Buying Property in Spain: ITP, AJD & VAT — Complete Tax Guide 2026

When buying a resale property: ITP (Impuesto sobre Transmisiones Patrimoniales) 6-11% depending on the autonomous community, plus notary fees (~0.2-0.5%), Land Registry fees (~0.2-0.4%), and gestor fees (~€300-600). When buying a new-build: VAT (IVA) at 10% (or 4% for VPO protected housing) plus AJD (Actos Jurídicos Documentados / Stamp Duty) at 0.5-2% depending on the region. Total acquisition costs including all taxes and fees: typically 10-14% for resale, 13-16% for new build.

ITP (part of ITPAJD under Royal Decree-Law 1/1993) applies to resale properties — not new builds. The rate is set by each autonomous community: Catalonia 10%, Andalusia 7%, Madrid 6%, Valencia 10%, Balearics 8-13% (progressive scale). The tax base is the higher of the declared sale price or the reference value (valor de referencia) established by the Catastro.

New-build properties are subject to VAT (IVA) under Ley 37/1992 (LIVA): 10% for general residential, 4% for officially protected housing (VPO). Additionally, AJD (Actos Jurídicos Documentados / Stamp Duty) under LITPAJD applies at 0.5-2% depending on the autonomous community. The buyer pays VAT directly to the developer; AJD is paid to the regional tax authority.

AJD (Stamp Duty on Documented Legal Acts) applies to new-build purchases, not resales. The rate varies by autonomous community: Catalonia 1.5%, Madrid 0.75%, Andalusia 1.2%. Since 2018 (Ley 5/2019), banks pay AJD on mortgage deeds — not buyers — following a landmark Spanish Supreme Court ruling.

Not directly for personal-use properties. However, if you rent out the property, ITP or AJD paid at purchase is deductible as an acquisition cost when calculating the capital gain on eventual sale (under Art. 35 LIRPF). For rental income purposes, these taxes also contribute to the amortisable cost base of the property.

Notary fees are set by the official arancel (RD 1426/1989): approximately 0.2-0.5% of the deed value. Land Registry (Registro de la Propiedad) fees: approximately 0.1-0.4%. Gestor (administrative agent): typically €300-600. Total acquisition costs including ITP/AJD, notary, and registry: typically 10-14% of purchase price for resale properties, and 13-16% for new builds.