Understand ITP, VAT and AJD when buying property in Spain and plan your budget accurately.
Property Purchase Taxes in Spain
Understand all property purchase taxes in Spain — ITP, VAT and AJD — and learn how to estimate the real cost of buying a new-build or resale home before signing the deed.
Types of property purchase taxes
The property purchase taxes in Spain depend on whether the property is new-build (first transfer from the developer) or resale (second or subsequent transfer):
The Transfer Tax (ITP) applies to resale homes. The rate varies by Autonomous Community, generally between 6 % and 13 %. Some regions offer lower rates for young buyers or large families.
New properties are subject to VAT (10 %) and also to the Stamp Duty (AJD), usually between 0.5 % and 1.5 % depending on the region.
In addition to taxes, include notary, land registry and agency fees. If you are financing your purchase, review the mortgage costs for foreigners in Spain and the complete breakdown of purchase costs.
Comparison: ITP vs VAT + AJD
Understanding the differences between ITP (resale) and VAT + AJD (new-build) is essential for estimating your real purchase cost. Below you can compare them side by side:
- Applies to second-hand properties.
- Tax rate varies by region (6 % – 13 %).
- Paid to the regional tax office using form 600.
- AJD does not apply in most resale cases.
- VAT (IVA) is generally 10 % on residential property.
- AJD ranges between 0.5 % and 1.5 % depending on the region.
- VAT is paid to the developer, AJD to the regional tax authority.
- Applies to first property transfers and developer sales.
- New-build: property price + 10 % VAT + AJD.
- Resale: property price + ITP.
- Always check if your region offers reduced rates or exemptions.
Tax reductions and exemptions
Several regional governments in Spain grant tax reductions on ITP or AJD for specific groups and housing types. These incentives can considerably lower your overall tax burden.
Reduced ITP rates (typically 4 % – 6 %) when buying a primary residence, provided that the value does not exceed regional limits.
Regional reductions between 2 % – 3 % for first-time home buyers under 35 years of age.
Very low VAT (4 %) and partial AJD exemptions for officially certified protected dwellings.
Always confirm with your regional tax office (Hacienda Autonómica) to ensure you meet the eligibility criteria.
Examples of calculation by property type
The following examples show how final costs can differ significantly depending on the property and region. Values are approximate and may vary with local rates.
• ITP 10 % → 20,000 €
• Notary + Registry → 1,800 €
Total: approx. 221,800 €
• VAT 10 % → 30,000 €
• AJD 1 % → 3,000 €
• Notary + Registry → 2,000 €
Total: approx. 335,000 €
• VAT 4 % → 6,000 €
• AJD 0.5 % → 750 €
Total: approx. 156,750 €
Practical cases: new-build or resale?
Comparing how property purchase taxes in Spain affect the final cost helps determine the most cost-effective option for your situation:
Price: 240,000 € | ITP 10 % → 24,000 € | Total: 264,000 €
Conclusion: If ITP increases to 11 %, the cost gap versus new-build narrows substantially.
Price: 280,000 € | VAT 10 % → 28,000 € | AJD 1.2 % → 3,360 € | Total: 311,360 €
Conclusion: Applying a 0.3 % AJD reduction saves more than 2,000 € overall.
Our team analyses regional tax rules to calculate your total cost before you sign the purchase contract — ensuring no surprises and full transparency.
Glossary and Frequently Asked Questions
VAT or ITP are paid at the notary on signing. AJD must be filed at the regional tax office within 30 working days using form 600 or 601.
ITP applies to resale homes, while AJD is charged on notarised documents such as new-build deeds or mortgage loans.
No. Non-residents pay the same VAT or ITP and AJD as residents. Differences arise later with income tax (IRNR). We assist with your NIE number and mortgage for foreigners.
Notary, Land Registry, agency, valuation (if financing) and translations. See our guide to purchase costs in Spain.
Yes. We can obtain your NIE and complete the purchase via a power of attorney.
Not necessarily — in some regions, high ITP rates make new-builds nearly equal in total cost.
The notarised deed of sale, ID (or NIE), and proof of payment of the purchase price.
You have 30 working days from signing to file at the regional tax office.
Yes — check regional rules for young buyers, large families or protected housing.
Avoid mistakes and pay only what’s fair. Our legal and tax specialists guide you through every stage — from reservation to notary signature.
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