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Guide: Housing

New Build vs Resale Property Taxes in Spain: VAT, ITP, and AJD

Compare new build vs. resale property taxes (VAT, ITP, AJD) in Spain for expats. This 2026 guide covers transaction costs, regional rates, and actionable steps.

Updated February 12, 2026
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Spain can offer a calmer and more sustainable daily life, but relocation decisions get expensive when this stage is handled late. This guide covers New Build vs Resale Property Taxes in Spain: VAT, ITP, and AJD so you can compare true transaction cost before choosing property type.

Last reviewed on February 12, 2026. Requirements and timelines can change by province, office, and consulate. Confirm current rules with official sources before filing or paying fees.

Clear promise

You will leave this guide with a practical execution plan, a document checklist, and a realistic timeline you can apply this week.

Quick reality check

This path is usually a good fit if:

  • You want clear legal terms before transferring money or signing.
  • You can compare multiple options instead of taking first available inventory.

This path is harder if:

  • You need immediate housing in a tight market.
  • You are negotiating remotely with limited local verification.

Decision questions to answer first

  • Are you comparing equivalent properties after tax and fee differences?
  • How do regional rates change your budget?
  • Which purchase route has lower total risk for your timeline?

Step-by-step main guidance

Understanding the tax implications is crucial for buying property in Spain. Here's a breakdown of the main taxes:

  • VAT (IVA - Impuesto sobre el Valor Añadido): Value Added Tax, primarily applied to new build properties.
  • ITP (Impuesto sobre Transmisiones Patrimoniales): Property Transfer Tax, applied to resale properties.
  • AJD (Impuesto sobre Actos Jurídicos Documentados): Stamp Duty, applied to both new builds and resales, though its application can differ.

1. Understand Regional Tax Differences and Eligibility

Property taxes in Spain, particularly ITP and AJD, are managed at the regional level by each Autonomous Community. This means rates can vary significantly depending on where you buy. Research the specific rates for VAT, ITP, and AJD in your target region. Determine if you qualify for any tax reductions or exemptions, which might be available for first-time buyers, young buyers, or specific property types.

2. Evaluate VAT vs. ITP Implications for Each Property Type

For new build properties, you will typically pay VAT on the purchase price. For resale properties, you will pay ITP. The percentage rates for these two taxes can differ substantially, impacting your total upfront cost. Calculate the estimated tax for both a new build and a resale property of similar value to understand the financial difference.

3. Calculate Total Transaction Costs Including AJD

Beyond VAT or ITP, you'll also pay AJD (Stamp Duty). While generally lower than VAT or ITP, it adds to the overall cost. AJD applies to official notarial and registry documents, and its rate varies by region. Ensure you factor in notary fees, property registration fees, and legal costs into your budget, as these are additional to the purchase price and primary taxes.

4. Secure Financing and Prepare for Tax Payments

Before making an offer, secure your financing and understand how you will cover all associated costs, including taxes. Spanish banks may require a significant down payment, especially for non-residents. Ensure you have access to funds in Spain for tax payments, which are usually due shortly after signing the public deed of sale.

5. Finalize Purchase and Post-Closing Tax Filings

Once the purchase is complete and you have signed the public deed, you must file and pay the applicable property taxes (VAT/ITP and AJD) within the stipulated timeframe, typically 30 days. This involves submitting the necessary forms to the regional tax authorities. Professional legal and tax advice is highly recommended for this stage to ensure compliance.

Costs, timing, and required documents

Use these ranges for planning, not guarantees:

  • Search and filtering: 1 to 4 weeks in many cities.
  • Contract and payment setup: 3 to 14 days.
  • Move-in or closing execution: 1 to 6 weeks depending on complexity.

Core documents to prepare:

  • Identity and legal status documents.
  • Draft contract with key clauses highlighted.
  • Payment receipts and communication record.
  • Property or utility reference documents.
  • Move-in or closing checklist evidence.

Common mistakes and how to avoid them

  • Paying funds before identity and contract checks are complete.
  • Relying on verbal terms not reflected in writing.
  • Skipping final evidence capture at handover/closing.

Final action plan: what to do this week

  1. Set budget and legal constraints in writing.
  2. Use a standardized contract-review checklist.
  3. Store every payment and message in one folder.
  4. Plan a backup option in case terms fail.

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