Buy a resale home and you pay Transfer Tax (ITP). Buy a new build from a developer and you pay VAT (IVA) plus Stamp Duty (AJD) instead. The difference can change your purchase costs by thousands. Here is exactly which tax applies, the rates, and who pays what and when.
When you buy property in Spain there are two separate purchase-tax regimes, and which one applies depends on one thing: whether the property is being sold for the first time or has been owned before. Get this wrong and your budget can be out by a five-figure sum. A resale (second-hand) property bought from a private seller is subject to ITP — Impuesto sobre Transmisiones Patrimoniales, the regional Transfer Tax. A new-build property bought from a developer — the first ever transfer of that property — is instead subject to IVA (VAT) plus AJD (Actos Jurídicos Documentados, Stamp Duty). It is one or the other: a single transaction never carries both ITP and IVA, and the trigger is "first transfer" versus "subsequent transfer".
Three taxes, two regimes — the foundation for working out your real purchase cost.
Impuesto sobre Transmisiones Patrimoniales. A regional tax on the transfer of a second-hand property between private parties. The rate is set by the autonomous community — typically around 6% to 10% — and it replaces both IVA and AJD on a resale. The tax most buyers of existing homes pay.
Impuesto sobre el Valor Añadido. A national tax on the first sale of a new property by a developer. The reduced 10% rate applies to residential property; 21% applies to land and commercial premises. It is charged on the price and paid to the seller, who accounts for it.
Actos Jurídicos Documentados. A regional stamp duty on notarised, registrable documents. It applies alongside IVA on a new build, and also on a mortgage deed. The rate is set regionally and is usually around 0.5% to 1.5% of the price.
The point that catches buyers out is that AJD does not appear on a resale: there you pay ITP and the transfer tax is done. On a new build you pay IVA and AJD, because VAT — not transfer tax — applies. A new build is never "cheaper on tax" simply for avoiding ITP; you have swapped one regional tax for a national VAT plus a smaller regional stamp duty.
The dividing line is the first transfer of the property. The first time a newly built home is sold by the developer who built it, that sale is a new build: IVA plus AJD. Every sale after that is a "second or later transfer" and falls under ITP. The seller's status matters too — a sale between private individuals is almost always a resale taxed with ITP, whereas a sale by a business acting as a developer points to the IVA regime.
A few situations are genuinely ambiguous, and are where professional advice earns its keep. A property the developer rented out before selling can lose its "new" status and fall back into ITP; an off-plan purchase, a bank's sale of a repossessed development, or a property bought by a company and sold on can each change the analysis. The listing label is not the legal test — whether this is genuinely the first transfer of a completed building by a taxable business is. We check the property's history and the seller's status before you commit.
On a resale, ITP is not automatically calculated on the price you pay. Since 2022 the taxable base is the greater of the declared price and the valor de referencia — a value the Catastro assigns to almost every property each year. If it is higher than what you paid, your ITP is calculated on it. This bites hardest on a bargain, a probate or repossession sale, or a property in poorer condition than the area average. New builds are different: because IVA applies to the actual price, the valor de referencia does not set the base on a developer sale. We check the reference value before completion, model the real ITP, and advise whether it is worth challenging — our valor de referencia guide explains it in full.
Both ITP and AJD are devolved to Spain's autonomous communities, which set their own rates and reliefs — which is why the same purchase price produces a different bill depending on where the property is. ITP rates for residential resales commonly sit in the 6% to 10% band, with several regions using a sliding scale that charges more on the portion of the price above a threshold; AJD on a new build typically runs from around 0.5% to 1.5%. The IVA rate, by contrast, is national — 10% on a new residential home anywhere in mainland Spain — because VAT is a state tax.
So you cannot rely on a single headline percentage you read online. An identical purchase can be taxed quite differently in, say, Andalucía, the Valencian Community and Murcia; the Canary Islands use a different indirect-tax system (IGIC), and the Basque Country and Navarra set their own rules. We apply the actual rates and reliefs of the relevant region to the correct base, because only that combination gives the real number.
Several reduced rates exist, but they are regional and conditional, so each has to be checked against the rules of the specific autonomous community and the buyer's circumstances. The most common categories:
None of these is automatic. Each comes with conditions — value limits, residence requirements, periods you must keep the property — and claiming one incorrectly can see the relief clawed back with interest. We confirm whether a relief is genuinely available and apply it correctly, rather than leaving a saving unclaimed or claimed in error.
