Taxes and costs of buying a new build in Spain
Short answer: On a new build bought from the developer you pay 10% VAT (IVA) on the price plus stamp duty (AJD): 1.4% in the Valencian Community (Alicante) since 1 June 2026, 1.5% in the Region of Murcia and 1.2% in Andalusia. Notary, land registry, lawyer and admin usually add roughly another 1.5–2.5% (estimate). Resale homes pay transfer tax (ITP) instead of VAT.
VAT (IVA): 10%
New homes bought directly from the developer pay 10% VAT on the purchase price. Officially protected housing (VPO) pays 4%. The Canary Islands use IGIC instead of VAT. VAT is paid in stages: on the reservation, on each stage payment and on the balance at completion.
Stamp duty (AJD) by region
The public deed of a new build also pays Actos Jurídicos Documentados (AJD), a regional tax on the deed value. General rates checked on 22 Oct 2026: Valencian Community (Alicante province) 1.4% since 1 June 2026 (Law 5/2025); Region of Murcia 1.5% since 25 July 2025 (Law 3/2025); Andalusia (Almería, Málaga) 1.2%. Reduced rates exist for some main-residence buyers; your lawyer or notary confirms the rate that applies to you.
Notary, land registry, lawyer and admin
Notary and land registry fees follow official scales and depend on the price. An independent lawyer usually charges around 1% of the price plus VAT, and an admin agency (gestoría) a fixed fee. Together these typically add around 1.5–2.5% of the price; this is an estimate, ask for written quotes.
Yearly costs as a non-resident owner
Council tax (IBI) set by each town hall; community fees if the development has shared areas; and non-resident income tax (IRNR) on an imputed income of 1.1% or 2% of the cadastral value, taxed at 19% for EU/EEA residents and 24% for everyone else (UK residents included since Brexit). If you rent the home out, you declare the rental income instead.
Example
For a €300,000 new build apartment in Alicante province: €30,000 VAT + €4,200 AJD (1.4%) + roughly €4,500–7,500 notary, registry, lawyer and admin ≈ €339,000–342,000 in total. Always ask your lawyer for the exact figure before reserving.
General information, not legal or tax advice. Always confirm with your lawyer or notary.