Buying Property in Spain as a Non-Resident: Wealth Tax, Modelo 720 & Gestoría Legal Checklist
Direct 60-Second Answer (Property Conveyancing Taxes in Spain)
What taxes and legal checks are mandatory when buying property in Spain? Acquisition taxes vary fundamentally between resale and new-build properties. For resale properties, the buyer pays Impuesto sobre Transmisiones Patrimoniales (ITP), ranging from 6% to 11% depending on the Autonomous Community (10% in Catalonia and Valencia, 7% in Andalusia, 6% in Madrid). For new developments, the buyer pays 10% IVA (VAT) plus 0.5% to 1.5% Stamp Duty (AJD). In addition, total closing costs include notary fees, land registry inscription, and legal conveyancing gestoría fees (~10% to 14% on top of the purchase price).
💶 Resale tax: ITP (6% to 11% by region)
🏗️ New build tax: 10% IVA + 0.5%-1.5% AJD stamp duty
📑 Critical document: Nota Simple from the Registro de la Propiedad
Due Diligence Checklist for Foreign Buyers
- Nota Simple Informativa: Confirms clear title, verifying no outstanding mortgages, liens, or court embargoes on the property.
- Certificado de Deuda Cero de la Comunidad: Mandatory certificate signed by the property administrator stating that all HOA community fees are fully paid.
- Licencia de Primera Ocupación / Cédula de Habitabilidad: Confirms the property is legally fit for residential use and eligible for water and electricity hookups.
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