Buying a New-Build in Spain: How IVA and AJD Stamp Duty Work in 2026

Buying a New-Build in Spain: How IVA and AJD Stamp Duty Work in 2026

If you are buying a brand-new home in Spain — directly from a developer, off-plan, or as the first occupant of a finished unit — your tax bill at closing looks very different from a resale purchase. Instead of the regional property transfer tax (ITP), you will pay IVA (Spain's VAT) plus AJD (Actos Jurídicos Documentados, the stamp duty on the notarised deed). Together, these are the two headline taxes that define the closing cost of every new-build in 2026.

This guide walks you through how each tax works, the rates you should expect to see, who pays what, and the practical pitfalls foreign buyers most often run into. Tax law and regional rates change frequently — always confirm current figures with the Agencia Tributaria (AEAT), the relevant Comunidad Autónoma tax office, and an independent Spanish abogado before you sign anything.

What counts as a "new-build" for tax purposes?

For Spanish tax purposes, a property is generally treated as a new-build (obra nueva / primera entrega) when it is being transferred for the first time after construction or substantial rehabilitation, and the seller is acting as a business (typically a developer or promotor). That first delivery is subject to IVA + AJD.

A second or subsequent transfer of the same property — even if it has never been lived in — is generally treated as a resale and falls under ITP (Impuesto sobre Transmisiones Patrimoniales) instead, which is a regional tax with its own rates. The line between "first delivery" and "second delivery" is not always obvious (think: a developer that rented the unit before selling it), so ask your abogado to confirm the classification in writing.

IVA: VAT on a new-build in Spain

IVA (Impuesto sobre el Valor Añadido) is a national tax charged by the seller and remitted to the Agencia Tributaria.

• Residential new-builds (homes, garage spaces, and storage rooms transferred together, up to limits): a reduced IVA rate applies — historically 10% on the mainland and the Balearics. Confirm the current rate for your closing date with AEAT.
• Commercial premises, plots of land, and standalone parking/storage: the general IVA rate applies — historically 21%.
• Canary Islands: IVA does not apply. Instead, the IGIC (Impuesto General Indirecto Canario) is charged at a lower rate. Verify the current IGIC rate for residential property with the Agencia Tributaria Canaria.
• Officially protected housing (VPO) in certain categories: a super-reduced rate has historically applied. Eligibility is narrow — your abogado should confirm.

IVA is calculated on the declared price in the deed (escritura). The developer issues an invoice showing the IVA separately and pays it to the tax authority; you pay it as part of the closing funds.

Practical note for foreign buyers

You cannot reclaim residential IVA the way a business reclaims input VAT. If you are buying through a Spanish company (SL) for genuine commercial-rental use, the IVA treatment can differ — but that is a structural decision with consequences for income tax, non-resident tax, and Modelo 720/721 reporting. Get tailored advice before you go down that road.

AJD: Stamp duty on the notarised deed

AJD (Actos Jurídicos Documentados) is a regional tax on notarised, registrable documents — including your new-build purchase deed and, separately, your mortgage deed if you take out financing.

• AJD is set by each Comunidad Autónoma, so the rate varies by region. In 2026 you should expect to see rates roughly in the 0.5% to 1.5% range on residential new-builds, with some regions offering reductions for young buyers, large families, or primary residences. Confirm the current AJD rate with the tax office of the autonomous community where the property is located — Andalucía, the Valencian Community, Madrid, Catalonia, the Balearics, and Murcia all set their own.
• AJD is calculated on the declared deed value (typically the same base as IVA).
• For mortgages on residential property, recent national rules shifted the AJD on the mortgage deed itself to the lender rather than the borrower. Other mortgage-related costs (valuation, your own copies of the deed, etc.) may still fall to you. Ask the bank for a written breakdown.

Who pays what at closing

For a typical new-build purchase from a developer in mainland Spain in 2026, your closing tax stack looks like this:

• IVA on the purchase price — paid by you to the developer, who remits it to AEAT.
• AJD on the purchase deed — paid by you to the regional tax office, usually within 30 working days of the deed being signed (your gestoría normally handles the filing).
• Notary fees — regulated nationally, scaled to deed value.
• Land Registry (Registro de la Propiedad) fees — also regulated, scaled to deed value.
• Gestoría fees — if you use one to handle filings.
• Legal fees — your independent abogado, typically a percentage of price or a flat fee.

As a rough working budget, foreign buyers of a mainland new-build often plan for roughly 11–13% of the purchase price in combined taxes and closing costs, depending on the region and whether a mortgage is involved. Treat that as a planning figure, not a quote — your abogado should give you a written cost estimate before you sign the reservation contract.

The buying timeline and where the taxes hit

1. Reservation contract (*contrato de reserva*) — a small deposit takes the unit off the market. No IVA charged yet on the deposit in most structures, but check the contract.
2. Private purchase contract (*contrato privado de compraventa*) or off-plan staged payments — as you make staged payments to the developer during construction, IVA is charged on each instalment at the residential rate. Keep every invoice.
3. Completion at the notary (*escritura pública*) — the balance is paid, the deed is signed, and AJD is triggered. The notary sends the deed for registration.
4. Filing and registration — AJD is paid to the regional tax authority within the statutory window, and the deed is recorded at the Registro de la Propiedad.
5. Post-closing — you set up direct debits for IBI (annual local property tax), rubbish collection, community fees, and (for non-residents) annual Modelo 210 filings.

Common pitfalls foreign buyers run into

• Assuming the headline price includes IVA. Developer brochures sometimes quote "PVP + IVA." Always confirm in writing whether the price is gross or net.
• Forgetting AJD on staged payments vs. completion. IVA is charged as you pay; AJD hits at the deed. Budget both.
• Bank guarantees on off-plan deposits. Spanish law requires developers to guarantee buyers' deposits on off-plan purchases via a bank guarantee or insurance policy. If a developer cannot show you one, walk away.
• Using the developer's lawyer. They do not represent you. Hire an independent abogado who is not paid by the seller.
• NIE and bank account delays. You need a NIE (Número de Identidad de Extranjero) to sign the deed and to pay taxes. Start the process early.
• Currency transfers. Spanish banks require source-of-funds documentation. Plan FX and SEPA transfers weeks ahead, not days.
• Confusing IVA with ITP. If you are buying a never-occupied unit from someone who is not a developer (e.g. an investor reselling an off-plan contract), the transaction may fall under ITP, not IVA + AJD. The total tax bill can be very different.

Short FAQ

Is IVA negotiable? No. The rate is set by law. The price is negotiable; the IVA on that price is not.

Can I get IVA back when I sell? No, not as a private resident buyer. When you eventually sell, the buyer pays ITP to the region (because it is now a second transfer), not IVA to you.

Does AJD apply if I pay cash with no mortgage? Yes — AJD on the purchase deed still applies. You simply avoid the separate AJD-related costs tied to a mortgage deed.

Are there reductions for primary residence or young buyers? Several autonomous communities offer reduced AJD rates for specific buyer profiles. Check with the regional tax office for your community in 2026.

What about the Canary Islands, Ceuta, and Melilla? Different indirect-tax regimes apply (IGIC in the Canaries; IPSI in Ceuta and Melilla). The structure of "indirect tax + AJD" is similar in spirit but the rates and rules differ. Get local advice.

Spanish tax rates, thresholds, and regional rules change regularly. The figures and ranges in this guide are general orientation for 2026 and not a substitute for advice. Before you sign a reservation contract, confirm the current IVA, AJD, and closing-cost figures with the Agencia Tributaria, the regional tax office of the Comunidad Autónoma where the property is located, and an independent licensed Spanish abogado.