AJD Tax (Actos Juridicos Documentados)
Definition
AJD stands for Actos Juridicos Documentados, which translates as Documented Legal Acts. It is a form of stamp duty charged on the notarisation of official documents in Spain, including mortgage deeds and, in some regions, new-build purchase deeds. The rate varies by autonomous community. In Andalusia, which covers the Costa del Sol, the AJD rate on new-build properties is 1.2 per cent of the purchase price, applied on top of the 10 per cent VAT (IVA) already charged on new homes.
Why It Matters
AJD is one of the less visible costs of buying a new-build property in Spain and is frequently overlooked by buyers who focus only on IVA. If you are taking out a mortgage, the bank typically pays the AJD on the mortgage deed following a 2018 Supreme Court ruling. However, on the purchase deed itself, the buyer still pays AJD for new-build transactions. For resale properties, the equivalent tax is Transfer Tax (ITP), and AJD does not apply to the purchase deed in the same way.
Where It Appears in the Buying Process
AJD on a new-build purchase is due at completion when the title deed (escritura) is signed at the notary. Your legal representative will calculate the exact amount based on the declared purchase price in the deed and arrange payment to the regional tax authority within 30 working days of signing. Failure to pay on time incurs surcharges.
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