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IVA and AJD when buying a newly built home in España

New-build taxation

For new-build properties, you must first establish whether it is a first transfer and then determine the relevant tax jurisdiction.

In the Spanish territory where IVA applies—the mainland and the Illes Balears—the first transfer of a home by the developer is generally subject to IVA. The deed may also be subject to the variable-rate charge of Actos Jurídicos Documentados (AJD), the rate of which depends on the autonomous community or competent territory.

View the quick answer All purchase taxes
Last reviewed8 August 2026
JurisdictionEspaña + autonomous communities / foral territories
ArticleTAX-003 · P0

Short answer

What IVA and AJD does a new home usually incur?

In the mainland and Illes Balears, the first transfer of a newly built home by the developer is generally taxed at 10% IVA. Special-regime or publicly promoted social housing may be taxed at 4% where the legal requirements are met. In addition, the sale and purchase deed may be subject to AJD, but the AJD rate must be checked with the competent autonomous community or territory.

IVA
10%

Standard residential rate

For transfers of buildings or parts of buildings suitable for residential use within the IVA territory, where the legally предусмотренный reduced rate applies.

VPO
4%

Qualifying cases

Applicable to certain special-regime or publicly promoted social housing, subject to regulatory requirements.

AJD
Variable

Territorial jurisdiction

The variable charge for notarised documents is calculated using the rate approved by the competent autonomous community, where the tax requirements are met.

Spain
Separate

Canarias, Ceuta and Melilla

They should not be calculated automatically using mainland IVA. Their indirect tax regimes require a specific review.

There is no single nationwide formula such as “10% VAT + X% AJD” that applies throughout España. VAT and AJD fall under different jurisdictions and territories; AJD must be determined by jurisdiction.

Step 1 · Classify the transaction

A newly completed home does not always qualify as a “first supply” for tax purposes

The Tax Agency distinguishes between first supplies and second or subsequent supplies. Generally speaking, a first supply occurs when the buyer acquires the home from the developer once its construction or refurbishment has been completed, although specific rules apply where the property has previously been used.

  • Check who is transferring the property: developer, company, private individual or another owner.
  • Determine whether the transfer is a first supply for VAT purposes.
  • Check whether there has been prior use and by whom, as this may affect the classification.
  • Do not determine the tax treatment solely based on the property's age, appearance or marketing.

The practical reference is the Tax Agency guidance on whether a purchase is subject to VAT or ITP.

Why this classification matters

A transaction that is not a first supply may receive different tax treatment. Before estimating taxes, the specific taxable event must be identified rather than simply asking whether the home is marketed as “new build”.

VAT on new homes

The 10% is the general rate for homes within the VAT territory, not a territorial rule for all of España

The VAT Act applies the reduced rate of 10% to supplies of buildings or parts thereof suitable for use as homes, including certain parking spaces and appurtenances transferred together. The tax is charged by the seller to the buyer.

01

VAT taxable base

As a general rule, the taxable base is based on the total consideration for the transaction, subject to the adjustments provided for under VAT legislation.

02

Parking spaces and appurtenances

The reduced rate may cover up to two parking spaces and appurtenances located in the same building when transferred together with the home and where the legal requirements are met.

03

Commercial premises

Business premises are not considered appurtenances to a home for these purposes. Residential tax treatment should not automatically be applied to other elements.

VAT territory

Spanish VAT applies in mainland Spain and the Balearic Islands. Canarias, Ceuta and Melilla fall outside its territorial scope and have their own indirect tax regimes. The relevant regional guide should be used for those locations.

Payments during construction

Advance payments may trigger IVA before the final deed

In transactions subject to IVA, where advance payments are made before completion, the tax becomes due when full or partial payment is received, on the amounts actually received. This is particularly relevant for developments with payment schedules during construction.

