Purchase taxes and costs

It is for anyone considering, planning or carrying out a move to Spain who is thinking of buying. It covers the tax on resale homes, VAT and stamp duty on new builds, reductions for first-time, young and family buyers, the buyer's retention when the seller is non-resident, and notary, registry and gestor fees. It does not cover income tax for non-residents, wealth tax or moving money abroad.

Start with "What buying a home in Spain really costs beyond the price". It gives you a realistic closing budget and points you to the other pages for the detail on each tax and fee.

Key rules

• New-build VAT: VAT (IVA) on a new home from a developer is 10%, charged on top of the price.
• Tax filing deadline: The ITP or AJD return (modelo 600 or the regional equivalent) must be filed and paid within 30 working days of signing the deed.
• Who pays ITP: The buyer is the taxpayer for ITP on a resale and for AJD on a new build, even when a gestoría files the return.
• Seller retention: When the seller is not a tax resident in Spain, you must withhold 3% of the price and pay it with modelo 211 within one month of the deed.
• Closing budget: Plan for roughly 10-15% on top of the price.
• Resale tax: You pay ITP, set by your region, instead of IVA.

Purchase taxes and costs: the whole process, step by step

• Build your closing budget with taxes, fees and professional costs: Before you make an offer

• Work out which tax applies: transfer tax (ITP) on a resale, or 10% VAT (IVA) plus stamp duty (AJD) on a new build, and find your region's rate: Before you sign the deed

• Check for regional reductions for young, family or first-time buyers, and gather the proof they need: Before you sign the deed, so you can claim on the return

• Sign the deed at the notary, then pay the notary fee: On the day of the deed

• If the seller is not a tax resident in Spain, pay the 3% retention with modelo 211 and keep the receipt for the seller: Within one month of the deed

• File and pay the ITP or AJD return (modelo 600 or your region's equivalent), claiming any reduction on it: Within 30 working days of signing the deed

• Register the purchase at the property registry and pay the registry fee: After the tax return is filed

• If a reduction was missed, ask your regional tax office to correct the return and refund the difference: Within four years of filing

Documents you may need

Identity and residence

• Proof of residence or registration at the address — Tax reductions and aid for first-time, young and family buyers
• A signed statement that the home will be your main residence — Tax reductions and aid for first-time, young and family buyers
• The seller's ID or passport — The buyer's 3% retention when the seller is non-resident
• The seller's declaration of residence in the deed — The buyer's 3% retention when the seller is non-resident
• A tax-residence certificate from the Spanish tax agency or the seller's foreign — The buyer's 3% retention when the seller is non-resident
• Your NIE — Notary, registry and gestor fees explained

Income and work

• Written quote from the gestoría listing the services included — Notary, registry and gestor fees explained

Payments and receipts

• The receipt for your payment with modelo 211 — The buyer's 3% retention when the seller is non-resident

Translations and legal papers

• Translations of foreign documents — Notary, registry and gestor fees explained

Purchase taxes and costs: questions that cross several articles

Why does the tax on my purchase depend on where in Spain I buy?

Each region sets its own transfer tax (ITP) on resales and stamp duty (AJD) on new builds, so the rate changes with the region. Resale rates run from about 4% in the Basque Country to 10% or more elsewhere, and new-build stamp duty from about 0.5% to 1.5%. See What buying a home in Spain really costs beyond the price.

How much should I add to the price for notary, registry and gestor fees?

Notary and registry fees together usually come to roughly 700 to 1,200 euros for a home of 150,000 to 300,000 euros. Both follow a regulated scale based on the price, and a mortgage deed is charged separately. Gestoría fees vary by firm, so ask for written quotes. See "Notary, registry and gestor fees explained" and "What buying a home in Spain really costs beyond the price".

Can I pay less tax if I am young or buying with a family?

Yes, some regions give reduced ITP or AJD rates to young buyers or large families, and you claim the reduction on the tax return with proof. Rules differ by region and some newcomers may not qualify. Read "Tax reductions and aid for first-time, young and family buyers", then "Transfer tax (ITP) when you buy a resale home" for the return.

Does a gestoría take over my tax responsibility?

No, you stay the taxpayer even when a gestoría files the return for you. A gestoría can handle the tax returns, the registration and the follow-up for a fee. If the seller is non-resident, read "The buyer's 3% retention when the seller is non-resident" too.