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Taxes on the purchase of real estate in Spain

Calculators

When buying or transferring ownership of property in Spain, there are several taxes and fees that buyers need to consider.

Real estate cost
Region
New Property
Young Buyer
Large Family
Property Transfer Tax (ITP)
M-SQeu
€16,800 
Tax on Documented Legal Acts (AJD)
M-SQeu
- 
Value Added Tax (VAT)
M-SQeu
- 

Property Transfer Tax (ITP)
This tax applies to the purchase of used properties. The ITP rate varies depending on the autonomous community where the property is located. For example:
Andalusia: 7%
Madrid: 6%
Catalonia: 10-11%
Andalusia: 7% for properties under €150,000; 8% for properties between €150,000 and €300,000; 9% for properties between €300,000 and €500,000; 10% for properties over €500,000.
Valencian Community: 10%
Basque Country: 4%
Canary Islands: 6.5%
Galicia: 10%
Balearic Islands: 8% to 11% (progressive rate based on the property value)
Aragon: 8%
Asturias: 8% to 10% (progressive rate based on the property value)
Cantabria: 10%
Castilla-La Mancha: 9%
Castilla y León: 8%
Extremadura: 9%
La Rioja: 7%
Murcia: 8%
Navarre: 6%
Ceuta and Melilla: 6%

Furthermore, there are possible reductions depending on the situation, such as for large families or young buyers​ (Asesoría Orihuela Costa)​.

Value Added Tax (VAT)
For new properties, VAT must be paid instead of ITP. The general rate is 10% of the purchase value​ (Asesoría Orihuela Costa)​.

Tax on Documented Legal Acts (AJD)
This tax applies to both new and used properties, when the purchase is registered with a notary. AJD fees also vary depending on the autonomous community:
Madrid: 0.75%
Andalusia: 1.20%
Catalonia: 1.50%​ (Asesoría Orihuela Costa)​.

Additional Costs
In addition to taxes, there are other costs associated with purchasing property in Spain:
Notary fees: Between 600 and 875 euros, depending on the value of the property.
Property Registration: From 600 to 1,000 euros, depending on the location and characteristics of the property.
Valuation: Around 300 euros, if you are requesting financing.

These are the main taxes and costs involved in purchasing or transferring property in Spain. For more detailed information, it is always recommended to consult a real estate lawyer or a specialized manager.

What is Property Transfer Tax (ITP) in Spain?
The Property Transfer Tax (ITP) is a tax applied to the purchase of used properties in Spain. The rate varies by autonomous community, ranging from 4% in the Basque Country to up to 11% in the Balearic Islands, and can be progressive based on the property's value.
How is Property Transfer Tax (ITP) calculated?
ITP is calculated as a percentage of the purchase price of the property. For example, in Andalusia, the rates are 7% for properties under €150,000, 8% for properties between €150,000 and €300,000, 9% for properties between €300,000 and €500,000, and 10% for properties over €500,000.
Do I have to pay Value Added Tax (VAT) on new properties?
Yes, VAT is applicable on new properties in Spain. The general VAT rate is 10% of the purchase value of the property.
What is the Tax on Documented Legal Acts (AJD) and how much does it cost?
The Tax on Documented Legal Acts (AJD) is a tax applied when registering the property purchase with a notary. The AJD rate varies by autonomous community, with rates ranging from 0.75% in Madrid to 1.50% in Catalonia.
What are the notary fees when buying property in Spain?
Notary fees in Spain typically range from 600 to 875 euros, depending on the value of the property and the complexity of the transaction.
How much does property registration cost?
Property registration fees generally range from 600 to 1,000 euros. The exact cost depends on the location and characteristics of the property.
Is there a valuation fee when buying property in Spain?
Yes, if you are requesting financing, a property valuation fee of around 300 euros is usually required.
Are there any reductions in taxes for young buyers or large families?
Yes, there may be reductions in Property Transfer Tax (ITP) for young buyers or large families, depending on the autonomous community and specific regulations in place.
What are some additional costs associated with buying property in Spain?
In addition to taxes, buyers should budget for notary fees, property registration fees, and possibly a valuation fee if financing. These additional costs can range from approximately 1,200 to 2,200 euros, depending on the property and transaction details.
Where can I find detailed information about property taxes and fees in Spain?
For detailed information, it is recommended to consult a real estate lawyer or a specialized manager who can provide guidance based on your specific situation and location in Spain.
Who is responsible for paying Property Transfer Tax (ITP) in Spain?
The buyer of the property is responsible for paying the Property Transfer Tax (ITP) when purchasing a used property. This tax must be paid within 30 days of the property transfer.
Who pays the Value Added Tax (VAT) on new properties?
The buyer is responsible for paying the Value Added Tax (VAT) on new properties. The VAT is calculated based on the purchase price of the property and must be paid to the tax authorities.
Who covers the Tax on Documented Legal Acts (AJD) costs?
The buyer typically covers the Tax on Documented Legal Acts (AJD) costs. This tax applies to both new and used properties and is due when the purchase is formalized through a notary.
Are there any tax advantages for property investors in Spain?
Property investors in Spain may benefit from certain tax advantages, such as deductions on mortgage interest or property maintenance costs. However, these benefits can vary depending on the investor's specific situation and whether the property is rented out or used for personal purposes.
Do investors need to pay additional taxes when renting out their property?
Yes, property investors who rent out their property must pay income tax on rental income. The rate and applicable deductions depend on whether the property is rented out long-term or short-term, and on the investor's overall income.
What are the tax implications for foreigners buying property in Spain?
Foreign buyers are subject to the same taxes as Spanish residents, including Property Transfer Tax (ITP) for used properties or VAT for new properties, and Tax on Documented Legal Acts (AJD). Additionally, foreign buyers must comply with Spanish tax laws and may need to file annual income tax returns.
Are there any taxes on property sales in Spain?
Yes, when selling a property in Spain, sellers must pay Capital Gains Tax on any profit made from the sale. The tax rate depends on the amount of profit and the length of time the property was owned.
What other costs should buyers consider when purchasing property in Spain?
In addition to taxes, buyers should consider notary fees, property registration fees, valuation fees, and possible legal or administrative fees. These additional costs can add a significant amount to the overall expense of purchasing property.
How can buyers and investors ensure they are compliant with Spanish tax laws?
Buyers and investors should consult with a local real estate lawyer or tax advisor who is familiar with Spanish property laws. This professional can provide guidance on compliance, help navigate the tax system, and ensure all necessary taxes and fees are properly handled.
What should I do if I receive a tax assessment or notice after buying a property?
If you receive a tax assessment or notice after buying a property, it is important to review it carefully and consult with a tax advisor or lawyer to ensure that all taxes have been properly assessed and paid. Address any discrepancies or issues promptly to avoid potential penalties.
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