Resale vs New-Build Tax in Spain 2026: ITP or IVA+AJD — Which Costs a Foreign Buyer More?

Resale vs New-Build Tax in Spain: ITP or IVA+AJD — Which Costs a Foreign Buyer More?

When you buy property in Spain in 2026, one of the biggest cost differences between two otherwise identical homes has nothing to do with the price tag — it's the tax regime that applies at closing. Buy a resale home and you pay ITP (Impuesto de Transmisiones Patrimoniales). Buy a brand-new first-transfer property from a developer and you pay IVA (VAT) plus AJD (Actos Jurídicos Documentados, stamp duty).

These are mutually exclusive, they're set by different authorities, and they can swing your total acquisition cost by thousands of euros. Here's how to think about it as a foreign buyer.

⚠️ Spanish tax law changes frequently, and autonomous communities (Andalucía, Catalunya, Comunidad Valenciana, Madrid, Baleares, etc.) set their own rates. Always confirm current percentages with the Agencia Tributaria and your regional tax authority, and engage an independent abogado or gestor before signing anything.

The Two Tax Regimes in Plain English

Resale property → ITP (regional tax)

If the property has been transferred before — even once — the sale is a "second or subsequent transfer." You, the buyer, pay ITP to the autonomous community where the property is located. ITP is paid once, at closing, and is calculated on the higher of the deed price or the valor de referencia set by the Catastro (more on that below).

• Rates are typically in the single-digit to low-double-digit percentage range depending on region.
• Some regions apply a flat rate; others use a sliding scale based on price.
• Reduced rates often exist for under-35 buyers, large families, primary residences, or properties below a threshold — but these usually require Spanish tax residency.

New-build (first transfer) → IVA + AJD (national + regional)

If you're the first buyer of a newly built residential property direct from the developer, you pay:

• IVA (national VAT) on the purchase price — currently a reduced rate for residential housing and a different, higher rate for commercial premises, parking beyond a certain count, or pure land. Confirm the exact percentage with the Agencia Tributaria.
• AJD (stamp duty) on the public deed — a smaller percentage set by your autonomous community.

IVA goes to the national treasury; AJD goes to the region. Together they replace ITP — you never pay both regimes on the same purchase.

Which Is Cheaper? It Depends on the Region

There is no universal answer to "ITP or IVA+AJD — which costs less?" because:

1. ITP rates vary widely by region. A region with a low ITP rate may make resale dramatically cheaper than new-build. A region with a high ITP rate may make new-build (IVA+AJD) competitive or even cheaper.
2. Reduced ITP brackets for primary residences, young buyers, or modest-priced homes can tilt the math further toward resale — but most non-resident foreign buyers don't qualify.
3. AJD rates also vary by region, so the "new-build" side of the equation isn't fixed either.
4. The taxable base differs. ITP uses the valor de referencia (or deed price, whichever is higher). IVA is calculated on the actual contract price. If the Catastro's reference value is significantly above your negotiated price, ITP can become unexpectedly painful on a resale.

Practical rule of thumb for foreign, non-resident buyers in 2026: in many regions the combined IVA+AJD on a new-build lands somewhere broadly similar to — sometimes slightly higher than — standard ITP on a resale. But "broadly similar" hides real money. Ask a local gestor to run the numbers on your specific property in your specific region before you commit.

What Else You'll Pay at Closing (Both Regimes)

Regardless of which tax applies, budget for:

• Notary fees — regulated nationally on a sliding scale by deed value.
• Land Registry (Registro de la Propiedad) fees — also regulated, also sliding scale.
• Legal fees for your independent abogado — typically a percentage of the purchase price or a flat fee; negotiate this in writing before engagement.
• Gestoría fees if you outsource the tax filings and registration.
• NIE acquisition costs if you don't yet have a Número de Identificación de Extranjero — you cannot buy without one.
• Bank charges for the certified cheque or transfer used at the notary.

A common all-in estimate for total acquisition costs (tax + fees) is somewhere in the 10–15% range on top of the purchase price, but this is a planning figure only — your actual number depends on region, property type, and whether you finance.

The Valor de Referencia Trap on Resales

Since the change introduced by Law 11/2021, ITP is calculated on the higher of the purchase price or the Catastro's valor de referencia. This matters because:

• If you negotiate a great deal below the reference value, you still pay ITP on the higher reference value.
• You can challenge the reference value, but the burden is on you, it takes time, and it requires an expert valuation report.

There is no equivalent issue with IVA on new-builds — IVA is charged on the price the developer actually invoices.

Canary Islands, Ceuta and Melilla — Different Rules

If you're buying in the Canary Islands, IVA is replaced by IGIC (Impuesto General Indirecto Canario) at a different (generally lower) rate. Ceuta and Melilla apply IPSI instead of IVA. Resale ITP still applies in those territories but at locally set rates. If you're shopping in these regions, ignore generic Peninsula-Balearics tax advice and confirm everything with a local gestor.

Special Situations Worth Flagging

• Buying from a company instead of a developer. A property owned by a company but already used (e.g., rented out) is often a "second transfer" — ITP, not IVA. The corporate seller's status doesn't automatically make it IVA.
• Off-plan / pre-construction. You pay IVA on each stage payment to the developer, with the AJD settled at the deed. Keep every receipt.
• Renovated property sold as "new." A rehab doesn't always qualify as "first transfer." The legal test is technical — ask your abogado.
• Land purchases. Buildable land sold by a business is usually IVA; rural land between individuals is usually ITP. The rate may differ from the residential rate.
• Mortgage AJD. Since 2018 the bank, not the buyer, pays AJD on the mortgage deed itself. Don't let anyone bill this to you.

Common Pitfalls for Foreign Buyers

• Underestimating regional variation. Quotes you read on a national portal may be irrelevant to your specific province.
• Trusting the developer's lawyer. Always retain your own independent abogado.
• Ignoring the reference value when negotiating a resale.
• Missing the filing deadline. ITP and AJD self-assessments must generally be filed within 30 business days of the deed — late filing triggers surcharges. Your gestor normally handles this.
• Forgetting non-resident obligations. After purchase you'll owe non-resident income tax (IRNR) annually whether you rent the place out or not, plus IBI (municipal property tax) and possibly wealth tax.

Short FAQ

Q: Can I claim back the IVA on a holiday home? No — IVA on a residential property bought for personal use is not recoverable. Only specific business uses with proper registration may allow recovery; talk to a tax advisor.

Q: Are non-residents charged a higher ITP rate? No. ITP is the same regardless of nationality or residency. Reduced ITP rates, however, often require Spanish tax residency or primary-residence status.

Q: If I buy through a Spanish SL, does the regime change? The classification (ITP vs IVA) still depends on whether it's a first or subsequent transfer, but corporate buyers may have different deduction rights. Get specific advice.

Q: Does the *Beckham Law* or *Golden Visa* change my purchase tax? No — those affect income tax and residency, not the transfer tax on the property itself.

Bottom Line

For a foreign buyer in 2026, the honest answer to "which is cheaper, resale or new-build?" is: it depends on your region, your price point, and the Catastro's reference value on the specific resale. The only reliable way to know is to ask a local gestor or abogado to compute both scenarios for the exact property and region you're considering — before you sign the contrato de arras.

Tax rules and rates change. Always verify with the Agencia Tributaria, your autonomous community's tax portal, and an independent licensed professional before acting on anything you read here.