  • Separate the net price and IVA in each payment where applicable.
  • Keep invoices and proof of payment for all advance payments.
  • Reconcile the amounts paid with the price and IVA shown when the transaction is completed.
  • Do not set aside your entire tax budget for the notary appointment if taxable advance payments are involved.

Illustrative example of an advance payment

Taxable net advance payment€50.000
IVA at 10%€5.000
Total payment€55.000
IVA may be paid in stages This example assumes a residential transaction subject to the 10% rate within the IVA territory and does not replace the specific invoice or contract.

Documented Legal Acts

AJD does not have a single rate for all new-build purchases in España

The notarial documents category of ITPAJD may tax first copies of notarial deeds and records where they concern a valuable amount or item, include registrable acts or contracts, and are not subject to Inheritance and Gift Tax or to the Transfer Tax or Corporate Transactions categories. The variable rate is that approved by the competent autonomous community.

SUJ

When does it apply?

The legal requirements for the notarial document and the transaction must be met. It is not enough to add an AJD percentage to any document.

TIP

What rate applies?

The applicable rate depends on the autonomous community or, where applicable, the competent regional tax regime. It must be verified with the relevant territorial tax authority.

SJP

Who is the taxpayer?

For notarial documents, the general rule identifies the acquirer of the asset or right; the mortgage loan deed is subject to a different specific rule.

Do not confuse the AJD on the purchase deed with the specific rule for the mortgage loan deed. For loans secured by a mortgage, national legislation identifies the lender as the taxpayer.

Sample estimate

How to calculate without inventing a nationwide AJD rate

For a newly built home with a net price of €400.000 located in the Peninsula or the Balearic Islands and subject to the standard residential IVA rate, IVA can be calculated. AJD must remain variable until the applicable jurisdiction and conditions are known.

  • Net property price: €400.000.
  • IVA at 10%: €40.000.
  • AJD: applicable taxable base × verified regional rate.
  • Other costs—notary, registration, advice or financing—are not included in this tax example.

Safe formula

Net price€400.000
IVA 10%€40.000
AJDAJD base × regional rate
Taxes = €40.000 + applicable AJD The exact total cannot be finalised until the autonomous community or territorial regime has been determined.

Correct tax route

Six checks before accepting any calculation

Identify the transfer

Confirm whether it is a first transfer for IVA purposes and who is transferring the property.

Locate the property

Determine whether it is in IVA territory, Canarias, Ceuta, Melilla or a relevant foral jurisdiction.

Define the property type

Distinguish between homes, garages, storage rooms, commercial premises and other transferred elements.

Calculate IVA

Apply the applicable rate to the correct base and take advance payments into account.

Determine AJD

Check the rate, reliefs, base and procedure with the competent territorial authority.

Document the estimate

Separate taxes from other costs and retain the source and verification date.

New build vs resale

Do not use resale taxation for a first transfer

Question First transfer of a new home Home or usada / subsequent transfer
Main indirect tax IVA when the transaction is taxable and falls within its territory of application. The Transfer Tax for Consideration regime is usually analysed, subject to regional/foral rules.
Notarial AJD It may apply if the legal requirements are met; the rate depends on the territory. The treatment depends on the specific transaction and should not be copied from new-build properties.
Primary source VAT Act + AEAT + territorial AJD regulations. RDL 1/1993 + the relevant autonomous community/foral tax authority.
Common mistake Applying AJD from another autonomous community or adding an invented national figure. Applying residential VAT simply because the property appears new or refurbished.
General tax guide New build vs resale

Territorial regimes

The property's location determines which regional guide you should consult

The national article explains the framework. AJD rates, reductions, tax relief and procedures should be covered on the regional and foral pages, where they can be kept up to date without turning this guide into a table of percentages that quickly becomes outdated.

Common mistakes

Six mistakes that distort a new-build budget

01

Adding “10% + national AJD”

The standard VAT rate may be 10% in the relevant territory, but AJD must be determined territorially.

02

Confusing new with first supply

The tax treatment depends on the legal definition of the supply, not merely on the property's appearance.

