Taxes When Buying

Property in Spain

Buying property in another country is always fraught with complexities. One of the most significant factors to consider when purchasing residential or commercial real estate in Spain is taxes. Understanding the details will help you plan your expenses and avoid unpleasant surprises. In this article, we’ll cover the main taxes you will need to pay when buying property in Spain. Please note that the rates and taxes are specific to the Comunidad Valenciana region, including the provinces of Alicante, Valencia, and Castellón.

1. Property Transfer Tax (Impuesto de Transmisiones Patrimoniales, ITP)

This tax is paid by the buyer when purchasing secondary housing. The ITP rate varies depending on the autonomous community, and in the Comunidad Valenciana, the basic rate is 10% of the cadastral value of the property or the transaction price, whichever is higher.

Taxes When Buying Property in Spain

2. Value Added Tax (IVA)

If you’re buying new property directly from a developer, you will have to pay VAT (IVA). In Spain, the rate for this tax is 10% for residential properties and 21% for commercial properties. Note that ITP and IVA are mutually exclusive—you pay either one or the other, but never both together.

3. Stamp Duty (Actos Jurídicos Documentados, AJD)

This tax is levied when buying new property and varies depending on the region. In the Comunidad Valenciana, the standard AJD rate is 1.5% for new builds. But there’s good news: you can be exempt from this tax if the property you’re buying will be your primary residence. This tax is also applicable when taking out a mortgage, including on secondary properties.



If you're buying property without a mortgage in Spain, specifically in the province of Alicante, on the secondary market. Or when buying new builds, if you or your lawyers can prove it will be your primary residence.


When buying a new property, if the purchased property is not your primary residence.


Buying property in Spain is not just an opportunity to own a home on the sunny coast but also a responsibility under Spanish tax laws. There are also taxes levied during property ownership in Spain, which we will cover in our next article.

Not sure about the details? Contact Granfield Estate. Consultations for our clients are always free. Our goal is to help you make the right choice and avoid unnecessary expenses.