Taxes when buying property in Spain

Taxes When Buying Property in Spain

There are two main types of property purchases in Spain: new-build properties and resale (second-hand) properties. Each is taxed differently.

1. New-Build Property (First Transfer)

If you're buying directly from a developer:

VAT (IVA – Impuesto sobre el Valor Añadido):

10% for residential properties (e.g., apartments, houses)

21% for commercial properties or land

Stamp Duty (AJD – Actos Jurídicos Documentados):

Between 0.5% and 1.5%, depending on the region (autonomous community)

2. Resale Property (Second Transfer)

If you're buying from a private individual:

Transfer Tax (ITP – Impuesto de Transmisiones Patrimoniales):

Varies by region:

Generally 6%–10% of the purchase price

Catalonia (2025):

10% up to €600,000

11% from €600,001 to €900,000

12% from €900,001 to €1.5M

13% above €1.5M

3. Additional Costs (Not Taxes but Common Fees)

Notary fees: €600–€1,500 depending on the property price

Land registry fees: 0.1%–0.5% of the property price

Legal fees: Usually 1%–2% of the property value

Banking fees: For mortgage setup or money transfer

4. Ongoing Taxes After Purchase

IBI (Property Tax): Annual local tax based on cadastral value

Wealth Tax: Applies to high-value assets; rates range from 0.2% to 3.5%, with exemptions

Non-Resident Income Tax: If you do not live in Spain but own property

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