Taxes when buying a home in Spain
Buying a home in Spain means separating the tax on the purchase from the cost of the mortgage. For a new home, the central state figure is 10% VAT on housing fit for residential use; for a resale home, the reference is TPO. The deed may add AJD, and each tax has a different taxpayer.
Which tax separates new homes from resale homes?
New homes are organised around VAT; resale homes are organised around TPO within ITPAJD. The purchase deed can add AJD for a new home when its requirements are met, but that AJD is not the same as mortgage-loan AJD.
| Purchase | Main tax | Possible documentary tax |
|---|---|---|
| New home delivered by a developer | State VAT: 10% for housing fit for residential use; 4% only for VPO de régimen especial or public-promotion housing under the verified terms | Purchase-deed AJD if it is a first copy, has valuable content, is registrable and is not subject to inheritance and gift tax, TPO or corporate transactions |
| Resale home, as a typical case between private parties | TPO, the onerous transfers limb of ITPAJD | Not on the same transfer if TPO applies; incompatibility with VAT is analysed separately |
| Loan secured by a mortgage to finance the purchase | Not a tax on acquiring the home | Mortgage-loan AJD: taxpayer lender since Royal Decree-law 17/2018 |
The separation matters because the payment rules are not the same. Under VAT, the buyer bears the amount charged by the seller or developer through an invoice. Under TPO and purchase-deed AJD, the acquirer is the taxpayer under the state framework and self-assesses the tax. Under mortgage-loan AJD, the reform introduced by Royal Decree-law 17/2018 moves taxpayer status to the lender.
How is VAT paid on a new home?
The buyer pays VAT to the seller or developer, which charges it on the invoice; the VAT Law does not set up a buyer self-assessment for an individual buying a new home. The verified state rate is 10% for a new home fit for residential use.
The 10% rule includes, under the verified state framework, parking spaces up to a maximum of two units and annexes transferred jointly. The fact sheet excludes business premises as housing annexes for these purposes, and also buildings intended for demolition under this point. So it is not enough to look at the fact that the property is in a development: the classification as housing fit for residential use, the delivery and the included annexes are relevant.
The 4% rate must not be presented as a rule for all protected housing. The fact sheet only allows the statement that the super-reduced rate is limited to homes administratively classified as VPO de régimen especial or public-promotion housing when delivered by the developer, with garages and annexes transferred jointly and a maximum of two spaces. If the marketing material uses another protected-housing label, the check should be made against the administrative documents for the home and the invoice.
What AJD can arise on a new-home purchase deed?
In addition to VAT, the notarial purchase deed can be subject to AJD-notarial documents if it is a first copy, has valuable content, is registrable and is not subject to inheritance and gift tax, TPO or corporate transactions. For that purchase-deed AJD, the state taxpayer is the acquirer of the asset or right.
This point is one of the common confusions in a financed purchase. Two deeds and two rules must be kept apart: the purchase deed can generate purchase-deed AJD payable by the buyer as acquirer; the deed of loan secured by a mortgage can generate mortgage-loan AJD, and in that second deed the taxpayer is the lender. The difference does not depend on who receives the loan money, but on the nature of the taxed document.
The variable rate for purchase-deed AJD is approved by the Autonomous Community. If no regional rate has been approved, the state text contains a supplementary rule, but this guide does not turn it into a working figure or publish regional tables. To close the budget for a specific purchase, check the tax authority of the Autonomous Community where the tax is handled.
How does ITP/TPO work on a resale home?
A resale-home purchase is taxed under TPO when it qualifies as an onerous inter vivos transfer and is not absorbed by a transaction subject and not exempt from VAT. The person liable as taxpayer is the acquirer.
In the document workflow, TPO is part of Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos Documentados. The state fact sheet allows the explanation that the typical case between private parties falls within onerous transfers, and that in transfers of assets and rights the taxpayer is the acquirer. It also allows saying that the rate applicable to real estate is approved by the Autonomous Community, without publishing specific regional rates.
The self-assessment is filed and paid by the taxpayer. The TRLITPAJD refers deadlines and form to the regulation, and the state Regulation sets, as a general rule, thirty business days from the moment the act or contract is caused. Forms, competent office, online channels and management rules remain in the regional sphere, so they should be checked with the relevant regional tax authority before signing or immediately after.
