When you buy a new build property directly from a developer, you do not pay ITP. Instead, the transaction is subject to two taxes: VAT (Value Added Tax) and AJD (Stamp Duty).Key Points about VAT and AJD:VAT (IVA in Spanish): This is a national tax. For residential property purchases, the general rate is 10%. It is paid directly to the seller (the developer), who then remits it to the tax authorities.AJD (Stamp Duty): This is a regional tax on legal documents. It is levied on the act of signing a public deed that will be registered. The rate varies between 0.5% and 1.5%.Key Advice: You will never pay both ITP and VAT on the same purchase. ITP is for resale properties, and VAT is for new builds. Understanding this distinction is fundamental for accurate budgeting.