Stamp duty and VAT on a new build in Spain (2026): IVA and AJD by region
A new home bought from its developer pays 10% VAT (IVA) on the price and stamp duty (AJD) on the deed, instead of transfer tax. The general AJD rate is set by each region: 0.75% in Madrid above €180,000, 1.5% in Catalonia, 1.4% in the Valencian Community and 1.2% in Andalusia, with lower rates for main homes and some buyers.
Key facts
- VAT on a new home is 10%, including up to two garage spaces sold with it (Ley 37/1992, article 91).
- The buyer pays AJD stamp duty on the deed (Real Decreto Legislativo 1/1993, article 29).
- On an off-plan home, VAT is due on each stage payment when it is paid (Ley 37/1992, article 75).
- In the Valencian Community, the deed of any main home pays 0.1% AJD, a rate in force since 2019.
- In Catalonia, buyers aged 35 or under with income up to €36,000 pay no AJD on their main home.
- Madrid's AJD is banded by value: 0.4% up to €120,000, 0.5% up to €180,000 and 0.75% above.
Which taxes does a new build pay in Spain?
Two: VAT (IVA, Impuesto sobre el Valor Añadido) on the price, and stamp duty (AJD, actos jurídicos documentados) on the notarial deed. It does not pay transfer tax (ITP).
The split comes from the VAT law. The first sale of a finished home by its developer carries VAT, while “las segundas y ulteriores entregas de edificaciones”, second and later sales, are exempt (Ley 37/1992, article 20.Uno.22). A sale that carries VAT is outside ITP (Real Decreto Legislativo 1/1993, article 7.5), and its deed pays AJD instead (article 31.2). So a home bought from the developer pays VAT plus AJD, and the same home sold on later pays ITP, explained in the transfer tax guide.
For a €300,000 new build bought as a second home, in each region:
| Place | Buyer | Taxes | Fees, typical | Total on top | Share of price |
|---|---|---|---|---|---|
| Spain, Madrid | New build, second home, price €300,000 | €32,250 | €4,148.54 | €36,398.54€34,598.54 to €38,498.54 | 12.13% |
| Spain, Catalonia | New build, price €300,000 | €34,500 | €4,148.54 | €38,648.54€36,848.54 to €40,748.54 | 12.88% |
| Spain, Valencian Community | New build, second home, price €300,000 | €34,200 | €4,148.54 | €38,348.54€36,548.54 to €40,448.54 | 12.78% |
| Spain, Andalusia | New build, second home, price €300,000 | €33,600 | €4,148.54 | €37,748.54€35,948.54 to €39,848.54 | 12.58% |
How much VAT is charged on a new home?
10% in all four regions. The reduced VAT rate covers “edificios o partes de los mismos aptos para su utilización como viviendas”, including up to two garage spaces and annexes sold with the home (Ley 37/1992, article 91.Uno.1.7). Business premises sold with the home are not annexes and pay the general rate.
VAT is charged on the price, not on the cadastral reference value. On a €300,000 new build it is €30,000.
A lower rate of 4% applies to officially protected homes of the special regime (protección oficial de régimen especial) sold by the developer (article 91.Dos). The calculator does not cover protected housing. The Canary Islands have IGIC instead of VAT and are not covered either.
When is VAT paid on an off-plan home?
On each payment. The VAT law says that with payments made before delivery “el impuesto se devengará en el momento del cobro total o parcial del precio”, for the amounts actually received (article 75.Dos). The developer adds VAT to each stage payment and pays it to the Agencia Tributaria. The buyer does not file a VAT return.
AJD is different: it is due on the deed, so it is paid once, after signing at the notary.
How much is stamp duty (AJD) on a new build?
It depends on the region, the value, and sometimes on the buyer. The buyer pays it: “Será sujeto pasivo el adquirente del bien o derecho” (Real Decreto Legislativo 1/1993, article 29). Like ITP, it is charged on the higher of the price and the reference value (article 30.1). If a region set no rate, the national default would be 0.50% (article 31.2); all four regions covered here set their own.
| Region | General AJD rate | Lower rates | Law |
|---|---|---|---|
| Madrid | 0.4% to 0.75%, banded by value (see the table below) | 10% off the bill for a main home up to €250,000; 95% off for large families | Decreto Legislativo 1/2010, articles 32, 38 bis, 38 ter |
| Catalonia | 1.5% | Nothing to pay for buyers aged 35 or under with income up to €36,000, on their main home | Decret Legislatiu 1/2024, articles 642-1, 642-6 |
| Valencian Community | 1.4% (1.5% before 1 June 2026) | 0.1% on the deed of any main home | Ley 13/1997, article 14 |
| Andalusia | 1.2% | 1% for a main home up to €150,000; 0.3% if the buyer is under 35; 0.1% for disability or large families up to €250,000 | Ley 5/2021, articles 49, 50 |
Madrid charges AJD on a new home bought by an individual in three bands by value, with the whole value taxed at the rate of its band and a correction at each band limit so the tax never jumps by more than the excess (articles 32 and 37). The bands apply whether or not the home is the buyer’s main home:
Stamp duty (AJD) on a new build, 0.4% to 0.75% by value
The whole of the taxable value (the higher of the price and the official value) is taxed at the rate of the band it falls in, just above a band edge, never more than the tax at the edge plus the amount over it.