Why are VAT and TPO not paid at the same time?
A transfer subject and not exempt from VAT is not taxed under TPO, without prejudice to AJD where it applies. The fact sheet also records that there are exceptions for certain real-estate transactions exempt from VAT.
The incompatibility avoids treating the same transfer as non-exempt VAT and as TPO at the same time. The VAT Law states that transactions subject to VAT will not be subject to the concept of onerous transfers, and the TRLITPAJD records the same idea for transactions subject to value added tax. The operational consequence is clear: first identify whether the transfer goes through VAT or TPO; then review whether the deed triggers AJD.
This guide does not enter into complex real-estate exemptions or waivers of exemption because the fact sheet only authorises the cautious framework. If a transaction does not fit the ordinary purchase of a new home with VAT or a resale home between private parties with TPO, the classification should be checked with the notary, the competent tax administration or a professional.
Who pays mortgage-loan AJD?
For deeds of loans secured by a mortgage, the AJD taxpayer is the lender since the reform introduced by Royal Decree-law 17/2018. In a bank mortgage, this shifts the tax to the bank or lender, not to the buyer as borrower.
This rule only resolves mortgage-loan AJD. It does not remove or change purchase-deed AJD on a new-home purchase, where the state taxpayer is the acquirer of the asset or right. So when reviewing a funds provision, ask for each item to be shown separately: VAT or TPO on the purchase, purchase-deed AJD if applicable, loan costs, and any other non-tax item.
| Item | Who bears or self-assesses under the state fact sheet | Who receives payment |
|---|---|---|
| VAT on a new home | The buyer bears the charged VAT amount | The seller or developer, through an invoice |
| TPO on a resale home | The acquirer is taxpayer and self-assesses | The competent regional tax administration |
| Purchase-deed AJD | The acquirer of the asset or right is the state taxpayer | The competent regional tax administration |
| Mortgage-loan AJD | The lender is taxpayer | Handled by the lender as tax debtor |
What happens with municipal capital-gains tax and IBI?
Municipal capital-gains tax belongs to the transferor in an ordinary sale, while IBI is determined by ownership at accrual, which is the first day of the calendar year. The state fact sheet does not allow stating an automatic statutory split of IBI between buyer and seller.
Municipal capital-gains tax, technically IIVTNU, taxes the increase in value of urban land shown by the transfer where applicable. The applicable text includes non-subjection where absence of an increase in value is established. In onerous transfers, the taxpayer is the person transferring the land; therefore, in an ordinary sale, the seller or transferor. The relevant exception in the fact sheet is that, if the transferor is an individual not resident in Spain, the acquirer may be substitute taxpayer.
IBI is built differently. The law sets the taxpayer as the person holding ownership of the right constituting the taxable event at accrual, and the tax accrues on the first day of the tax period, which is the first day of the calendar year. That gives the state working rule: look at who was owner on 1 January. Any private split agreed in the contract is outside this guide.
| Local tax | Publishable state rule | Point not to lose |
|---|---|---|
| Municipal capital-gains tax (IIVTNU) | In an onerous sale, taxpayer transferor | Non-subjection if absence of increase is proven; possible substitute if transferor is an individual non-resident |
| IBI | Taxpayer determined by ownership at accrual, the first day of the calendar year | No automatic statutory buyer-seller split is stated within this state fact sheet |
Where should regional rates be checked?
TPO and purchase-deed AJD rates should be checked with the tax authority of the competent Autonomous Community. This guide does not publish regional rate tables, reliefs, forms or filing platforms.
The verified state framework says that the variable AJD rate is set by the Autonomous Community, and that the TPO rate for real estate is also approved by the Autonomous Community. The state text contains supplementary rules if the Autonomous Community has not approved a rate for the case, but the fact sheet instructs not to turn those rules into a general table. For a buyer, the useful figure is not a generic number, but the administrative confirmation applicable to the home and place of filing.
The operational recommendation is to ask the notary or gestoría to identify the tax, the regional administration, the deadline and the form it will use. If you handle the filing yourself, check the regional tax authority website before preparing the self-assessment. That check is separate from mortgage comparison: you can review the payment, total cost and APRC (TAE; commonly APR) with the calculator, but transferred regional taxes require regional verification.
