Estimate the taxes on buying a home in Spain: transfer tax (ITP) on resale homes, or VAT plus stamp duty (IVA + AJD) on new builds, and the annual property tax (IBI).
Enter the property price to estimate the tax.
Annual property tax (IBI)
Property taxes when buying in Spain
When you buy a home in Spain the main tax depends on whether it is a resale or a new build. Resale (second-hand) homes pay ITP, the transfer tax, which each autonomous community sets and which generally ranges from 6% to 10% of the price. New builds bought from a developer pay 10% VAT (IVA) instead, plus stamp duty (AJD) of roughly 0.5% to 1.5% depending on the region.
The rates shown here are the standard general rates for each community. Many regions offer reduced rates for young buyers, large families, people with disabilities or primary residences below a certain value, so your actual rate may be lower — check your community's current rules or adjust the rate above.
Once you own the property you pay IBI every year. It is a municipal tax based on the cadastral value (valor catastral), which is usually well below the market price, multiplied by a rate the town hall sets, typically between 0.4% and 1.1%. Notary, land registry and legal fees are extra and are not taxes.
Buying in Spain costs 10% above the price, and no mortgage covers it
The purchase price is the part a mortgage funds. Transfer tax, notary, registry and legal fees are not, and on a 250,000 resale they come to about 23,800 — cash you need in hand on completion. Buying new instead of resale changes the tax entirely and adds nearly 9,000 more.
How it works
- Totals the acquisition taxes and fees that sit on top of the agreed price.
- Distinguishes resale from new build, which are taxed under completely different regimes.
- Estimates the annual IBI from cadastral value, which is not the same as market value.
resale: ITP transfer tax (regional, roughly 6–11%) + notary + registry + legal new build: IVA 10% + AJD stamp duty (regional, roughly 0.5–1.5%) + the same fees annual IBI = cadastral value × municipal rate (roughly 0.4–1.1%) cadastral value is typically 50–60% of market value
Worked example
A 250,000 property, resale versus new build, with ITP at 8% and legal fees at 1%.
- resale: ITP 20,000 + notary 800 + registry 500 + legal 2,500 = 23,800
- that is 9.5% on top of the price
- new build: IVA 25,000 + AJD 3,750 + the same 3,800 of fees = 32,550
- 13.0% on top of the price — 8,750 more than resale
You need 23,800 in cash beyond the deposit for a resale, or 32,550 for a new build. Annual IBI on a cadastral value around 137,500 runs roughly 550 to 1,513 depending on the municipality.
Reading the result
- ITP is set by each autonomous community, not nationally. Rates run from about 6% to 11%, so the same purchase can differ by more than 12,000 between regions — check the rate where the property actually is.
- Reduced ITP rates commonly apply to buyers under 35, large families, and buyers with a disability, and can cut the rate by several points. They are claimed rather than granted automatically.
- Cadastral value is not market value and is usually well below it, so IBI looks modest relative to the purchase. It is also revised periodically, and a revision can raise the bill sharply without anything about the property changing.
- Non-resident owners face additional obligations, including an annual imputed income declaration on property not let out. Budget for an adviser if you are buying from abroad — this is not a filing most people complete unaided.
Common questions
- Can I add these costs to the mortgage?
- Generally no. Spanish lenders typically finance a percentage of the lower of purchase price and valuation, and acquisition costs sit outside that. Budget the full 10% or so separately, in cash available on completion day.
- Is new build more expensive than resale?
- On tax, yes — 13.0% against 9.5% in this example, or 8,750 on a 250,000 property. Whether the property itself is better value is a separate question, but the tax difference is fixed and should be in the comparison from the start.