IVA and AJD on New-Build Property in Spain: What You Actually Pay in 2026

IVA and AJD on New-Build Property in Spain: What You Actually Pay in 2026

If you're buying a brand-new home in Spain — directly from a developer, off-plan, or as the first transmission of a finished unit — your tax bill looks very different from a resale purchase. Instead of the regional transfer tax (ITP), you pay IVA (Spanish VAT) plus AJD (Actos Jurídicos Documentados, or stamp duty). Together these usually represent the single largest line item on your closing settlement, and they're often misunderstood by foreign buyers comparing Spain to a US, UK, or Canadian transaction.

This guide walks you through what these taxes are, the rates generally applied in 2026, who collects them, when they're due, and the common traps that catch international buyers. Tax law changes, regional rules differ, and any specific figure should be confirmed with your independent Spanish abogado or a colegiado tax adviser (asesor fiscal) before you sign anything.

The Short Version: IVA + AJD vs. ITP

Spain splits property purchase tax into two regimes:

• New-build (primera entrega): You pay IVA (a national VAT, regulated by the Agencia Tributaria) plus AJD (a regional stamp duty on the notarised deed).
• Resale (segunda transmisión): You pay ITP (Impuesto de Transmisiones Patrimoniales), a regional transfer tax — no IVA, no AJD on the deed itself (in most cases).

A "new-build" for tax purposes generally means the first transmission of a property from the developer (promotor) after construction. If a developer builds, rents the unit for a long period, and then sells it, it may legally count as a "second transmission" and fall under ITP instead. Edge cases like this are exactly why you want a Spanish lawyer reviewing the deed, not the developer's notary.

What You Actually Pay: IVA on a New-Build Home

For a residential new-build dwelling sold by the developer, IVA in 2026 is generally applied at the reduced rate that has historically been 10% of the declared purchase price for housing. The standard rate (historically 21%) typically applies to:

• Plots of land (urban land sold by a business),
• Commercial premises (locales),
• Parking spaces beyond a small number transmitted with the home, and
• Garages and storage rooms sold separately from the dwelling.

In the Canary Islands, IVA does not apply at all. Instead, you pay IGIC (Impuesto General Indirecto Canario) at a different — and generally lower — rate. Ceuta and Melilla have their own indirect tax (IPSI). If you're buying in those territories, ignore mainland IVA rates and confirm the current IGIC/IPSI figure with a local asesor fiscal.

Important: rates can be modified by national budget law. Before you sign, verify the current IVA rate on residential dwellings directly with the Agencia Tributaria or your tax adviser. Don't rely on a number you read in a guide — including this one.

AJD: The Stamp Duty You Often Forget

AJD (Actos Jurídicos Documentados) is a regional tax levied on notarised documents that have economic content and are entered in a public register — which is exactly what your escritura pública de compraventa is. It's collected by the Comunidad Autónoma where the property is located, not by the central government.

Because it's regional, the rate varies. Across Spain in recent years, AJD on a new-build purchase has typically fallen in the range of 0.5% to 1.5% of the deed value, with most regions sitting around 1% to 1.5%. Andalucía, Valencia, Madrid, Cataluña, Murcia, the Balearics — each sets its own number, and each can offer reduced rates for:

• Habitual residence (vivienda habitual),
• Buyers under a certain age,
• Large families,
• People with disabilities,
• Properties below a certain value threshold.

If you're a non-resident buying a holiday home, you usually won't qualify for the reduced AJD bands aimed at primary residences. Ask your abogado what your specific region charges in 2026 and whether any reduction applies to your profile.

A Realistic Closing-Cost Picture

For a typical foreign buyer purchasing a new-build apartment or villa from a developer in 2026, your tax-and-fees budget usually breaks down like this:

• IVA on the dwelling (reduced rate, historically 10%) — paid to the developer, who remits it.
• AJD stamp duty (regional, often around 1–1.5%) — paid at the notary or shortly after.
• Notary fees — set by national tariff, typically a few hundred to a couple of thousand euros depending on price.
• Land Registry (Registro de la Propiedad) fees — also tariff-based.
• Gestoría / abogado fees — negotiated; budget for independent legal representation.
• Mortgage costs (if financing) — since the 2019 mortgage law reform, the bank pays AJD on the mortgage deed itself, but you'll still pay the appraisal (tasación).

A common rule of thumb foreign buyers use is to budget 12–14% on top of the purchase price for a new-build, versus around 10–12% for a resale. Treat that as a planning range, not a quote. Your abogado should give you a written desglose (itemised estimate) before you sign the arras (deposit) contract.

Who Pays Whom, and When

The mechanics confuse a lot of first-time foreign buyers:

• IVA is paid by you to the developer at each milestone payment (deposit, stage payments, and completion). The developer is responsible for declaring it to the Agencia Tributaria. Your invoices (facturas) must show IVA broken out — keep every one.
• AJD is paid by you, the buyer, to the regional tax authority. In practice, your gestoría or abogado handles the filing (Modelo 600 or its regional equivalent) within the deadline after signing the deed — typically 30 business days, but check your region.
• Notary and Registry fees are paid through the gestoría as part of the post-completion package.

If AJD isn't filed and paid on time, the Land Registry won't inscribe your title — meaning you legally own the property under the deed, but the public register won't show it, which creates real problems down the road.

Common Pitfalls for Foreign Buyers

• Assuming IVA is negotiable. It isn't. The developer cannot legally absorb or "include" IVA in a way that reduces the tax owed. Quoted prices should clearly state "IVA incluido" or "más IVA."
• Forgetting AJD exists. Many off-plan brochures show "price + 10% IVA" and quietly omit AJD. Always ask for the all-in cost.
• Buying through an SL/SRL without advice. Buying a Spanish property through a company can change the IVA treatment (reverse charge, deductibility) and is rarely the right move for a personal holiday home. Get tax advice first.
• Mixing up parking and storage. A trastero or plaza de garaje transmitted with the dwelling generally rides the same reduced IVA rate; bought separately later, it may be taxed at the standard rate.
• Land plus self-build. If you buy land and contract a builder, the land purchase is taxed differently from the construction services — and the totals are not the same as buying a turnkey new-build.
• Plusvalía municipal. This municipal tax on the increase in urban land value is normally a seller's cost on a new-build (the developer pays), but always confirm in writing in the contract.

Short FAQ

Is IVA refundable for non-residents? No. Residential IVA on a home for personal use is not recoverable. Only businesses making taxable supplies can deduct input IVA, and a private holiday home doesn't qualify.

Does buying off-plan change anything? You'll pay IVA on each stage payment as it's invoiced. AJD is triggered when the escritura is signed at completion, not at reservation.

What if the developer offers a "discount equal to the IVA"? Be very cautious. The tax still has to be declared and paid. Make sure your abogado reviews the contract — discounts can be legitimate marketing, or they can be a red flag.

Canary Islands, Ceuta, Melilla? Different indirect tax regime entirely. Confirm IGIC or IPSI rates locally.

Final Word

IVA and AJD are predictable taxes once you understand the structure, but the exact rates, regional reductions, and edge cases shift — sometimes year to year, sometimes mid-year through budget laws. Before you sign an arras contract or wire a deposit in 2026, get a written cost breakdown from an independent Spanish abogado (not the developer's lawyer) and confirm current rates with the Agencia Tributaria and your Comunidad Autónoma's tax office. The standard disclaimer on this page applies: laws and figures change, and nothing here is a substitute for licensed professional advice on your specific transaction.