Property Purchase Taxes in Spain — 2025 Overview

Updated: October 2025

Buying property in Spain? Taxes vary sharply from one autonomous community to another — and those differences can add up fast. Understanding them early can save thousands and help you choose the right region for your investment.

At CostaLuz Lawyers, we’ve simplified the essentials for residents and non-residents alike.

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Main Taxes When Buying Property in Spain

1. Transfer Tax (ITP) – Paid on resale properties.
Ranges from 6% to 10% depending on the region (some lower, like Madrid or the Canaries). Reduced rates often exist for first-time buyers, large families, or disabled buyers — but usually only for residents.

2. VAT (IVA) or IGIC (Canaries) – Paid on new builds.
Normally 10% (mainland) or 7% (Canaries).

3. Stamp Duty (AJD) – On notarial deeds and mortgages.
Ranges from 0.5% to 1.5%, depending on the region.

4. Property Tax (IBI) – Annual local tax based on cadastral value.
Usually 0.4%–1.1%, set by the municipality.

5. Wealth & Solidarity Taxes – Apply to high-value assets.
Thresholds and reliefs vary; some regions (e.g., Madrid) grant full relief, while others (e.g., Valencia) apply full rates.

6. Capital Gains & Plusvalía – Payable on resale by the seller.
Both depend on value increase and length of ownership.

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Regional Highlights (2025 snapshot)

• Andalusia: Flat 7% ITP; AJD 1.2%. High-value properties face progressive rates again from 2025.
• Madrid: 6% ITP, 0.75% AJD — among Spain’s lowest. No Wealth Tax for residents, but non-residents still pay.
• Catalonia: High 10% ITP; 1.5% AJD. Low Wealth Tax threshold (€500,000).
• Canary Islands: 6.5% ITP, 7% IGIC for new builds — lowest indirect taxes in Spain.
• Balearic Islands: Progressive ITP (8%–11%) depending on price bracket.
• Basque Country & Navarre: Distinct, more favorable regimes (e.g., AJD 0.5%).

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Why It Matters for Non-Residents

Non-residents pay the same nominal rates, but rarely qualify for local reductions. They must also account for:

• Fiscal representation for capital gains and local filings.
• Wealth/Solidarity Tax on Spanish assets only.
• Different legal documentation (e.g., NIE, bank compliance, currency declaration).

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Smart Property Planning = Lower Taxes

An early review lets us calculate:

• The true tax cost in your target region.
• Available regional incentives or reliefs.
• The best ownership structure (individual, joint, or company).
• How to avoid double taxation under your home country treaty.

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Next Step — Get Your Personal Tax Analysis

Let us send you a region-by-region comparison tailored to your situation (resident/non-resident, property type, budget).
Email: web@costaluzlawyers.es
Tel: +34 919 499 342

A short chat now could save you long-term tax pain later.

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Related Property Buying Guides

• Buying Property in Spain — Complete Legal Guide (2026)
• Costs of Buying Property in Spain (2026)
• Transfer Tax Calculator
• Buying Off-Plan Property in Spain
• Buy Property with an Independent Lawyer
• Rental Law in Spain

For a complete overview of taxation in Spain, see our Your Guide to Spanish Tax.

Frequently asked questions

Which taxes do I pay when buying property in Spain?

On a resale, transfer tax (ITP). On a new build, VAT (IVA) — or IGIC in the Canaries — instead. Both come with stamp duty (AJD) on the notarial deed and any mortgage. After the purchase, IBI is payable annually.

How much is transfer tax (ITP)?

This guide puts it at 6% to 10% depending on the region, with some lower, such as Madrid or the Canaries. Reduced rates often exist for first-time buyers, large families or disabled buyers, but usually only for residents.

What do I pay on a new build instead?

Normally 10% VAT on the mainland, or 7% IGIC in the Canaries, plus stamp duty (AJD) of 0.5% to 1.5% depending on the region.

Do non-residents pay more?

Non-residents pay the same nominal rates, but they rarely qualify for the local reductions, because those generally require residency.

Which taxes continue after I buy?

IBI, the annual local tax based on cadastral value, usually 0.4% to 1.1% and set by the municipality. High-value assets may also attract wealth and solidarity taxes, where thresholds and reliefs vary sharply by region — this guide notes Madrid granting full relief while Valencia applies full rates.

We provide independent legal advice on Spanish law for international clients, with personalised quote pricing and no percentage of recovery. For a fixed-price quote on your specific matter, email marialuisa@costaluzlawyers.es.

Related guide: our complete legal guide to buying property in Spain.