In Spain, buyers of new-build homes normally pay IVA (10% general, 4% for qualifying protected housing) plus AJD, while buyers of second-hand homes normally pay ITP, whose rate depends on the autonomous community. On top of whichever tax applies, plan for notary, registry, and gestoría fees.
TL;DR:
- Buyers of new homes pay IVA at 10% or 4% for protected housing, plus AJD, which varies by autonomous community, and additional notary and registry fees.
- For second-hand homes, the taxable base for ITP depends on the higher of the sale price, declared value, or Catastro reference, affecting the final tax amount.
- AJD taxes the deed formalization and is set regionally, often combined with notary, registry, and gestoría costs, totaling about 10 to 12% of the purchase price.
- Regional differences in ITP and AJD can significantly alter costs, with bonifications available for certain buyer profiles, but conditions must be verified beforehand.
- Pre-purchase checks on seller status, property values, and tax obligations are essential to avoid costly surprises during closing.
Table of Contents
- What IVA and AJD mean for buyers of a new-build property
- How ITP works for second-hand homes and how the taxable base is calculated
- Actos Jurídicos Documentados and notary and registry costs explained
- Other taxes and costs: plusvalía municipal, mortgage costs, and an overall estimate
- How autonomous communities change ITP and AJD and where buyers can find reductions
- Step-by-step checklist before you sign and before escriturar
- Agency perspective: common buyer errors and how early checks prevent them
- How we help with tax checks, gestoría, and closing coordination
- FAQ
- Sources
What IVA and AJD mean for buyers of a new-build property
A property counts as new when a promoter sells it for the first time after construction or a full renovation. That “first delivery by a promoter” rule is what triggers VAT rather than transfer tax, and it is the seller’s fiscal status, not the buyer’s preference, that decides which tax applies. The Agencia Tributaria’s Calificador de operaciones inmobiliarias exists specifically to resolve this question before a buyer commits funds.
The general IVA rate on new housing is 10%, dropping to 4% for officially protected housing (VPO), according to the Agencia Tributaria’s Calificador. The Canary Islands apply IGIC instead of IVA, since the archipelago sits outside the common VAT territory. Our guide to IVA on a new home in Spain breaks down how the rate interacts with the purchase contract.
On top of IVA, new-build purchases carry AJD (Actos Jurídicos Documentados), the stamp duty charged when the notarial deed is formalized. AJD on these transactions is set by the autonomous community and varies.
Before signing a reservation contract, ask the seller directly:
- Whether the property is a first delivery by a registered promoter or a resale.
- Whether the quoted price already includes IVA or is stated net of tax.
- Which autonomous community’s AJD rate applies to the escritura.
How ITP works for second-hand homes and how the taxable base is calculated
ITP (Impuesto sobre Transmisiones Patrimoniales) is the transfer tax owed by the buyer, not the seller, whenever a second-hand home changes hands outside the promoter-to-first-buyer scenario. The buyer files and pays it directly, usually through Modelo 600 or a regional equivalent form.
ITP rates vary depending on the autonomous community, with some examples given such as a 7% rate in Andalucía and around 10% in others, according to the Agencia Tributaria’s Calificador. The taxable base is not simply the agreed price: tax offices use whichever is higher among the sale price, the declared value, or the Catastro reference value, a change that has raised bills for buyers who negotiated below-market prices, as explained by El Confidencial.
A worked example for a €300,000 second-hand home:
- Confirm the Catastro reference value does not exceed €300,000; if it does, that figure becomes the tax base.
- Apply the regional ITP rate, say 7% in Andalucía, giving €21,000 in transfer tax.
- File and pay within the statutory window, generally one month from the deed date, through the regional electronic form.
Our guide to property taxes in Spain for 2026 buyers walks through several regional scenarios side by side.
Actos Jurídicos Documentados and notary and registry costs explained
AJD taxes the legal act of formalizing the deed, not the transfer itself, which is why it sits alongside ITP on second-hand homes and alongside IVA on new-builds rather than replacing either. In most second-hand transactions, the variable AJD quota does not apply separately because ITP already covers the transfer, but new-build and mortgage-related deeds commonly trigger their own AJD charge.
Budgeting for formalization costs beyond the main tax usually means setting money aside for:
- Notary fees, which scale with the property’s declared value and the complexity of the deed.
- Land registry fees for inscribing the new ownership.
- Gestoría fees if you hire someone to handle the paperwork and filings on your behalf.
- A property valuation if your lender requires one for mortgage purposes.
These costs rarely show up in the advertised sale price, which is why the overall 10 to 12% cushion matters more than the headline tax rate alone.
Other taxes and costs: plusvalía municipal, mortgage costs, and an overall estimate
Plusvalía Municipal (IIVTNU) is a municipal tax on the increase in land value since the property’s last sale, and it is legally the seller’s obligation, though contracts occasionally shift it to the buyer, according to Orozco y Asociados. Always get this allocation in writing before signing, since verbal assumptions about who pays have caused disputes at closing. Our explainer on plusvalía municipal covers how the tax is calculated and what sellers and heirs need to know.
If you are financing the purchase, factor in mortgage-related costs: the bank’s appraisal fee, arrangement fees, and the AJD charged on the mortgage deed itself, which is separate from the AJD on the purchase deed.
