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.

Related questions and answers

Still having doubts ? Don't worry Ask Question