Stamp Duty in Spain When Buying a New Property
Stamp duty in Spain (or Actos Juridicos Documentados, AJD) is a property tax for new property buyers in Spain. It’s worth understanding how it works if you want to avoid paying more taxes than necessary.
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When do I need to pay stamp duty?
You need to pay Stamp duty when you purchase a new property, whether it’s a house, an apartment, land or commercial premises.
Stamp duty is mainly charged on notarial instruments and records documenting economic transactions that need to be registered in public registries (such as company, land, and industrial property registries).
Stamp duty is also charged on court, administrative, and certain commercial documents.
When don’t I need to pay stamp duty?
There is no Stamp duty on products where you need to pay transfer taxes or capital duty. These are products such as shares, securities, and resale property.
How much do I need to pay?
The stamp duty rates in Spain vary depending on the type of transaction and the value of the assets involved.
The stamp duty rate is usually between 0.5 % and 1.5 %, depending on where it is situated.
Who pays the stamp duty?
The buyer pays stamp duty, and if a deposit is paid before the sale is completed, it will be taxed at the point of payment.
Are there any other taxes I need to pay when buying property in Spain?
Yes, when you buy a new property, you will also need to pay VAT (IVA in Spanish). This is a tax on the property’s value, which is usually around 10 %.
Does the stamp duty include the notary cost?
No, the notary fees (fixed fee) and legal fees (around 1%) are not included in the stamp duty, and you will need to pay for these separately.
Another fee that is not included in the land registry fee. This is paid when the property is registered in your name and costs around 0.6% of the property’s value.
A word from SublimeSpain
We hope this article gave you a good understanding of the stamp duty in Spain. If you have any more questions, don’t hesitate to contact our team at SublimeSpain. We can help you with buying property, taxation and company formation.