| Value | Rate on the whole value |
|---|---|
| up to €120,000 | 0.4% |
| €120,000 to €180,000 | 0.5% |
| over €180,000 | 0.75% |
Applies when it is a new build; except when it is for your main home and the taxable value is €250,000 or less.
0.4% up to €120,000, 0.5% up to €180,000 and 0.75% above, on the whole value. Protected housing up to 90 m² pays 0.2% and large families get 95% off (not modeled).
A main home worth up to €250,000 gets 10% off that bill (article 38 bis):
Stamp duty (AJD) on a new build, main home, with the 10% rebate
The whole of the taxable value (the higher of the price and the official value) is taxed at the rate of the band it falls in, just above a band edge, never more than the tax at the edge plus the amount over it, then multiplied by 0.9.
| Value | Rate on the whole value |
|---|---|
| up to €120,000 | 0.4% |
| €120,000 to €180,000 | 0.5% |
| over €180,000 | 0.75% |
Applies when it is a new build; it is for your main home; the taxable value is €250,000 or less.
Main home up to €250,000: 10% off the stamp duty (art. 38 bis). You must live there within 12 months and keep it 3 years. Buyers under 35 in a town of fewer than 2,500 people get 100% off (not modeled).
Does it matter whether the new build is the buyer’s main home?
In Valencia and Andalusia it does, and by a lot. In the Valencian Community the deed of a main home pays 0.1% (“adquisiciones de vivienda habitual”, Ley 13/1997, article 14.Uno.a), with no age, price or income condition. That rate has applied since 1 January 2019; it did not change with the June 2026 cuts. For a €300,000 new build:
| Place | Buyer | Taxes | Fees, typical | Total on top | Share of price |
|---|---|---|---|---|---|
| Spain, Valencian Community | New build, main home, price €300,000 | €30,300 | €4,148.54 | €34,448.54€32,648.54 to €36,548.54 | 11.48% |
| Spain, Andalusia | New build, main home, price €300,000 | €33,600 | €4,148.54 | €37,748.54€35,948.54 to €39,848.54 | 12.58% |
| Place | Buyer | Taxes | Fees, typical | Total on top | Share of price |
|---|---|---|---|---|---|
| Spain, Valencian Community | New build, second home, price €300,000 | €34,200 | €4,148.54 | €38,348.54€36,548.54 to €40,448.54 | 12.78% |
| Spain, Andalusia | New build, second home, price €300,000 | €33,600 | €4,148.54 | €37,748.54€35,948.54 to €39,848.54 | 12.58% |
A main home, for these reductions, is one the buyer moves into within 12 months and lives in for at least three years. The reduced rates guide has the conditions region by region.
What does a new build cost in total?
Here is a €300,000 new build bought as a main home in each region, with the notary, registry and lawyer estimates added:
| Line | Kind | Amount | Estimate range | Share of price |
|---|---|---|---|---|
| VAT (IVA) on a new build, 10% | Tax | €30,000 | 10.00% | |
| Stamp duty (AJD) on a new build, 0.4% to 0.75% by value | Tax | €2,250 | 0.75% | |
| Lawyer or gestoría (market rate) | Fee, estimate | €3,000 | €1,500 to €4,500 | 1.00% |
| Notary | Fee, estimate | €900 | €600 to €1,500 | 0.30% |
| Land registry (official fee scale) | Fee | €248.54 | 0.08% | |
| Taxes | €32,250 | 10.75% | ||
| Fees, typical | €4,148.54 | €2,348.54 to €6,248.54 | 1.38% | |
| Total on top of the price | €36,398.54 | €34,598.54 to €38,498.54 | 12.13% |
| Line | Kind | Amount | Estimate range | Share of price |
|---|---|---|---|---|
| VAT (IVA) on a new build, 10% | Tax | €30,000 | 10.00% | |
| Stamp duty (AJD) on a new build, 1.5% | Tax | €4,500 | 1.50% | |
| Lawyer or gestoría (market rate) | Fee, estimate | €3,000 | €1,500 to €4,500 | 1.00% |
| Notary | Fee, estimate | €900 | €600 to €1,500 | 0.30% |
| Land registry (official fee scale) | Fee | €248.54 | 0.08% | |
| Taxes | €34,500 | 11.50% | ||
| Fees, typical | €4,148.54 | €2,348.54 to €6,248.54 | 1.38% | |
| Total on top of the price | €38,648.54 | €36,848.54 to €40,748.54 | 12.88% |
