3.2.2. Taxes for Buying New Builds

If you are buying a new residential property from a developer or a bank you will have to pay the following taxes:

VAT (IVA) and STAMP DUTY (Actos Jurídicos Documentados – AJD)

You will have to pay VAT(IVA) and STAMP DUTY (Actos Jurídicos Documentados – AJD) for new residential properties, never previously lived in, plots of land and commercial properties.

VAT (IVA) is a National Tax, the same all over Spain (with the exception of the Canary Islands). 

VAT on new build properties in Spain is 10%.

Land, commercial properties and garage parking space are taxed up to 21%.

Stamp duty (AJD) is around 1% of the total price of the purchase, it varies from region to region.

VAT and Stamp Duty are paid by the buyer. If a deposit is paid before completion of the sale, said deposit is subject to VAT at the time the deposit is paid. There is no transfer tax to pay.