When you buy a home in Spain, the tax you pay depends on one question: are you buying a resale property or a new build? Resales carry a regional transfer tax (ITP) that is set by each autonomous community. New builds carry 10% VAT plus a stamp duty (AJD). As a rule of thumb, budget roughly 10% to 12% of the price for taxes and fees together. This guide shows how each tax works, how to calculate it, when it is due and what else belongs in your budget.
TL;DR
- Resale homes pay ITP, a regional tax that ranges from about 4% to 10% depending on where the property is.
- New builds pay 10% VAT (4% for protected housing) plus AJD at a regional rate. The Canary Islands use a different system.
- Taxes and fees together usually add around 10% to 12% of the price, so a €200,000 home can cost €20,000 to €24,000 more.
- Form 600 is generally due within 30 working days of signing. Your notary and gestor normally handle it.
- Check how your deposit and costs will be financed before you commit, because banks lend against the price, not the extras.
Table of Contents
- Resale or new build: which tax applies
- ITP: the tax on resale homes
- New builds: VAT and AJD
- What the tax looks like in euros
- Costs that are not taxes
- When and how you pay
- Taxes after you own the property
- Our perspective
- Plan the financing alongside the taxes
- How to budget in five steps
- FAQ
- Sources
Resale or new build: which tax applies
Spain’s official government portal explains the split. A first delivery of a home by a developer is subject to VAT, while used homes and private-party sales are generally subject to ITP. The two taxes do not stack in the same way: a resale does not pay VAT, and a new build does not pay ITP.
What counts as a first delivery? The Spanish Tax Agency says it generally means a home bought from the developer after construction or rehabilitation is finished, unless other people besides the buyer used it continuously for at least two years. So a flat that a developer has finished and never sold is a new build for tax purposes. One that has been lived in for years is a resale, even if it was built by a developer.
This matters for your budget before you make an offer. Two properties at the same price can produce very different tax bills.
ITP: the tax on resale homes
ITP stands for Impuesto sobre Transmisiones Patrimoniales, or Property Transfer Tax. The buyer pays it. The national government sets the framework, but each autonomous community administers ITP and sets its own rate, which is why you see so many different figures online.
The Local reported in April 2025 that resale ITP ran from 4% in the Basque Country to 10% in Galicia, Valencia, Catalonia and Cantabria, with most regions between 6% and 9%. Regions change their rates, so confirm the current figure with the regional tax authority or your gestor before you budget.
A recent example of a change: a Spanish tax adviser’s guide notes that in Valencia, resale homes generally pay 9% ITP, rising to 11% on the whole value for properties above €1,000,000 for tax events from 1 June 2026. If you are looking at a higher-priced home, ask whether a threshold like this applies in that region.
Ceuta and Melilla are a special case. The Tax Agency states that both apply a 50% reduction to the ITP quota.
The taxable base is not always your price
ITP is not always charged on the price you negotiate. Regional authorities compare the declared price with an official reference value from the cadastre (the valor de referencia). If the reference value is higher, the tax can be based on that figure. Ask your gestor to check the reference value for the specific property before you sign, so you know your real bill.
New builds: VAT and AJD
A new home bought on its first delivery carries buyer-paid VAT (IVA in Spanish). Spain’s public administration guidance gives the rates: 10% for a standard new dwelling, 4% for officially protected or publicly promoted housing, and 21% for other property such as commercial premises and land. The Canary Islands have their own indirect tax, IGIC, and The Local reports 7% there for new builds. The bank ING puts the general IGIC rate at 6.5%, so ask which applies to your purchase.
On top of VAT, you pay AJD (Actos Jurídicos Documentados), a stamp duty on the notarial deed. It is also set regionally. The Local reports AJD between 0.50% and 1.50% in the regions it lists. In Valencia, the same adviser guide cited above reports 0.1% for a habitual residence and 1.4% otherwise, which shows how much the buyer’s use of the property can change the figure.
If you pay a deposit during construction, VAT applies to those stage payments as well, so plan your cash flow, not just the final bill.
What the tax looks like in euros
The rates below are illustrative. They show how the arithmetic works, not what your region charges.
| Item | Resale at €300,000 (assumed 8% ITP) | New build at €300,000 (10% VAT, assumed 1.2% AJD) |
|---|---|---|
| Main tax | €24,000 | €30,000 |
| Stamp duty (AJD) | Not charged on top | €3,600 |
| Total purchase taxes | €24,000 | €33,600 |
| Share of price | 8% | 11.2% |
A new build is not automatically more expensive overall, since new homes are often priced differently from resales. Compare the all-in cost, not the headline price.
Costs that are not taxes
Taxes are only part of the extra spend. The Local estimated that on a €200,000 property the extra fees come to €20,000 to €24,000, taking the total to about €220,000. A Costa del Sol buyer’s guide puts taxes and fees at roughly 10% to 15% of the price and separates tax from notary, registry, legal, mortgage and gestoría charges.
A practical checklist of the non-tax costs:
- Notary fees for the deed of sale.
- Land registry fees to record you as the owner.
- A lawyer, if you use one, and a gestor to file the paperwork.
- Valuation and mortgage arrangement costs if you borrow.
- Your NIE (foreigner’s identification number), which you need before any purchase.
Our guide to Spanish property deposits and costs goes through how much cash you need on the day of signing.