| Line | Kind | Amount | Estimate range | Share of price |
|---|---|---|---|---|
| VAT (IVA) on a new build, 10% | Tax | €30,000 | 10.00% | |
| Stamp duty (AJD) on a new build, main home, 0.1% | Tax | €300 | 0.10% | |
| Lawyer or gestoría (market rate) | Fee, estimate | €3,000 | €1,500 to €4,500 | 1.00% |
| Notary | Fee, estimate | €900 | €600 to €1,500 | 0.30% |
| Land registry (official fee scale) | Fee | €248.54 | 0.08% | |
| Taxes | €30,300 | 10.10% | ||
| Fees, typical | €4,148.54 | €2,348.54 to €6,248.54 | 1.38% | |
| Total on top of the price | €34,448.54 | €32,648.54 to €36,548.54 | 11.48% |
| Line | Kind | Amount | Estimate range | Share of price |
|---|---|---|---|---|
| VAT (IVA) on a new build, 10% | Tax | €30,000 | 10.00% | |
| Stamp duty (AJD) on a new build, 1.2% | Tax | €3,600 | 1.20% | |
| Lawyer or gestoría (market rate) | Fee, estimate | €3,000 | €1,500 to €4,500 | 1.00% |
| Notary | Fee, estimate | €900 | €600 to €1,500 | 0.30% |
| Land registry (official fee scale) | Fee | €248.54 | 0.08% | |
| Taxes | €33,600 | 11.20% | ||
| Fees, typical | €4,148.54 | €2,348.54 to €6,248.54 | 1.38% | |
| Total on top of the price | €37,748.54 | €35,948.54 to €39,848.54 | 12.58% |
Catalonia’s table does not apply the young buyer’s exemption, because it depends on the buyer’s income. For a qualifying buyer aged 35 or under, the AJD line would be nil.
How is AJD paid?
The same way as ITP: the buyer files form 600 (modelo 600) with the region’s tax agency and pays it, within 30 working days of the deed in Madrid, one month in Catalonia and the Valencian Community, and two months in Andalusia. The transfer tax guide has the table and the legal references.
What this guide does not cover
- Homes bought from a developer by a business that waives the VAT exemption, which pays a higher AJD rate.
- Protected housing (VPO), the 4% VAT rate, and the Canary Islands’ IGIC.
- Self-build homes, plots of land and renovation work.
- AJD on the mortgage deed, which the lender pays.
Questions people ask
Is there stamp duty on a new build in Spain?
Yes. A new home bought from the developer pays AJD (actos jurídicos documentados), the tax on the notarial deed, as well as 10% VAT. The rate is set by the region, between 0.1% and 1.5% in the four regions covered here.
Do you pay ITP on a new build in Spain?
No. The first sale of a finished home by its developer is subject to VAT, and the law takes VAT sales out of ITP. Second and later sales of the same home are exempt from VAT and pay ITP instead.
When is VAT paid on an off-plan property in Spain?
On each payment. The VAT law says that with advance payments the tax falls due when each part of the price is received. The developer adds VAT to every stage payment and pays it to the tax agency.
Do foreigners pay stamp duty in Spain?
Yes, at the same rates as residents. None of the four regions sets a different VAT or AJD rate for non-residents or by nationality.
Who pays AJD on the mortgage deed?
The lender. Since 10 November 2018 the bank is the taxpayer for AJD on a mortgage deed (Real Decreto Legislativo 1/1993, article 29). The buyer pays AJD on the purchase deed only.
Sources
- Ley 37/1992 del Impuesto sobre el Valor Añadido (articles 20.Uno.22, 75 and 91)BOE (Agencia Estatal Boletín Oficial del Estado)
- Decreto Legislativo 1/2010 de la Comunidad de Madrid (articles 32, 37, 38 bis and 38 ter)BOE (consolidated copy of the BOCM text)
- Decret Legislatiu 1/2024, Codi tributari de Catalunya (articles 642-1 and 642-6)BOE (consolidated copy of the DOGC text)
- Ley 13/1997 de la Generalitat Valenciana (article 14)BOE (consolidated copy of the DOGV text)
- Ley 5/2021 de Tributos Cedidos de Andalucía (articles 49 and 50)BOE (consolidated copy of the BOJA text)
Behind the figures
Every amount on this page is worked out by the engine from rule files that cite these pages.
- Agència Tributària de Catalunya: ITP ratesOfficial source