales in Andalusia, and both owners are Spanish tax residents. The table below shows the tax outcome for each party.

Tax or cost	Owner A (gives Marbella apt, receives Mijas house)	Owner B (gives Mijas house, receives Marbella apt)
ITP at 7 per cent on received property	EUR 28,000 on EUR 400,000	EUR 28,000 on EUR 400,000
CGT on gain (transmission value EUR 400,000)	Gain EUR 150,000, tax at savings scale: approx EUR 30,300	Gain EUR 80,000, tax at savings scale: approx EUR 16,800
Plusvalia municipal (town where property given is located)	Marbella town hall, on land value increase EUR 250,000 to EUR 400,000	Mijas town hall, on land value increase EUR 320,000 to EUR 400,000
Notary and registry	Single escritura, fee on higher value EUR 400,000	Shared, single escritura
Cash equalisation	None (equal values)	None (equal values)

The combined tax cost is approximately EUR 58,300 for Owner A and EUR 44,800 for Owner B, plus the two plusvalia charges. A conventional sale and repurchase would generate broadly the same ITP (each buyer pays 7 per cent on their purchase), the same CGT (each seller pays on their gain), and the same plusvalia (each seller pays on their land increase). The permuta’s only structural saving is the single notary deed and the avoidance of a double chain of agency fees, because no estate agent is involved in a direct exchange.

The real barrier to permutas is not tax but match-making. Finding two owners whose properties are of comparable value, in locations each desires, with no chain dependency, is logistically difficult. Most swaps occur within families (downsizing parents swapping with a child’s growing family) or between developers trading stock. For arm’s length buyers, a sale followed by a separate purchase remains the standard route, and the property transfer method comparison covers all the alternatives.

When does a permuta make sense?

A permuta is worth considering in three scenarios. First, when two owners have precisely matching needs and comparable property values, the single-deed efficiency and the avoidance of double agency fees produce a modest saving. Second, when one party cannot sell their property on the open market (an illiquid asset, a location with weak demand), a swap with a motivated counterparty can unlock the exchange without a cash buyer. Third, in family or estate planning contexts, a permuta can restructure ownership without triggering a full cash transaction, though the tax treatment is identical to a sale and the non-resident CGT and 3 per cent retention rules apply if any party is non-resident.

The mechanism is less attractive when the properties are of very different value, because the cash equalisation payment must be funded separately and the ITP on the higher-value property still falls on the receiver. It is also unattractive when one party has a very large unrealised gain, because the CGT liability crystallises on the exchange just as it would on a sale, with no deferral mechanism. Spain does not offer a like-kind exchange deferral equivalent to the United States Section 1031, so the gain is taxed in the year of the permuta.

If the goal is instead to exit a mortgaged property that has become unaffordable, the dacion en pago is the relevant mechanism, not a permuta. The dacion en pago of the habitual residence to the lender can extinguish the mortgage debt and, if the Article 33.4.d conditions are met, avoid the CGT liability entirely, a tax outcome no permuta can replicate.

What are the practical steps to execute a permuta?

The process mirrors a sale but with two parties performing both buyer and seller roles simultaneously:

1. Due diligence on both properties: each party obtains a nota simple from the Land Registry, checks for charges and embargoes, and commissions a survey if needed.
2. Valuation agreement: both parties agree the market value of each property, typically supported by independent valuations, to establish the ITP base and the CGT transmission value. Check the valor de referencia de Catastro via the sede electronica, because it sets the minimum ITP base.
3. Cash equalisation calculation: if values differ, the cuota compensatoria is fixed and the payment mechanism is agreed (usually at notary signing).
4. Tax planning: each party calculates their CGT liability and confirms the plusvalia method with the relevant town hall. Non-residents confirm their Modelo 210 filing obligations and the Modelo 211 retention question with a tax advisor.
5. Escritura de permuta: both parties sign the single deed before a notary, who records both transfers, the values, and any cash payment.
6. ITP filing: each party files Modelo 600 within two months, paying ITP on the received property’s value. The Andalusia ITP guide covers the rate and filing mechanics.
7. CGT and plusvalia filing: residents declare the gain in their annual IRPF return, non-residents file Modelo 210, and both file plusvalia with the relevant town hall.
8. Registry inscription: the notary files the deed with the Land Registry, which records both the outgoing and incoming titles for each party.