Spanish Property Taxes
Stamp Duty and Transfer Tax in Spain Explained
Learn about ITP, VAT, and AJD when buying Spanish property. Clear explanations of transfer tax, stamp duty, and real cost examples for buyers.
Buying property in Spain involves purchase taxes that don't exist in many other countries. The rules change depending on whether you buy new or resale, and rates vary by region. Understanding these costs upfront prevents budget surprises and helps you plan with confidence.
Three taxes can apply when purchasing Spanish property: Transfer Tax (ITP), VAT (IVA), and Stamp Duty (AJD). Which ones you pay depends entirely on whether the property is a resale or new build.
Transfer Tax (ITP) applies only to resale properties—by far the most common type of purchase for international buyers. It is calculated as a percentage of the declared purchase price, typically ranging from 6% to 10%, depending on the autonomous community where the property is located. For example, the Valencia region charges 10%, while Madrid charges 6% on amounts up to €1 million.
VAT (IVA) replaces ITP for new-build properties bought directly from a developer. The national rate is a flat 10% for residential property. In the Canary Islands, a local tax called IGIC applies at 6.5% instead of standard VAT.
Stamp Duty (AJD) is an additional tax charged alongside VAT on new-build purchases. Rates vary by region from 0.5% to 1.5%. It applies because new-build transactions require a notarised deed being registered for the first time. AJD does not apply to resale properties.
The key rule to remember: you never pay both ITP and VAT on the same purchase. It is always one or the other, determined by the property type. For a complete overview of all buying costs, see our costs and taxes guide.
Transfer Tax (ITP)
Paid on resale properties at 6–10%, set by each autonomous community. The single biggest purchase tax for most buyers.
VAT (IVA)
Charged at a flat 10% on new builds purchased directly from a developer. Replaces ITP entirely.
Stamp Duty (AJD)
Additional 0.5–1.5% on new-build purchases only, paid alongside VAT. Varies by region.
Resale vs New Build Taxes
Resale Property
New-Build Property
For resale buyers, ITP is the only purchase tax you face. The rate is set by each autonomous community, so two identical properties in different regions can carry significantly different tax bills. Before budgeting, always confirm the specific rate where you are buying.
New-build buyers pay VAT plus stamp duty—typically totalling 10.5% to 11.5% of the purchase price. While the VAT rate is fixed nationally at 10%, the AJD rate varies. In Andalusia stamp duty is 1.5%, while in Madrid it is just 0.75%. These differences can amount to several thousand euros on a single transaction.
If you are considering a new build, our new-build buying guide walks through the entire process step by step. Have a specific question about your situation? Our panel of tax and legal experts can advise you at no cost—just ask.
What You'll Actually Pay
| Cost Item | €200,000 | €300,000 | €500,000 |
|---|---|---|---|
| ITP (10%, resale) | €20,000 | €30,000 | €50,000 |
| IVA + AJD (11.5%, new build) | €23,000 | €34,500 | €57,500 |
| Legal fees (est.) | €1,500–2,000 | €2,000–2,500 | €2,500–3,500 |
| Notary + registry | €800–1,200 | €1,000–1,500 | €1,500–2,000 |
| Total extra (resale, est.) | €22,300–23,200 | €33,000–34,000 | €54,000–55,500 |
These figures show that purchase taxes and fees typically add 10–13% to the property price. The exact amount depends on whether the property is resale or new build, the region, and your individual circumstances.
Do non-residents pay more? This is one of the most common myths. Transfer tax and stamp duty rates are identical regardless of your residency status. Non-residents and residents pay exactly the same purchase taxes. The differences between residents and non-residents only appear with ongoing annual taxes, not at the point of purchase.
When do you pay? Transfer tax (ITP) must be paid within 30 days of signing the public deed (escritura) at the notary. Your lawyer typically handles the payment and filing on your behalf. For new builds, VAT is paid directly to the developer at completion, and AJD is settled separately through a regional tax filing.
Use our buying costs calculator to see exact figures for your specific property and region.
Savings and Common Questions
Several regions offer reduced ITP rates for specific buyer groups. First-time buyers, purchasers under 35, families with three or more children, and people with disabilities may qualify for lower transfer tax—sometimes as low as 3–5% instead of the standard rate.
These reductions are not automatic. You must claim them when filing your tax declaration, and eligibility rules vary by region. A qualified independent lawyer can confirm whether you qualify before you complete the purchase.
The most common mistake buyers make is assuming national rates apply everywhere. Spain's 17 autonomous communities each set their own tax schedule. Budgeting based on a different region's rate can leave you thousands of euros short at completion. Always verify the rate for the specific region where your property is located.
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