Real transactions are rarely as tidy as "one home, one tax". A new build often comes with a garage space and a storeroom (trastero), and the IVA rate can differ between them. Up to two garage spaces transferred with the dwelling generally take the same 10% IVA as the home; additional or separately sold spaces can be taxed at 21%. A storeroom sold as an annex usually follows the home's rate, but a separately titled unit may not — easy to miss in a single "price plus IVA" quote.
Mixed cases multiply from there. A plot of land attracts 21% IVA if the seller is a taxable business, or ITP if it is a private sale; a part-residential, part-commercial property may be split across rates. The thread is that the correct tax depends on the precise nature of the asset and the seller, not the headline description — which is why a clear answer requires looking at the specific deal. Our buying and selling property guide and our due diligence page set out where these issues surface.
ITP versus IVA plus AJD sounds binary but turns on facts a buyer often cannot see from the listing. Is this genuinely the first transfer? Is the seller acting as a developer? Has the property been let out? Does the price sit below the valor de referencia? What is the right rate in this region, and does any relief apply? Each answer moves the tax — sometimes by thousands — and the deadlines run from the moment you complete.
Our job is to remove the guesswork before it costs you. With extensive experience helping expats buy in Spain, our team of bar-registered solicitors and legal specialists confirms which regime applies, calculates the exact tax using the correct base, regional rate and any relief you qualify for, and files the self-assessment on time so there are no surcharges. We do this as part of the conveyancing, alongside the wider cost of buying picture and acting as your independent lawyer for the purchase, and as part of our full property legal services. We explain everything in plain English and quote clearly for the work; extras may apply depending on complexity.
ITP (Transfer Tax) is a regional tax on a resale property sold between private parties, typically around 6% to 10%. IVA (VAT) is a national tax on the first sale of a new property by a developer, at 10% for homes. A purchase carries one or the other, never both — and a new build also pays AJD (Stamp Duty) on top of IVA.
On a new build bought from a developer — the first transfer of the property — you pay IVA (10% for residential) plus AJD (Stamp Duty, around 0.5% to 1.5%), not ITP. ITP only applies to resale purchases, generally between private sellers.
AJD (Actos Jurídicos Documentados) is a regional Stamp Duty on notarised, registrable documents. You pay it on a new-build purchase alongside IVA, and on a mortgage deed. It does not apply to a resale, where ITP is the only transfer tax. The rate is regional, usually about 0.5% to 1.5%.
The test is whether it is the first transfer of a completed property by its developer. A first sale by the developer is a new build (IVA + AJD); any later sale, or a sale between private individuals, is a resale (ITP). Rentals before sale, repossessions and company sales can change this, so the listing label is not the legal test.
ITP is set by each autonomous community, so it varies — residential resale rates commonly sit around 6% to 10%, and several regions use a sliding scale charging more on the part of the price above a threshold. Reduced rates may apply for large families, young buyers, buyers with a disability and protected housing.
For ITP on a resale, the base is the higher of the declared price and the valor de referencia (the Catastro reference value), so you can be taxed above the real price. For IVA on a new build, the base is simply the actual price in the deed.
On a resale, the buyer self-assesses and pays ITP (normally Modelo 600) within 30 business days of the deed. On a new build, IVA is paid to the developer as part of the price, and the buyer self-assesses AJD separately within the same window. The tax filing is the buyer's responsibility, not the seller's.
Many regions offer reduced ITP rates for young buyers, large families, buyers with a disability and habitual-residence purchases, usually with price and income limits. These reliefs are regional, conditional and not automatic, and can be clawed back if conditions are not met, so each needs checking for your region and circumstances.
Up to two garage spaces transferred with a new home generally take the same 10% IVA as the dwelling; additional or separately sold spaces can be taxed at 21%. A storeroom sold as an annex usually follows the home's rate, but a separately titled unit may not — easy to miss in a single "price plus IVA" quote.
Yes. We confirm whether your purchase is ITP or IVA + AJD, calculate the exact tax using the correct base, regional rate and any relief you qualify for, and file the self-assessment within the deadline. We do this as part of the conveyancing for English-speaking clients across Spain and quote clearly for the work.
ITP or IVA plus AJD — the right answer can change your purchase costs by thousands. We confirm the regime, calculate the exact tax for your specific property, and file it on time. In plain English, across Spain.
The information on this page is general guidance only and does not constitute legal or tax advice. The rates and reliefs for Transfer Tax (ITP), VAT (IVA) and Stamp Duty (AJD), the filing deadlines, and the rules determining which regime applies are set out in legislation that changes over time and varies between Spain's autonomous communities and foral territories. Always obtain advice on your specific property and circumstances before acting. Platinum Legal Spain is an independent English-speaking legal practice serving clients across Spain.