Buyer's Guide
What taxes you pay when buying a new build in Andalusia
When buying a new build from a developer in Andalusia you pay two taxes: 10% VAT on the price and 1.2% stamp duty (AJD) when you sign the deed. Add notary, land registry and, if you use one, a gestor, around 1% more. On a €400,000 home, budget roughly €48,000 in taxes and fees.
The two taxes when buying a new build
When you buy a new home directly from the developer, the sale is taxed with VAT, not transfer tax. It is a national tax and the developer charges it to you with each payment.
The standard rate for homes is 10%. Parking spaces (up to two) and a storage room bought together with the home are also charged at 10%. If you buy them separately, they pay 21%.
The second tax is AJD (stamp duty on documented legal acts). It is regional and applies to the deed. In Andalusia the general rate is 1.2% of the price before VAT.
Example: taxes on a €400,000 new build
| Item | Calculation | Approximate amount |
|---|---|---|
| VAT | 10% of €400,000 | €40,000 |
| Andalusian AJD | 1.2% of €400,000 | €4,800 |
| Notary | Official scale by price | €900-1,500 |
| Land Registry | Official scale by price | €500-900 |
| Gestor (optional) | Fixed fee | €300-600 |
| Total | €46,500-47,800 |
If you also take a mortgage, allow €300 to €600 for the valuation. Since 2019 the bank pays the stamp duty, notary and registry costs of the mortgage, and you only pay the valuation and your copy of the deed.
New build versus resale
If you buy from a private seller there is no VAT. You pay ITP transfer tax, which in Andalusia has been a flat 7% since 2021. On paper it looks cheaper, but think about what a new build gives you: LOE legal warranties, energy efficiency and nothing to renovate for years.
- New build: 10% VAT + 1.2% AJD = 11.2%.
- Resale: 7% ITP, with no VAT or AJD.
- In both cases: notary, registry and gestor on top.
Purchase costs that are not taxes
As well as taxes, other payments arrive in the first month. Budget for them so they do not surprise you just as you move in.
- Electricity and water connection: the new meter and deposit usually add up to €100-300.
- First community fees, sometimes with an initial levy for the reserve fund.
- Home insurance: €200-500 a year depending on size and contents.
- Furniture and appliances not included in the building specification.
Ask the developer in writing which appliances are included and whether the kitchen comes fitted. That detail changes your final figure a lot.
When you pay each tax
- At reservation and contract, the developer invoices the VAT on each amount.
- During construction, each stage payment also carries its 10% VAT.
- At completion, you pay the VAT on the balance and, within the following 30 working days, the AJD using the regional form 600.
- Notary and registry are paid when their invoices arrive, usually the following month.
If you buy with us, we prepare a schedule with every payment and its VAT so there are no surprises. And if the home will stand empty part of the year, also read about annual taxes for non-residents.
Frequently asked questions
How much VAT do you pay on a new home in Spain?
10% of the price for homes, plus parking spaces (up to two) and storage rooms bought with the home. Special-regime social housing pays 4%.
What is AJD and how much is it in Andalusia?
It is the stamp duty charged on the deed of sale. In Andalusia the general rate is 1.2% of the price before VAT.
Is a resale home cheaper because of the taxes?
On taxes, yes: 7% ITP versus 11.2% VAT plus AJD. But a new build usually saves on renovations and comes with legal warranties of up to 10 years.
Do developers' advertised prices include VAT?
Usually not. Starting prices are published before VAT, so add 10% before comparing them with your budget.
Official sources
- Spanish Tax Agency: VAT on the sale of homes
- Andalusian Tax Agency: ITP and AJD (form 600)
- Building Act (LOE), Official State Gazette
General information checked on the date shown; it does not replace advice from a lawyer or tax adviser for your case.