03

Ignoring advance payments

In taxable transactions, advance payments may be subject to VAT before the final deed is signed.

04

Copying AJD from another region

Regional or provincial rates and benefits must not be transferred between jurisdictions.

05

Applying VAT to Canarias

Canarias, Ceuta and Melilla require verification of their specific indirect tax systems.

06

Combining the purchase and mortgage

The deed of sale and the mortgage loan deed are subject to tax rules that must be analysed separately.

Official sources

Legal and administrative sources used

Sources revisadas on 8 August 2026. Consolidated legislation and the websites of the relevant authorities should be checked again before using this information for a specific tax assessment.

BOE · Law 37/1992 Value Added Tax Act VAT legal framework, applicable rates, tax point, taxable base and real-estate transactions. Tax Agency I am buying a home: VAT or ITP? Official guide to distinguish between a first supply, housing or usada, and the indirect taxation of the purchase. BOE · RDL 1/1993 ITP and Documented Legal Acts National AJD framework, notarial documents, taxpayer, taxable base and territorial jurisdiction over the rate. Tax Agency VAT on real-estate transactions Institutional hub for VAT treatment in property transactions.

Related guides

Continue with the article that matches your question

Taxes when buying a home in España National hub for determining which tax applies based on the property and jurisdiction. Costs of buying a home Separates taxes from notary, Land Registry, advisory, financing and other costs. How to buy a home step by step Places taxation within the reservation, review, contracts, notary and post-sale process. New build or resale property Compare the process, documentation, guarantees, risks and general tax treatment.

Frequently asked questions

VAT and AJD when buying a new-build property

In mainland Spain and the Balearic Islands, supplies of buildings or parts thereof suitable for residential use that meet the reduced-rate requirements are generally taxed at 10%. There are qualifying cases, such as certain special-regime VPO or public housing developments, subject to a rate of 4%. The specific transaction must be verified.

This should not be assumed solely from the commercial label. It is necessary to determine whether the transfer constitutes a first supply for VAT purposes and to review, among other factors, who is selling and any previous use of the property.

There is no single national rate that deba be applied automatically. The variable AJD charge uses the rate approved by the autonomous community or competent territory when the legal requirements for the tax are met.

A first transfer subject to VAT is not simultaneously treated as a transfer for consideration subject to TPO for the same taxable event. However, the deed may be subject to AJD if its requirements are met.

Where the transaction is subject to VAT and advance payments are made, the tax becomes due when all or part of the price is received, on the amounts actually collected. The invoices and the development's payment schedule should be reviewed.

The regulations allow up to two parking spaces and appurtenances located in the same building to be included when transferred together with the property and the legal conditions are met. Commercial premises are not considered appurtenances for these purposes.

Nationality alone does not create a different general VAT rate for this purchase. For this guide, the determining factors are the type of transfer, the property and the jurisdiction. Other personal circumstances may be relevant for regional tax benefits and should be checked under the applicable regulations.

Mainland Spanish VAT should not be applied automatically. Canarias is outside the territory where Spanish VAT applies and uses its own indirect taxation system. The transaction must be reviewed under current Canary Islands regulations.

They should not be confused. The purchase deed and the mortgage loan deed are different legal acts. The regulations establish a specific rule for the taxpayer in relation to the mortgage loan.

First, confirm that the transaction is a first transfer, the property's tax location, the price and the items being transferred. Then calculate the applicable VAT and check with the regional or chartered tax authority the current AJD, its tax base, reliefs and procedure. The estimate should state the date and the sources used.

Important notice. This guide provides general information on the taxation of a new-build property purchase in España. It does not replace tax, legal or notarial advice tailored to a specific transaction. The AJD rate, tax reliefs, tax base, forms and deadlines may depend on the autonomous community, chartered territory and circumstances of the transaction. Always verify the current regulations and official instructions before filing or paying a tax.

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