THE BASICS
ITP, IVA and AJD are three different taxes
These abbreviations are often used interchangeably when discussing a Spanish property purchase, but they serve different purposes. The key question is whether you are buying a resale property or a property that is treated for tax purposes as a first supply by a business or property developer.
Impuesto sobre Transmisiones Patrimoniales
Property transfer tax generally paid by the buyer when purchasing a resale property. The rate is largely determined by the autonomous community.
Impuesto sobre el Valor Añadido
Spanish VAT. The first supply of a standard new-build home by the developer is generally subject to 10% IVA.
Actos Jurídicos Documentados
Tax on certain notarised documents. For a new-build purchase, AJD is generally charged alongside IVA on the notarised purchase deed.
Resale property: usually ITP. Standard new build from the developer: usually IVA plus AJD. The specific deed, seller, previous use and legal structure ultimately determine the tax treatment.
RESALE PROPERTY
ITP in the Valencian Community from 1 June 2026
For properties on the Costa Blanca — including property in the provinces of Alicante and Valencia — Valencian legislation is relevant. For taxable events from 1 June 2026, the general ITP rate on property is 9%.
If the value of the transferred property or right exceeds €1,000,000, a rate of 11%generally applies. This is not a stepped rate where only the portion above one million euros is taxed at 11%: the applicable legal classification must be assessed for the transaction as a whole.
The date of the taxable event matters. When legislation changes, a deed executed before or after the effective date may fall under a different rate. Have not only the reservation contract but also the planned completion date checked from a tax perspective.
Official source: Agencia Tributaria Valenciana — property purchase.
TAX BASE
ITP is not always calculated simply on the agreed purchase price
When buying a resale property, the tax authority does not look only at the amount stated in the purchase deed. The Spanish cadastral valor de referencia may operate as a minimum tax base.
If a property is stated in the deed at €300,000 but the applicable reference value is €335,000, ITP may generally be calculated on €335,000. If the purchase price is higher than the reference value, the higher purchase price will generally be relevant.
If the property does not have a certified reference value, statutory alternatives apply, including the declared value, agreed price and market value. A low purchase price therefore does not automatically mean an equally low tax base.
Check the valor de referencia before buying.A difference between the asking price, purchase price and tax reference value can materially change your budget. Also have it assessed whether the reference value can be challenged in cases involving unusual condition, unauthorised extensions or a special location.
Background: Agencia Tributaria Valenciana — valor de referencia.
NEW BUILD
When do you pay 10% IVA on a property?
For VAT purposes, a property is not considered “new” solely because of its construction year. The key concept is the tax treatment of the first supply. The sale of a completed property by the developer is generally subject to IVA when it qualifies as that first supply.
For a standard residential property, the rate in 2026 is generally 10% IVA. A rate of 4% may apply to certain officially protected homes under a special regime or public promotion.
Standard residential property
The usual rate for the first supply of a home by the property developer.
Certain social housing
Only for legally defined protected housing; not for standard commercial new-build property.
Parking spaces and annex
The residential rate may include up to two parking spaces and one jointly supplied annex when the applicable conditions are met.
When is a property no longer “new” for tax purposes?
The Spanish Tax Agency describes, among other cases, a situation where a developer has continuously rented a completed property to other people for two years or more. A later sale to a different buyer may then qualify as a second supply, which can shift the treatment from IVA to ITP. If the property is instead purchased by the sitting tenant, the outcome may be different.
For turnkey projects, resales by a company, off-plan purchases and long-term rented new builds, make sure the reason for applying IVA or ITP is explicitly documented.
Official guidance: Agencia Tributaria — IVA or ITP when buying a property.
NOTARISED DEED
AJD: the tax that often applies alongside IVA on new builds
AJD is not a second VAT charge. It is a tax on certain notarised documents that record a transaction with an assessable value and can be entered in a public register. This is why AJD often applies on top of IVA when buying a new-build property.
