taxes

What VAT (IVA) do I pay on new-build property in Spain?

New-build properties in Spain are subject to IVA (Impuesto sobre el Valor Añadido) — the Spanish equivalent of VAT — instead of ITP transfer tax.

The current rate is 10% of the purchase price for residential properties.

In addition to IVA, buyers of new builds also pay AJD (Actos Jurídicos Documentados), a stamp duty tax that varies by region — in the Valencian Community it's 1.5% of the purchase price.

So the total tax on a new-build purchase is 11.5% compared to 10% ITP for resale.

For commercial properties or building plots, the IVA rate is 21%.

The developer charges IVA on the invoice, which you pay as part of the purchase price.

Your lawyer handles the AJD payment.

IVA is not negotiable — it's set by law.

When comparing new-build vs resale prices, factor in this tax difference.

WOW-Estates includes full tax calculations in all property comparisons.