Spain property taxes explained: ITP, IVA, IBI and plusvalía
The four Spanish property taxes every buyer needs to understand — who pays what, when, and how much — with 2026 regional rates.
Spanish property tax catches almost every foreign buyer off guard. Not because the rates are extreme — most aren't — but because there are four separate taxes, collected by three different levels of government, and the one you owe depends on whether the property is resale or new build, who's selling, and where the property sits on a map.
This guide walks through all four, with current (2026) rates, who actually pays each one, and when the money changes hands. By the end you'll be able to budget your total purchase cost to within €500.
The four taxes, at a glance
| Tax | Who pays | When | Typical rate |
|---|---|---|---|
| ITP (resale only) | Buyer | At completion | 6–10% of price |
| IVA + AJD (new build only) | Buyer | At completion | 10% + 0.5–1.5% |
| Plusvalía municipal | Seller (usually) | Within 30 days of sale | Varies — often €500–€8,000 |
| IBI | Owner, every year | Annually | 0.4–1.1% of valor catastral |
You pay either ITP or IVA+AJD — never both. Plusvalía and IBI are separate layers.
1. ITP — Impuesto sobre Transmisiones Patrimoniales
ITP is the transfer tax on resale property. It applies when you buy from a private individual (or a company selling a second-hand property that has already been occupied). It's the single biggest line item on most Spanish property purchases after the property itself.
Who pays it
The buyer, always. Non-negotiable.
How much
ITP is a regional tax. Each autonomous community sets its own rate. Roughly:
| Region | ITP rate (standard) |
|---|---|
| Madrid | 6% |
| Navarra | 6% |
| Basque Country | 4% (within limits) |
| La Rioja | 7% |
| Andalucía | 7% |
| Balearic Islands | 8–13% (sliding scale) |
| Canary Islands | 6.5% |
| Catalonia | 10% (11% over €1M) |
| Valencian Community | 10% |
| Murcia | 8% |
| Galicia | 9% |
| Asturias | 8% |
| Castilla-La Mancha | 9% |
| Castilla y León | 8% |
| Extremadura | 8% |
| Aragón | 8% |
| Cantabria | 9% |
Many regions offer reduced rates (4–6%) for young buyers (under 35), large families, people with disabilities, or purchases under certain price thresholds. If any of these might apply, ask your lawyer to check.
What it's calculated on
Officially, ITP is based on the higher of: (a) the purchase price declared in the deed, or (b) the valor de referencia set by the Catastro (the Land Registry's reference value). The valor de referencia was introduced in 2022 specifically to stop buyers under-declaring. If the deed price is below the reference value, you pay ITP on the reference value and can appeal later — but most people don't win.
When it's due
Within 30 working days of signing the deed at the notary. Your lawyer (or a gestor) files form Modelo 600 at the regional tax office and pays the tax. Miss the deadline and you'll owe surcharges of 5–20%.
2. IVA + AJD — new builds only
If you're buying a brand-new property directly from a developer (i.e. nobody has ever lived in it since construction), ITP doesn't apply. Instead, two other taxes do:
- IVA (VAT): 10% on residential property nationwide, 21% on plots of land and commercial property. The Canary Islands use IGIC at 7% instead of IVA.
- AJD (Actos Jurídicos Documentados — stamp duty): 0.5–1.5% depending on the region
Both are paid by the buyer. IVA is invoiced by the developer at completion; AJD is filed and paid at the regional tax office, like ITP.
Combined, new-build buyers typically pay 10.5–11.5% in purchase taxes, slightly more than ITP in low-tax regions like Madrid but similar to Catalonia or Valencia.
3. Plusvalía municipal
Officially called Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana (IIVTNU), but nobody outside a tax office uses that name. Plusvalía is a municipal tax on the increase in the land's value between when the seller bought it and when they sell it to you. It's charged by the town hall (ayuntamiento).
Who actually pays
Legally, it's the seller's obligation. In practice:
- Resident Spanish sellers almost always pay it
- Non-resident sellers — this is the trap. By law, if the seller is a non-resident and doesn't pay, the tax office can come after the buyer to recover it. Your lawyer will normally insist on retaining the plusvalía amount from the purchase price at the notary and paying it on the seller's behalf. If your lawyer doesn't do this, get a new lawyer.
How much
Varies wildly by municipality. A small apartment might owe €500–€2,000 in plusvalía; a villa on a large plot after 30 years of ownership could owe €15,000+. There's no national formula.
Since a 2021 Constitutional Court ruling, sellers can opt between two calculation methods — an "objective" one (based on the valor catastral and years held) and a "real" one (based on the actual land-value gain). If the property sold at a loss, you owe nothing. Your lawyer will run both calculations and use the lower.
When it's due
Within 30 days of the sale.
4. IBI — Impuesto sobre Bienes Inmuebles
IBI is the annual Spanish equivalent of council tax / property tax. It's billed by the town hall to whoever owns the property on 1 January of each year.
Who pays
The owner on January 1. If you buy in June, the seller has already paid that year's IBI and some deeds include a clause apportioning it — your lawyer will check.
How much
0.4–1.1% of the valor catastral per year. The valor catastral is the government's administrative value for the property — typically much lower than the market price (often 30–70%). For a €300,000 apartment, annual IBI is usually €400–€900.
When it's due
Each municipality sets its own billing window (usually August–November). Set up a direct debit or you'll get late-payment surcharges.
Non-resident income tax (the fifth tax nobody mentions)
Even if you're a non-resident who never rents out your Spanish property, Spain still imputes a small notional income for it and charges you income tax on that. This is the IRNR (Impuesto sobre la Renta de No Residentes).
- Calculated as 1.1% of the valor catastral (or 2% if the valuation hasn't been updated in 10+ years)
- Taxed at 19% for EU/EEA residents, 24% for everyone else
- Filed annually using Modelo 210
- Typical bill: €150–€600 per year
If you rent the property out, you pay IRNR on the actual rental income instead — 19% for EU/EEA, 24% otherwise, with limited deductions for non-EU owners.
How it all adds up — a worked example
Buying a €350,000 resale flat in Valencia (Valencian Community):
- Purchase price: €350,000
- ITP (10%): €35,000
- Notary: ~€800
- Land Registry: ~€500
- Lawyer: €2,500
- Mortgage arrangement + valuation (if any): ~€4,000
- Total: ~€42,800 above the purchase price
Then annually:
- IBI: ~€600
- Community fees: €1,200–€2,400
- Non-resident income tax: ~€300
- Home insurance: ~€350
Same €350,000 purchase in Madrid:
- ITP (6%): €21,000
- Everything else roughly the same
- Total: ~€28,800 above the purchase price
A €14,000 difference just from crossing a regional border.
What to do next
- Before you start viewing, decide which region you want to buy in and add the regional ITP rate to your effective budget.
- When making offers, budget 10–13% on top of the price for all costs combined.
- At completion, your lawyer handles ITP/IVA/AJD. Make sure plusvalía is retained if the seller is non-resident.
- After completion, set up direct debits for IBI, community fees, and utilities on day one.
For the full purchase process, see our 2026 guide to buying property in Spain as a foreigner. For the NIE step, which unlocks everything else, see the NIE application guide.
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