What practical review should be done before signing?
Before signing, separate the purchase, the loan and local taxes, and ask for each amount to show the taxpayer and payment recipient. That avoids mixing purchase-deed AJD paid by the buyer with mortgage-loan AJD that belongs to the lender.
- Identify whether the home is new or resale. For a new home, review VAT and possible purchase-deed AJD. For resale, review TPO and regional self-assessment.
- Separate the loan from the acquisition. Mortgage-loan AJD is paid by the lender as taxpayer; purchase-deed AJD, where it applies, follows a different rule.
- Confirm ITP/AJD deadlines. The state general deadline under the Regulation is thirty business days, with practical regional management.
- Ask about municipal capital-gains tax and IBI. Municipal capital-gains tax belongs to the transferor in an ordinary sale, with the substitute exception noted; IBI looks at ownership on 1 January.
- Review the finance cost separately. For the mortgage, compare APRC (TAE; commonly APR), the payment and total cost; review the FEIN (the Spanish binding offer document) separately from purchase taxes.
To fit these amounts into the total budget, also review the guide to mortgage costs, the home-buying checklist and the explanation of nominal rate versus APR.
Frequently asked questions
What tax applies if the home is new?
Under the state framework, the delivery of a new home fit for residential use is subject to VAT at 10%. The 4% rate is limited to VPO de régimen especial or public-promotion housing delivered by the developer. The purchase deed may also trigger AJD if the notarial, registry and tax-subjection requirements are met.
What tax applies if the home is resale?
A resale home is taxed under TPO when it qualifies as an onerous inter vivos transfer and no transaction subject and not exempt from VAT applies. The taxpayer is the acquirer. For ITP/TPO, the acquirer self-assesses and pays the competent regional tax administration, with the state general deadline of thirty business days.
Can VAT and TPO be paid on the same purchase?
Both are not paid on the same transfer when the transaction is subject and not exempt from VAT. In that case it is not taxed under TPO, without prejudice to the deed being subject to AJD if its requirements are met. The state fact sheet notes exceptions for certain VAT-exempt real-estate transactions.
Who pays mortgage-loan AJD?
Since the reform introduced by Royal Decree-law 17/2018, for deeds of loans secured by a mortgage the AJD taxpayer is the lender. That mortgage-loan AJD should not be confused with purchase-deed AJD, where the state taxpayer is the acquirer of the asset or right.
Summary
- New homes: state VAT at 10% for housing fit for residential use; 4% only for VPO de régimen especial or public-promotion housing delivered by the developer, under the verified terms.
- Resale homes: TPO for onerous transfers where no transaction subject and not exempt from VAT applies; the acquirer is taxpayer.
- VAT and TPO are not both paid on a transfer subject and not exempt from VAT, without prejudice to AJD where applicable.
- Purchase-deed AJD and mortgage-loan AJD are different: the first belongs to the acquirer if applicable; the second has the lender as taxpayer.
- Municipal capital-gains tax: in an ordinary sale, taxpayer transferor; IBI: ownership at accrual, which is the first day of the calendar year.
- Regional TPO/AJD rates, forms and management should be checked with each Autonomous Community tax authority.
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Official sources
- Law 37/1992 on VAT - arts. 4.Four, 88 and 91 (BOE, consolidated text).
- Royal Legislative Decree 1/1993, TRLITPAJD - arts. 7, 8, 27, 28, 29, 31.2, 51 and state TPO/AJD rules (BOE, consolidated text).
- Royal Decree 828/1995, ITPAJD Regulation - arts. 102.1 and 107.1 on self-assessment and general deadline (BOE, consolidated text).
- Royal Legislative Decree 2/2004, TRLHL - arts. 63, 75, 104 and 106 on IBI and IIVTNU (BOE, consolidated text).
- Royal Decree-law 17/2018 - reform of the taxpayer for mortgage-loan AJD (BOE).
- Royal Decree-law 26/2021 - reform of IIVTNU and non-subjection where there is no increase (BOE).
Notice: this guide and the calculator are for information and educational purposes. They are not financial, tax or legal advice, nor a loan offer. ITP/AJD rates, reliefs, forms and procedures depend on the Autonomous Community; always check the terms with the competent administration, the notary and, if needed, a professional.
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