ITP vs IVA Andalusia is the key tax distinction to understand when buying property in Spain in 2026, because it depends on whether the home is new-build or resale.
So, you have found your dream property on the Costa del Sol. Whether it is a villa in Marbella or an apartment in Mijas, the excitement is building. However, once you start crunching the numbers, you will likely encounter a mix of acronyms: ITP, IVA, AJD.
At Manzanares Lawyers, we know that for international investors, the Spanish tax system can initially seem complex. A common question we receive is: “Why is the tax rate different for this property compared to the one I saw yesterday?”
The answer lies in one simple distinction: Is the property brand new, or is it a resale?
Here is your 2026 guide to understanding purchase taxes in Andalusia.
1. Resale Properties: Transfer Tax (ITP)
If you are buying a “second-hand” or resale home, you do not pay VAT. Instead, you pay ITP, Impuesto de Transmisiones Patrimoniales, which is the Transfer Tax.
The Good News for 2026: A few years ago, Andalusia had a sliding tax scale that could reach up to 10% depending on the property price. Currently, the regional government maintains a simplified flat rate of 7% for the purchase of residential properties. This makes Andalusia one of the most tax-efficient regions in Spain for luxury buyers compared to other autonomous communities.
- Example: If you buy a resale apartment for €300,000, your ITP tax is €21,000 (7%).
For a practical overview of taxes when buying a home in Andalusia (resale vs new build), see the Junta de Andalucía guide.
2. New Build Properties: VAT (IVA) + Stamp Duty (AJD)
If you are buying a brand-new home directly from a developer (off-plan or key-ready), the tax structure is different. You will pay two distinct taxes:
- IVA (VAT): The current rate for residential properties in Spain is 10% of the purchase price. (Note: If you buy a commercial premise or a plot of land without a structure, this rises to 21%).
- AJD (Stamp Duty): Because new properties pay VAT, they are also subject to Actos Jurídicos Documentados (Stamp Duty). In Andalusia, the general rate is 1.2%.
- Example: For a new build villa of €300,000, you pay €30,000 in VAT (10%) plus €3,600 in Stamp Duty (1.2%).
3. Other Costs to Budget For
In addition to taxes, buyers should also budget for the other costs involved in completing a property purchase in Spain, including:
- Notary Fees: Fixed by law, based on the property price.
- Land Registry: To formally register the deed in your name.
- Legal Fees: Essential for ensuring the property is free of debts and illegalities.
The Golden Rule of Budgeting: As a general rule of thumb for 2026, we advise our clients to budget approximately 10% to 12% on top of the purchase price to cover all taxes and fees in Andalusia.
Why Legal Advice Matters
Taxes are just the mathematical part of the equation.
Before signing any private purchase contract, it is important to check the legal status of the property carefully.
A proper legal review can help identify issues such as:
- Outstanding debts
- Planning or licensing problems
- Registry discrepancies
- Other legal risks affecting the property
In some cases, reduced tax rates may also be available depending on the buyer’s circumstances, such as age or whether the property will be used as a main residence.
At Manzanares Lawyers, we provide a clear estimate of the taxes and costs involved before you sign anything, helping you plan with confidence.
Ready to Buy?
Before you put down a deposit, let us check the paperwork. Contact us today for a consultation on your potential purchase.
