Taxes when buying in Spain

1. Resale homes: transfer tax (ITP)

When buying a resale property you pay transfer tax (ITP). The rate is set by the autonomous community, usually in the 6–10% range of the price. Andalusia, for example, has a single rate, while the Valencian Community has a higher rate — check the current figures for the property’s region.

2. New builds: IVA and AJD

For new builds, VAT (IVA) is paid instead of ITP — 10% for housing — plus stamp duty (AJD), whose rate depends on the region (typically around 0.5–1.5%).

You also pay the notary, registration in the land registry and, if needed, a lawyer.

3. Annual taxes

• IBI — municipal property tax;
• non-resident income tax (IRNR) — payable even if the property is not let, on a notional income;
• when letting — tax on rental income; rates differ for residents of the EU/EEA and other non-residents;
• wealth tax — above thresholds that depend on the region.

4. What has changed for investors

From April 2025 Spain stopped issuing “golden visas” for property purchases. Other grounds are used for relocation now — for example a financially independent person visa or a digital nomad visa.

A purchase requires an NIE — a foreigner’s identification number. Zuvur will shortlist properties, and a partner lawyer can help with the paperwork.