What taxes do you pay when buying a home in Spain?

Work out which tax applies

• IVA (VAT). A new home bought from the developer usually carries 10% IVA. A lower rate applies to certain categories of subsidised housing. In the Canary Islands, IGIC replaces IVA.
• AJD (stamp duty). This generally applies to the deed when you buy a new home. The region sets its rate, so ask for both IVA and AJD when you get a cost estimate.
• ITP (transfer tax). This is what the buyer normally pays on a resale. The rate is set by the region where the property is located.

How resale rates vary

Madrid’s general rate is 6%, Andalusia’s is 7%, and the Canary Islands’ is 6.5%. In the Valencian Community, the general rate has been 9% since 1 June 2026. If the property value exceeds €1 million, the applicable rate is 11% on the full taxable amount.

Catalonia’s general scale starts at 10% on the first €600,000, then applies 11% from €600,000 to €900,000, 12% from €900,000 to €1.5 million and 13% above €1.5 million. The Balearic Islands also use a scale that starts at 8%. Some buyers or properties qualify for special rates, including qualifying main-home purchases or purchases by buyers who meet the region’s definition of a large property holder.

Before you budget

Ask your lawyer to confirm which rate and taxable value apply to your property. It’s worth getting the amount in writing before signing a deposit agreement. If the estimate includes plusvalía, the municipal tax on an increase in urban land value, ask who will deal with it. If the seller is a non-resident individual, the buyer is the substitute taxpayer for this tax under Article 106.2 when it applies.

You can use the published rates to start your own estimate. TND can make the next step easier by helping you gather the details your lawyer needs to confirm the tax for the specific property.