Property Taxes When Buying in Spain: ITP, VAT, AJD, and More

Resale Properties: Transfer Tax (ITP)

For second-hand (resale) properties, the main tax is the Impuesto sobre Transmisiones Patrimoniales (ITP) — the property transfer tax. This is a percentage of the purchase price and varies by autonomous community:

• Andalusia: 7%
• Madrid: 6%
• Catalonia: 10%
• Valencia: 10%
• Canary Islands: 6.5%

ITP is paid by the buyer and must be settled within 30 days of the purchase.

New Properties: VAT (IVA) and AJD

For new-build properties purchased directly from a developer, VAT (IVA) applies instead of ITP. The rate is 10% for residential properties (21% for commercial). Additionally, you pay the Impuesto sobre Actos Jurídicos Documentados (AJD) — stamp duty — typically 0.5–1.5% depending on the region.

Notary and Registration Fees

All Spanish property purchases must be completed before a notary (notario). Notary fees are regulated and based on the purchase price — typically €600–€1,200 for most residential purchases. After the notarial deed (escritura), the property must be registered at the Land Registry (Registro de la Propiedad) — typically €300–€700.

Legal Fees

While not legally required, using a Spanish solicitor (abogado) for property purchases is strongly recommended, particularly for foreign buyers. Legal fees are typically 1% of the purchase price plus VAT. A good lawyer will check the property is debt-free, planning permissions are in order, and the seller has legal title.

Ongoing Property Taxes

After purchase, Spanish property owners pay: IBI (Impuesto sobre Bienes Inmuebles) — annual local rates tax (approximately 0.4–1.1% of the cadastral value); Basura (rubbish collection tax) — typically €100–€250/year; IRNR (Non-Resident Income Tax) — for non-residents, an annual tax is payable even if the property is not rented out (approximately 19–24% of 1.1% of the cadastral value).