Property Transfer Tax
Impuesto de Transmisiones Patrimoniales, or ITP, is the main tax when buying a resale property. In Andalusia, it is 7%.
Tax guide
A practical guide to the main costs, taxes and requirements involved in buying or selling property in Spain.
The Spanish legal and tax system may be different from what international clients are used to in their home country. For this reason, it is important to understand the main taxes and costs involved in a property transaction.
This guide gives a general overview of the main buyer costs, seller costs, mortgage-related expenses, and basic requirements for non-residents buying or selling property in Spain.
Key takeaway
The figures in this guide provide a general overview. Taxes and costs can vary depending on the region, municipality, property type, and personal circumstances.
For a resale property, also known as a second-hand property, the main tax is Property Transfer Tax.
Impuesto de Transmisiones Patrimoniales, or ITP, is the main tax when buying a resale property. In Andalusia, it is 7%.
The notary is responsible for the official signing of the purchase deed.
The property must be registered under the buyer's name in the Land Registry.
The gestoría, or administrative service, handles administrative procedures in Spain.
For new properties, off-plan purchases, or developer purchases, the main taxes are VAT and AJD.
Impuesto sobre el Valor Añadido, or VAT, is 10% when buying directly from a developer.
Actos Jurídicos Documentados, or AJD, is 1.2% in Andalusia and applies when formalizing the purchase in a public deed.
Notary and Land Registry costs also apply when buying a new property.
Administrative service costs also apply, as with resale property purchases.
If the buyer applies for a mortgage, some costs may be paid directly by the buyer.
Under current law, most mortgage-related costs are covered by the bank.
Estimated buyer costs
These are general estimated total purchase costs as a percentage of the purchase price.
Non-resident sellers should also plan for taxes and costs related to the sale of the property.
Impuesto sobre la Renta de no Residentes, or Non-Resident Income Tax, is applied to the profit obtained from the sale. It is calculated on the gain, not on the full sale price.
The buyer must retain 3% of the sale price and pay it directly to the Spanish tax authorities on behalf of the seller.
The seller can later regularize their tax situation and may potentially recover part of the retained amount.
Plusvalía is a local tax charged by the town hall. It depends on the length of ownership and the value of the land.
If there is an existing mortgage on the property, cancellation costs may apply.
An energy efficiency certificate is mandatory when selling a property.
A real estate agency fee may apply, depending on the agreement with the agency.
Because each transaction is unique, sellers should receive personalized legal and tax advice.
The NIE, or Foreigner Identification Number, is required for all legal and tax-related transactions in Spain.
A Spanish bank account is necessary to manage payments, taxes, and utilities.
Professional guidance helps ensure the transaction is handled correctly and that tax obligations are understood.
Each transaction is different, so the exact requirements and costs should be checked based on the buyer or seller's situation.
Taxes may vary depending on the Autonomous Community where the property is located.
Local taxes and charges may vary depending on the municipality.
The exact tax position may depend on the buyer or seller's personal circumstances.
This guide is for informational purposes only and does not replace professional legal or tax advice.
Domsol provides support to international clients throughout the entire process, from preparation to completion and key handover.
Our goal is to make buying or selling property in Spain simple, secure, and transparent.
With the right guidance, international clients can better understand their obligations, prepare the correct documents, and move through the transaction with confidence.
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Speak with Domsol before buying or selling. We can help you understand the likely costs, taxes, and requirements for your situation.
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