Spanish taxes when buying a second residence

When buying a second residence in Spain, on top of the purchase price, you should count on a cost rate between 10% and 15%. This percentage includes taxes (VAT or transfer tax), notary fees, registration fees and legal guidance. The exact percentage depends on two crucial factors: the region you are buying in and whether it is new construction or existing property (resale).

1. The Difference between New Construction and Existing Property

Direct Answer: Tax treatment in Spain is strictly separated based on the state of the property. For new construction, you will pay IVA (VAT) and stamp duty (AJD). For existing property, you only pay ITP (Transfer Tax). 

New building: IVA and AJD

When you buy a property directly from the developer (first occupancy), this is subject to Spanish VAT, or IVA (Impuesto sobre el Valor Añadido).

• The tariff: Throughout Spain (mainland and Balearic Islands), the IVA is 10% on the purchase price. (Note: In the Canary Islands, the IGIC of 7% applies).

• Storage: On top of the IVA there is always the Stamp Duty, or AJD (Actos Jurídicos Documentados). This varies by region, but is generally between 1.2% and 1.5%.

Existing Property: ITP

Are you buying a property from a private individual (resale)? If so, you will not pay VAT, but Transfer Tax, or ITP (Impuesto de Transmisiones Patrimoniales).

• No AJD: When paying ITP, there is no separate stamp duty payable on the purchase deed.

• Regional differences: Unlike the national VAT, the ITP is determined by the autonomous regions.

Expert Insight: "Many Belgian buyers make the mistake of calculating their budget based on fixed percentages. In regions such as Valencia, the difference between an old rate and the current rate can save thousands of euros. Always calculate with the current regional tables is crucial." 

2. Regional Tax Rates: Where do you pay what?

The location of your property directly determines the amount of the ITP (on resale). As Spain is made up of autonomous regions, rates vary considerably.

Below is an overview of the most popular regions for Belgian investors:

3. Additional Costs: Notary, Register and Lawyer

Besides taxes to the tax authorities, you will need to budget for administrative and legal matters. For this, count on approximately 3,000 to 5,000 euros, depending on complexity and purchase price.

• Notary fees: The Spanish notary (Notario) charges a fee based on a legal scale, related to the value of the property. Count on €2,000.

• Registration fee: Registering the deed in the Spanish property register (Registro de la Propiedad) is mandatory for legal certainty. Count on €800.

• Legal guidance: Engaging a specialised law firm such as Confianz is essential. After all, the notary in Spain has no obligation to investigate as in Belgium. Your lawyer will check debts, illegality and permits. Expect around 1% of the purchase price plus VAT.

• Spanish mortgage: If you are considering taking out a mortgage loan to finance your home, it is best to take extra costs into account. Find the cost of a mortgage in Spain here.

4. Note: The 'Plusvalía Municipal'

Direct Answer: The Plusvalía is a municipal tax on the increase in value of land, which is legally imposed by the seller must be paid.

However, in practice (and especially in older contracts), sellers sometimes try to pass this cost on to the buyer.

• Legal advice: Never blindly accept a contract stating that all charges and taxes be for the buyer ("gastos según ley" is the safe wording). You should remove this from the contract if it is charged to the buyer.

Frequently asked questions (FAQ)

What is the total cost of buyer in Spain in 2025?

You should count on a total percentage of 10% to 15% on top of the purchase price. In regions with low ITP (such as Andalusia with 7%), you are closer to 10-11%. In regions with high ITP (such as Valencia with 10%) or new construction (10% IVA + 1.5% AJD), you are closer to the 13-15%.

Do I pay tax in Belgium on my second residence in Spain?

No, you do not pay purchase tax in Belgium. However, you do have to declare the Spanish property in your Belgian tax return. Since 2022, a Cadastral Income (KI) allocated to your foreign property. You are taxed on the basis of this KI, but due to the double taxation treaty with Spain, you enjoy a tax reduction (progression allowance).

Is new construction more fiscally advantageous than existing property?

Generally speaking, existing property (resale) more tax-efficient in regions such as Andalusia (7% ITP vs 11.2% IVA+AJD). In regions such as Costa Blanca (Valencia), the difference is smaller, as the ITP there is also 10%, similar to the 10% IVA for new builds (excluding stamp duty).

When should Spanish purchase taxes be paid?

Taxes (ITP or IVA/AJD) should usually be within 30 days After signing the notarial deed (the Escritura) must be paid. Late payment results immediately in fines and interest from the Spanish tax authorities (Hacienda). In some regions, such as Andalusia, the term is 60 days.

About the author: Glenn Janssens is a lawyer specialising in Spanish real estate transactions and tax regulations. Since 2017, he has been helping Belgian and Dutch individuals and entrepreneurs to safely purchase and structure real estate in Spain. He guides files from A to Z: from due diligence, ownership and tax control to estate planning and optimisation for residents and non-residents. Thanks to his years of experience, hundreds of handled files and focus on transparent communication, Glenn makes complex Spanish legislation understandable and practically applicable for every property buyer.

Update: December 2025