Chapter

VAT, IGIC and AJD on new builds in Spain

§ 1The taxes on a new home

A first sale of a new home by the developer is taxed differently from a resale. The tax agency explains that such a sale carries VAT, while a home sold by an earlier owner carries the regional transfer tax. The notarial deed of the new home then carries a further tax, stamp duty, known as AJD. For a buyer the result is two taxes on one purchase, and both belong in the budget from the first day. The wider picture is in all costs and taxes, and the section on resale is ITP on resale homes.

§ 2VAT

The rate of VAT on housing from a developer is 10%. It is added to the price, so the first question for any developer is whether the price shown includes it. A price quoted without VAT is a lower number than the one you will pay, and the difference on a large purchase is a large sum. The comparison with the transfer tax is set out in VAT or transfer tax.

§ 3Stamp duty on the deed

AJD is a tax on documents. The national law taxes first copies of notarial deeds with a valuable object when they contain acts that can be registered and are not subject to the main transfer tax or to inheritance and gift tax, at the rate the region sets. The base is the declared value, and for real estate it cannot be lower than the official value in the law. Where a region has set no rate, the national default is 0.50%.

Regions have set their own rates, and they differ. Stamp duty on the deed explains how the tax works and why the base needs a calculation, and AJD rates by region gives the rates we have verified.

§ 4The rates in the regions we have checked

In Andalusia the rate is 1.2%. In the Valencian Community the general rate for notarial documents is 1.4% from 1 June 2026, according to law-firm summaries; the regional agency page still shows the earlier, higher rate and has no date, and we did not read the operative text. In Murcia the rate on the deed of a new home is 1.5% since 25 July 2025; the regional agency FAQ still shows the earlier, higher rate and has no date, so it looks out of date, and we read the preamble of the regional law, not the operative article. Ask your adviser to confirm the rate for your deed. In Madrid, an announcement of 5 October 2026 gives the current rate as 0.75% and proposes a lower one for under-forties, which is not law.

Several regions also reduce the rate for a habitual home, with conditions on age, income and use. We print a reduced rate only when we have verified it, and the regional page says where the gaps are.

§ 5The Canary Islands

The Canary Islands have their own indirect tax, IGIC, and the Canarian law of 2018 set IGIC rates for first deliveries of new housing, including reduced rates for a habitual home within price limits. We have verified the text as enacted in 2018 but not any later change, so we do not print current rates. IGIC in the Canary Islands explains what we know and what to ask.

§ 6Putting it into a budget

Add VAT and AJD to the price, then the notary, registry and lawyer from written quotes, then the set-up costs and a reserve. Ask your adviser to calculate the AJD on your own deed rather than applying a rate to the price, since the base follows the tax rules. The costs around the taxes are in the full list of buying costs.

§ 7Timing and proof

VAT is normally settled with the developer, and AJD is paid after signing, within the regional deadline. Keep the invoice, the deed and the proof of each payment in one folder. If the developer changes the price or the rate after you reserve, ask in writing why, and ask your adviser whether the change is justified.

§ 8Why the region matters more than the rate you read online

Many websites quote one figure for stamp duty and apply it everywhere. Because AJD is regional, a figure that is right for one region is wrong for another, and a figure from before a change is wrong for everyone. Check the region, the date and the source before you trust a number, and do the same for the figures on these pages, which carry their sources and the date we last checked them.

§ 9Other taxes and costs that follow a purchase

The tax a seller pays on the rise in land value is described in the tax on the increase in value of the land, and the fees of the professionals who work on the deed are explained in the professional fees on a new home.

Once the purchase is complete, the bills that come every year are described in the yearly property taxes.

§ 10Taxes for non-residents, sellers and heirs

The yearly taxes of an owner who lives abroad are described in non-resident taxes explained, and the tax on the profit of a sale is described in capital gains tax on a sale explained.

The tax on inheritances and gifts is described in inheritance and gift tax explained.

Tax note. Rates depend on the region, the type of property and the buyer, and they change. Figures here are dated and sourced; examples are illustrative and show their assumptions. Confirm yours with the regional tax agency or a tax adviser.