During a sale of new property neither the seller nor the buyer have to pay the property transfer tax (ITP 6% - 7%) , but there are 2 other taxes to pay:

1 – VAT , the tax is applied on the price depend on the type of the property sold.

7% on houses, flats
16% on garages, locales
4% on house that are legally protected

2- The second tax is the stamp duty AJD (Impuesto de Actos Jurídicos Documentados) of 0,5¨%

Example :

If you buy a new property to a developer for 60 000 euros , you will a VAT on that property of 4200 euros, in addition there is the stamp duty of 0,5 % - 300 euros

The VAT is applied directly on the sale price, the stamps duty have to be paid by the buyer within 30 days after the contract (escritura) has been signed.

Recap:

New property - taxes

VAT
Capital Gains Tax
Stamp duty

Resale property – taxes

Capital Gains Tax
Property Transfer Tax
(there is no VAT and stamp duty on resale property)

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