General AJD rate from 1 June 2026
1.4%for example, on a second home or holiday property where no special rate appliesQualifying main residence
0.1%on first copies of deeds documenting the purchase of the buyer's own qualifying main residenceSpecial cases
2%including certain property transactions where an IVA exemption is waivedThe reduced 0.1% rate does not automatically apply simply because you intend to live in the property yourself. The Spanish tax concept of vivienda habitual is subject to conditions relating to actual occupation and permanence. A holiday home or second residence will not normally qualify.
AJD on the mortgage is a separate issue
Since the national legislative change in 2018, the lender is the taxpayer liable for AJD on a mortgage deed. This does not mean that all AJD disappears for the buyer. When buying a new build, the buyer may still owe AJD on the separate purchase deed.
Rates: consolidated Valencian tax law, Articles 13 and 14. Mortgage deed: Real Decreto-ley 17/2018.
WORKED EXAMPLES
What do these rates mean for your budget in practice?
The figures below are simplified examples for property in the Valencian Community with a deed executed from 1 June 2026. They assume that the stated purchase price is also the relevant tax base and that no reduction, exemption or other special regime applies.
Example 1: resale property at the general ITP rate
| Tax base | Rate | Indicative ITP | Explanation |
|---|---|---|---|
| €250,000 | 9% | €22,500 | General ITP rate |
| €400,000 | 9% | €36,000 | General ITP rate |
| €750,000 | 9% | €67,500 | General ITP rate |
| €1,200,000 | 11% | €132,000 | Value above €1 million |
Example 2: standard new build as a second home or holiday property
In this example, we use 10% IVA and the general Valencian AJD rate of 1.4%.
| Purchase price | 10% IVA | 1.4% AJD | Total IVA + AJD |
|---|---|---|---|
| €250,000 | €25,000 | €3,500 | €28,500 |
| €400,000 | €40,000 | €5,600 | €45,600 |
| €600,000 | €60,000 | €8,400 | €68,400 |
Example 3: new build qualifying as a main residence
If the purchase deed genuinely qualifies for the 0.1% rate for a qualifying main residence, AJD in the same examples is €250 on a tax base of €250,000, €400 on €400,000 and €600 on €600,000. The 10% IVA remains payable in this simplified example.
EXCEPTIONS
When can a reduced ITP rate apply?
The Valencian Community has several reduced ITP rates. These schemes are aimed at specific buyers, property types and uses. They are not automatically available to every buyer who is young, has a family or is moving permanently to Spain.
Buyers under 35
For a first qualifying main residence, a 6% rate may apply where the value is up to and including €180,000, and an 8% rate above €180,000, provided the statutory income and documentation requirements are also met.
Certain protected housing
Similar thresholds and additional requirements may apply to officially protected housing under the general regime, including use as a first main residence.
Specific social circumstances
Rates of 3% or 4% may apply to certain protected housing, large families or single-parent families, qualifying disabilities and victims of gender-based violence, depending on factors including property value, income, ownership share and supporting evidence.
The €180,000 threshold, the definition of a first main residence, income limits, age on the relevant date and the ownership share acquired must all be checked carefully. Applying a reduction incorrectly can lead to an additional tax assessment and interest.
PRACTICAL ADVICE FROM NORDIC MOVE SPAIN
Before signing a reservation or purchase contract, ask in writing which tax treatment your adviser is applying, which legal provision it is based on and which documents are required. Do not leave this until the day of the notary.
FILING AND PAYMENT
Who pays the tax, and when?
Before signing
Check the property type, seller, first or subsequent supply, valor de referencia, intended use and any potentially reduced rates.
At purchase
On new builds, IVA is generally paid to the seller or developer. On resale property, the buyer's ITP liability arises.
Within one month
In the Valencian Community, the relevant documents or tax returns generally need to be filed within one month. Modelo 600 is commonly used for ITP and AJD.
Registration and records
Keep the tax return, proof of payment, deed, reference value, invoices and evidence supporting any reduction in your purchase file.
The Valencian online application processes one taxpayer per form. Where there are several buyers, a separate return may therefore be required for each ownership share. Make sure the ownership proportions in the deed, tax return and payment all match.
Filing information: Agencia Tributaria Valenciana — Modelo 600.
AVOIDING RISK
Seven common mistakes involving ITP, IVA and AJD
- Calculating only from the purchase price.The valor de referencia can result in a higher ITP tax base.
