You will pay certain property taxes when you buy property in Spain. The biggest property tax is the ITP - Impuesto de Transmisiones Patrimoniales - which is paid on the resale of existing property sold by one individual to another. It doesn't apply if you purchase a new property from a developer - though in that case you'll have to pay IVA (value added tax) instead.

The rate of ITP isn't set nationally, but at regional level. It averages 8-10%, with the highest rates in Cataluña and Extremadura (up to 11%), and the lowest in Rioja (7%), Madrid and Navarra (6%) and the Basque Country (4%). Of most interest to most foreign purchasers are the regions of Murcia (8%), Andalucia (8-10%), and Valencia (10%). Exemptions can reduce the tax by half, but don't apply to most second property acquirers - for instance, tax breaks for first time buyers, large families, under-35s, and the handicapped.

AJD - actos juridicos documentados - applies to all acts formalised in public documentation in front of a notary, such as your deed of sale. There's a fixed rate for resale properties on which you already pay ITP, but on new properties, there's a sliding scale. Again, each region sets its own tax, but most are between 0.5% and 1.5%. Buyers used to have to pay AJD on mortgages, too, but from November 2018, it's paid by the lender not the purchaser.

Expenses when buying an apartment in Sant Andreu district of Barcelona (EUR 280,000, 57 sq.m.)

Taxes	Expenses
ITP (property transfer tax for resale properties) – 11% (Catalonia)	EUR 30,800
AJD (stamp duty tax) – 1.5%	EUR 4,200
Notary fees – 0.5%	EUR 1,400 (but they say the average payment is EUR ~800)
Registration fee – 1%	EUR 2,800
Real estate agent fee ~3%	EUR 8,400
Total	EUR 47,600

Buying new property

anthony-esau-173126-unsplash If you're buying a new property from a developer, you won't pay ITP but you'll pay IVA (Impuesto sobre el Valor Añadido) or value added tax instead. Generally, it is set at 10%, apart from viviendas de proteccion oficial (low priced, publicly funded housing) which has the IVA set at 4%. It's a massive 21% on commercial properties and plots of land.

You'll also need to plan for notary's fees of 0.5%-1% of the price, and a land registration fee of 1%. Added together, this could amount to a maximum 15% of the purchase price, so be sure to build these taxes and costs into your calculations when you're setting your budget.

Buyers should also be careful to ensure any non-resident vendor has paid their capital gains tax (3% of the purchase price is usually withheld from the price by the notary to cover tax liabilities). If the capital gains tax remains unpaid, the tax authorities could have a lien over your property to the extent of the unpaid tax.