A combined budget cushion of roughly 10 to 12% of the purchase price is the commonly cited planning figure once you stack ITP or IVA, AJD, notary, registry, and gestoría costs together, per the Agencia Tributaria’s own classification guidance on how these transactions are taxed.
Typical line items feeding that cushion include:
- The main tax, ITP or IVA plus AJD, which usually represents the largest single cost.
- Notary and registry fees for the deed and inscription.
- Gestoría fees if you delegate the filings.
- Bank-related costs if a mortgage is involved.
How autonomous communities change ITP and AJD and where buyers can find reductions
ITP and AJD are devolved taxes, meaning each autonomous community sets its own rate within a national framework, which is why identical homes in different regions can carry noticeably different tax bills. This is also why bonifications differ so sharply from one community to the next.
Common bonification categories include:
- Reduced rates for buyers under a set age threshold, often with an income ceiling attached.
- Benefits for large families or buyers with a recognized disability.
- Incentives in municipalities flagged for depopulation, meant to attract new residents.
Catalonia offers a concrete illustration: certain young buyers can access a reduced ITP rate of 5%, and AJD bonifications in specific cases have reached 100%, according to La Vanguardia. These benefits almost always come with strings attached: a minimum residency period, occupancy requirements, and documentary proof that the tax office can audit after the fact. Failing to meet the conditions, commonly a three-year residence requirement, can trigger clawback of the benefit, as the Junta de Andalucía’s guidance on transferred taxes notes for its own regional conditions.
Pro Tip: Ask your regional tax office for the bonification’s written conditions before you file, not after, since some benefits must be claimed within the same filing rather than reclaimed later.
Step-by-step checklist before you sign and before escriturar
A short, disciplined checklist prevents most of the tax surprises buyers run into during a Spanish purchase.
- Run the property through the Agencia Tributaria’s Calificador and keep the result on file.
- Get the seller’s status in writing: promoter and first delivery, or private second-hand sale.
- Check the Catastro reference value early, since it can override your negotiated price as the tax base.
- Request a full mortgage cost breakdown from your lender if financing is involved.
- Get written confirmation of who pays plusvalía municipal before signing the reservation contract.
- Reserve the full 10 to 12% cushion and calendar the ITP or AJD filing deadline, generally one month from the deed date.
Pro Tip: If any step above feels uncertain, a gestoría or property lawyer familiar with your specific autonomous community can confirm the figures faster than a general online calculator.
Foreign buyers face the same rules but often additional paperwork around residency and financing; our guide for foreign buyers in Spain covers what changes when you are not a Spanish tax resident.
Agency perspective: common buyer errors and how early checks prevent them
The same mistakes repeat across purchases: buyers assume a sale is second-hand without confirming the seller’s fiscal status, skip the Catastro reference value check, or discover too late that a bonification required residency they cannot commit to. Each of those errors can cost thousands of euros at the worst possible moment, right before signing. Coordinated paperwork and an early tax check, done before any deposit changes hands, resolve nearly all of it.
— YellowRock
How we help with tax checks, gestoría, and closing coordination
We handle the parts of a Spanish property purchase that most often cause tax surprises: confirming whether IVA or ITP applies, coordinating with a gestoría on filings, and lining up the paperwork lenders and tax offices expect from non-resident buyers.
Our support typically includes:
- A tax estimate tailored to your specific property and autonomous community.
- Financing guidance for non-resident buyers through our financing service.
- Document checks covering seller status, Catastro values, and plusvalía responsibility.
- Coordination with notaries and registries so filing deadlines are not missed.
If you want a clear picture of what your specific purchase will cost in taxes and closing fees, our full services page lists everything we offer, including a tailored tax estimate before you commit to a property.
FAQ
What taxes do you pay when buying a home in Spain?
You pay either IVA plus AJD for a new-build (10% IVA generally, 4% for protected housing) or ITP for a second-hand home, with rates set by the autonomous community. On top of that, budget for notary, registry, and gestoría fees, plus any mortgage-related costs.
What taxes does a foreign buyer pay when purchasing a home in Spain?
Foreign buyers pay the same ITP, IVA, and AJD as Spanish residents, since these taxes are determined by the property and transaction type, not the buyer’s nationality. Non-residents may face additional paperwork around financing and tax representation, covered in our guide for foreign buyers.
How much does it cost to formalize a €300,000 home purchase?
For a second-hand home, ITP alone could reach around €21,000 at a 7% regional rate, with notary, registry, and gestoría fees adding further cost. Using the common 10 to 12% budgeting rule, total taxes and fees on a €300,000 purchase typically land between €30,000 and €36,000.
How much tax do you pay on the full purchase price?
The tax owed depends entirely on what the the full purchase price represents, since Spain taxes property transfers as a percentage of the declared or Catastro value rather than a flat amount regardless of context, explained in detail in what is the capital gains tax?. If the full purchase price is the full purchase price of a second-hand home, ITP at a regional rate between 4% and 11.5% would apply to that base, so the exact euro figure depends on which autonomous community sets the rate.
Sources
- Agencia Tributaria — Calificador de operaciones inmobiliarias
- La Vanguardia — Buying a home: what taxes you pay and where you can save thousands
- Orozco y Asociados — Impuestos compra vivienda