- Calling a property “new” without a tax check.Construction year, first supply and previous rental use are not the same thing.
- Forgetting AJD on a new build.A budget may include 10% IVA but still omit a possible 1.4% AJD charge.
- Automatically applying the 0.1% AJD rate.A second home or holiday property does not automatically qualify as a main residence for tax purposes.
- Assuming a reduced ITP rate based on a single factor.Age, property value, income, use, documentation and ownership share may all be relevant.
- Ignoring the date of the deed.Valencian rates changed on 1 June 2026.
- Confusing taxes with total buying costs.Legal, technical, notarial and registration costs are in addition to the taxes.
BUYER ASSISTANCE
From a tax estimate to a secure purchase file
A correct tax calculation is one part of a secure property purchase. Nordic Move Spain brings the practical steps together: from choosing the region and property to coordinating with independent legal and technical professionals, the notary, translators, contractors and other parties involved.
This means that before signing, you can see not only the asking price but also the likely tax base, taxes, additional costs, legal considerations and technical risks.
PERSONAL BUYER ASSISTANCE
More certainty. One trusted point of contact.
Discuss your property, budget and timeline before making a legal or financial commitment.
FREQUENTLY ASKED QUESTIONS
FAQ about ITP, IVA and AJD in Spain
Do I pay both ITP and IVA when I buy a property in Spain?
Normally, no. When buying a resale property, the buyer generally pays ITP. On the first supply of a new-build property by the developer, the buyer generally pays IVA and, in addition, AJD on the notarised purchase deed. The legal classification of the transaction is decisive.
How much is ITP in the Valencian Community in 2026?
For taxable transactions from 1 June 2026, the general ITP rate in the Valencian Community is, in principle, 9%. If the value of the transferred property exceeds €1,000,000, the rate is generally 11%. Reduced rates are available for certain buyers and properties, subject to strict conditions.
How much IVA do I pay on a new-build property in Spain?
The first supply of a standard new-build home by a developer is generally subject to 10% IVA. A 4% rate may apply to certain types of social housing. The residential rate may also cover up to two parking spaces and one annex when they are supplied together with the home and are located in the same building or complex.
How much is AJD in Valencia in 2026?
In the Valencian Community, a general AJD rate of 1.4% applies to many notarised property deeds from 1 June 2026. A rate of 0.1% may apply to a deed documenting the purchase of a qualifying main residence. Other specific situations may be subject to a 2% rate.
Is ITP calculated on the purchase price or the valor de referencia?
For property, the cadastral valor de referencia is important. If the agreed purchase price or declared value is higher, the highest relevant value is generally used as the taxable base. If no applicable reference value exists, other statutory valuation rules apply.
When must Modelo 600 be filed?
In the Valencian Community, the general filing period for these transactions is one month from the date on which the taxable act or agreement takes place. Where there are several buyers, a separate return may be required for each taxpayer.
Does the buyer pay AJD on the mortgage?
For a mortgage deed, the lender has been the taxpayer liable for AJD on the mortgage since the 2018 legislative change. This is separate from any AJD the buyer may owe on the purchase deed when buying a new-build property.
Are ITP, IVA and AJD all of the additional purchase costs?
No. In addition to taxes, there may be notary, land registry, registration, legal, technical, banking and translation costs. Renovation, utility connections, insurance and municipal charges may also be relevant. Obtain a complete cost estimate before signing.
SOURCES AND CURRENCY
Official sources used for this guide
The tax information was updated on 23 July 2026 and focuses on property purchases in the Valencian Community. Different ITP and AJD rates may apply to property in another autonomous community.
- BOE — consolidated Law 13/1997 of the Valencian Community
- Agencia Tributaria Valenciana — property purchase
- Agencia Tributaria — IVA or ITP when buying a property
- Agencia Tributaria Valenciana — valor de referencia
- Agencia Tributaria Valenciana — Modelo 600
- BOE — AJD on mortgage loans
This guide provides general information and does not constitute legal, tax, financial or notarial advice. Rates, conditions and interpretations may change. Have your specific transaction reviewed by a qualified independent professional before signing.