When and how you pay
ITP and AJD are self-assessed on Form 600. Where the central Tax Agency is the competent body, the Tax Agency says Form 600 must be filed and any tax paid within 30 working days of the act or contract, through a collaborating bank. In most regions the filing goes to the regional authority, and the details can differ, so ask your gestor which office handles your property.
In practice, the notary and gestor usually coordinate the filing, and the registry will not record your ownership without proof of payment. Keep the receipt with your deed.
If the seller is a non-resident
There is a buyer-side obligation people forget. When you buy from a non-resident seller, the Tax Agency’s Modelo 211 instructions say that purchasers, resident or not, must withhold and pay the legally established percentage of the agreed price. It is an advance payment on the seller’s own tax, not an extra cost to you, but if you skip it you carry the liability. Your lawyer or gestor should file Modelo 211 for you.
Taxes after you own the property
Purchase taxes are one-off, but ownership brings recurring ones. They include the annual municipal property tax (IBI), and non-residents can face tax on imputed income for a home they do not rent out. If you own significant assets in Spain, wealth tax may be relevant too, and we explain how it interacts with borrowing in our guide to Spanish wealth tax and mortgages.
A note for American buyers
Spain taxes income from property located in Spain, while the US taxes its citizens on worldwide income. A cross-border tax guide notes that the foreign tax credit is often used to reduce double taxation, for example when the property is later sold. Purchase taxes themselves are a Spanish matter, so the practical step is to speak to a tax adviser who handles both systems before you sell US investments to fund the purchase.
Our perspective
Most buyers who come to us have built their budget around the price on the listing and a rough 10% for costs. That is a sound starting point. The surprises come from the details: a region that charges more than expected, a reference value above the agreed price, or a cash requirement that the mortgage does not cover.
A Spanish bank lends a percentage of the price or valuation, and non-residents typically need to fund the rest, plus all taxes and fees, from their own money. That is why we ask for the full picture at the start: price, region, property type and the cash you will have on signing day. We would rather tell you early that a purchase needs more savings than let you discover it after you have paid a reservation deposit.
We work with several Spanish banks that lend to international buyers, so the financing side is compared rather than limited to one lender. Taxes are the part you cannot negotiate, which makes the financing the place where good advice saves you the most.
— Mirelle Leguia
Plan the financing alongside the taxes
If you are borrowing, work out the numbers together. Our mortgage calculator lets you test different loan amounts, and the non-resident mortgage guide explains what banks expect from international applicants.
We start with a free assessment and quote. If you go ahead, there is a one-off sign-up fee of €795, which is refundable if we cannot secure pre-approval, and a success fee of 0.70% on a successfully arranged mortgage. Our average pre-approval timeframe is 14 days, and you receive it in writing. See the full terms on our fees page and what we arrange on our mortgages page.
If you already know your region, we also have pages for buyers in Madrid, Murcia and the Valencian Community.
How to budget in five steps
- Identify the property type: resale or first delivery from a developer.
- Find the regional ITP rate, or the VAT and AJD rates for a new build, from the regional tax authority or your gestor.
- Ask for the cadastral reference value and check it against the price.
- Add notary, registry, gestor, lawyer and valuation costs.
- Confirm how much a bank will lend, so you know the cash you need on the day of signing.
FAQ
How much tax do you pay to buy a house in Spain?
For most buyers, taxes and fees together come to roughly 10% to 12% of the price. Resales pay regional ITP, while new builds pay 10% VAT plus AJD. The exact figure depends on the region and the property type.
Do non-residents pay more purchase tax than residents?
Purchase taxes such as ITP, VAT and AJD are tied to the property and its region, not the buyer’s residency. Some regions offer reduced rates based on the buyer’s circumstances, such as age or family situation, so check the conditions in the region you are buying in.
Who pays the taxes, the buyer or the seller?
The buyer pays ITP, VAT and AJD on a purchase. The seller has their own obligations, such as capital gains tax. If the seller is a non-resident, you as the buyer must withhold part of the price and pay it to the Tax Agency on their behalf.
When do I have to pay ITP?
Where the central Tax Agency is competent, you have 30 working days from the contract or deed to file Form 600 and pay. In practice your notary or gestor usually arranges this soon after signing, because the registry needs proof of payment.
Can I finance the taxes with a mortgage?
Banks generally lend against the property’s price or valuation, not the taxes and fees. Non-resident buyers should plan to cover the deposit, taxes and costs from their own funds. Our eligibility guide on qualifying as a non-resident covers the typical limits.
Sources
- Spain’s public administration portal: taxes on buying and selling property
- Spain’s public administration portal (English): taxes on buying and selling property
- Agencia Tributaria: buying a home, do I pay ITP?
- Agencia Tributaria: ITP and AJD
- Agencia Tributaria: Form 600
- Agencia Tributaria: Modelo 211
- Agencia Tributaria: Modelo 211 instructions
- The Local: all the extra costs of buying a home in Spain
- ING: ITP, AJD and IVA on home purchases
- SpainFiscal: buying property in Spain, taxes and costs 2026
- Realista: taxes and fees when buying in Spain
- US and Spanish tax implications of buying Spanish property
Recommended
- Spanish Property Deposits & Costs
- Spanish Wealth Tax & Mortgages
- Spanish Mortgage Process Timeline
- Non-Resident Mortgage Guide 2026
This article was produced with AI assistance and reviewed for accuracy by Mirelle Leguia, and expert in the Spanish mortgage space.