VAT and Stamp Duty

  • Buyers of properties that have been bought and sold once or more pay Impuesto sobre Transmisiones Patrimoniales – Stamp Duty, calculated as a percentage of the declared purchase price. This percentage varies slightly from one Spanish region to another; but it is roughly 7%.
  • Buyers of new residential properties in Spain (i.e. bought or sold for the very first time) pay VAT (IVA) at 7%, and an additional 1% tax: the Impuesto sobre los Actos Jurídicos Documentados.
  • If you take out a mortgage in Spain you will have to pay the 1% Impuesto sobre los Actos Jurídicos Documentados on the amount borrowed.
  • Buyers of certain types of commercial property in Spain pay VAT at a higher rate of 16%, along with buyers that purchase garage spaces independently from an apartment.