When buying property in Andalusia, the taxes depend primarily on whether you are purchasing a new-build or resale property.
Taxes on a new-build property
Buyers purchasing a new-build home directly from a developer generally pay:
- 10% VAT (IVA)
- 1.2% Stamp Duty (AJD)
These taxes are normally calculated on the purchase price. If you use a Spanish mortgage, the bank pays the taxes and formalisation costs associated with the mortgage deed. However, the buyer still normally pays the 1.2% AJD relating to the new-build purchase deed.
Taxes on a resale property
For a resale property purchased from a private owner, VAT and purchase AJD do not normally apply. Instead, the buyer pays Property Transfer Tax (ITP) at the general Andalusian rate of 7%. Certain reduced rates may apply to qualifying buyers and lower-value main residences.
The taxable amount may be based on the highest of the agreed purchase price, the declared value or the official cadastral reference value. Buyers should therefore check the reference value before signing a reservation or private purchase contract.
Additional purchase costs
Buyers should also budget for:
- Notary and Land Registry fees
- Independent legal representation
- Property valuation fees when applying for a mortgage
- Administrative or translation services where required
Notary and Land Registry charges follow regulated tariffs, while lawyers set their own professional fees. Buyers should request a detailed written quotation rather than relying on a fixed percentage estimate.
Before reserving a property, we recommend preparing a complete purchase-cost breakdown covering the price, taxes, legal fees and payment schedule. This gives international buyers a clear picture of the total funds required before making a financial commitment.
