Buying a new build or a resale in Spain

Start with the tax

• New build. A developer’s first sale of a completed home generally carries 10% VAT (IVA) plus regional stamp duty (AJD). In the Canary Islands, IGIC applies instead of IVA. Ask whether the quoted price already includes the tax.
• Resale. The buyer generally pays transfer tax (ITP) at the rate set by the region. Check the rate for the specific property before comparing offers.

The tax category can depend on the property’s history. If the home was used continuously for two years or more before the sale, the developer’s sale may no longer count as a first sale for VAT. One exception is when the buyer was the person who used it during that period. Check the Spanish tax agency’s first-sale rules with your lawyer.

How the payments work

If you buy while a development is under construction, the contract may set out several payments before you sign the deed. Read the schedule so you know how much is due at each stage. Ask your lawyer what guarantees protect advance payments and which licences or certificates you should see before signing.

On a resale, you’ll usually agree a reservation and deposit, then pay the balance when you sign the deed. Ask your lawyer to check the title and flag any debts or building issues before you commit.

Compare what you’ll pay in total

For each property, put the price, purchase tax and fees on the same page. If you’re buying a new build, add the dates of any staged payments. That gives you both the total cost and a clearer idea of when you’ll need the cash.

You can work through the numbers for each property yourself. If you’re weighing up two homes, TND can help you compare the payment schedules and identify the questions to take to your lawyer before you choose.