Taxes When Buying
New Build in Spain
Every tax you will pay — at purchase, annually, and on eventual sale. No surprises, no guesswork.
All Taxes for New Build Property in Spain
A complete reference table covering purchase taxes, annual taxes, and disposal taxes for non-resident buyers.
| Tax | Rate | When |
|---|---|---|
| IVA (VAT) | 10% | At completion |
| AJD (Stamp Duty) | 1.2% | At completion |
| IBI (Annual Property Tax) | 0.4–1.1% | Annually |
| IRNR (Non-Resident Income Tax) | 19–24% | Annually |
| Plusvalía Municipal | Variable | On resale |
| Capital Gains Tax | 19–23% | On resale |
| Wealth Tax (Impuesto de Patrimonio) | Variable | Annually |
Tax advice disclaimer: Tax rules change. This guide reflects the position as of early 2025. Always engage a Spanish tax adviser (asesor fiscal) for personalised tax advice before completing any transaction. Tax rates, exemptions, and allowances can change with each annual budget.
Tax FAQs
New build properties are subject to IVA (VAT) at 10%, not ITP (Transfer Tax). ITP applies to resale properties only. Additionally, all new build purchases attract AJD (Stamp Duty / Actos Jurídicos Documentados) at 1.2% in Andalusia, on top of the VAT. Both are calculated on the purchase price stated in the escritura (title deed).
VAT and stamp duty are paid at the point of completion — when you sign the escritura at the Notary. Your lawyer will calculate the amounts due and arrange payment to the tax authority (Agencia Tributaria) within 30 days of signing. Both taxes are paid together after completion.
As a non-resident, you pay: (1) IBI (property tax), billed annually by the municipality and based on the cadastral value; (2) Non-Resident Income Tax (IRNR) — either on actual rental income at 19% (EU residents) or 24% (non-EU residents), or as an imputed income charge of 2% of cadastral value if the property is not rented. You must file an annual IRNR declaration even if you do not rent the property.
Andalusia abolished wealth tax for residents and non-residents effective from the 2022 tax year, through a 100% tax credit (bonificación). As of 2025, no wealth tax is payable in Andalusia. However, this policy could be changed by a future regional government. Non-resident owners in other Spanish regions (Catalonia, the Balearics) do still pay wealth tax — Andalusia's policy applies specifically to Andalusia where the Costa del Sol is located.
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