Stamp duty in Spain: Complete guide for UK buyers

Disclaimer: The information in this article is for general informational purposes only and does not constitute financial, tax, or legal advice. See full disclaimer.

Spain does not apply stamp duty in the same way as the UK, but you still need to pay property transfer taxes when purchasing real estate. The amount you pay depends on the type of property and the region where it’s located. Because these taxes are set by Spain’s autonomous communities, buying property in Madrid isn’t taxed exactly the same as buying in Andalusia.

In this guide, we explain how stamp duty and property transfer tax work in Spain, how much you might pay, and what to expect as a UK buyer.

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What is stamp duty in Spain?

In Spain, stamp duty is known as Impuesto de Actos Jurídicos Documentados (AJD), a tax charged on certain notarised legal documents, including new property purchases and mortgage deeds.¹

However, if you’re buying a resale property in Spain, you need to pay a different transfer tax known as Impuesto sobre Transmisiones Patrimoniales (ITP), instead of AJD.

Do you pay stamp duty in Spain?

Yes, you pay the stamp duty or transfer tax in Spain shortly after signing the deed before a notary, under the rules of the region where the property is located.²

There are no restrictions for UK citizens to buy a property in Spain, but you must obtain a foreign identification number called NIE, and follow local tax requirements.

Note: Spain has recently discussed a proposed 100% property tax for non-EU buyers. If you want to understand what’s actually been proposed and whether it applies to you, read our complete guide below.

AJD vs. ITP: what’s the difference?

The difference between AJD and ITP taxes in Spain depends on whether the property is new or resale.

• Stamp duty or AJD applies when you’re buying a new-build property and is usually paid alongside VAT, locally called IVA, at the standard 10%.
• ITP applies when you’re buying a resale property from a private seller.

You never pay both. New properties are taxed with IVA and AJD, while resale properties are taxed with ITP in Spain.

You’ll also need to sign the purchase documents before a Spanish notary, who formally records the sale in a public deed. Notary and property registry fees are regulated by the government, so the prices are fairly standard. However, they are separate administrative costs, meaning they are paid on top of the stamp duty (AJD) or transfer tax (ITP) you owe.

How much is stamp duty in Spain?

Stamp duty in Spain, also known as AJD, ranges from 0% to 1.5% of the total purchase price plus the standard 10% VAT for new builds, depending on the region.³

On the other hand, to buy a resale house in Spain, you must pay what's called a transfer tax, known locally as ITP, ranging from 6% to 11% of the property price.⁴

Here is a quick overview of the average tax you need to pay to buy a new or second-hand property in Spain:

If you’re considering buying a house abroad as an investment, it’s also important to understand how these taxes fit into the broader costs of owning property overseas. You can explore this further in our guide below but all tax decisions should be made after thorough research and consultation with a qualified financial advisor.

How does stamp duty/AJD work in Spain?

Property transfer taxes in Spain are set by autonomous communities, which means rates vary depending on where you buy. The two main taxes are AJD for new-build properties and ITP for resale properties.

Here’s a quick overview of typical transfer tax and stamp duty rates in different Spanish regions:

If you’re buying property in Spain as an investment, the choice between a new build or a resale property can affect both your upfront taxes and long-term returns. You can explore this further in our guide on investing in property abroad.

Who has to pay stamp duty or property transfer tax in Spain?

In Spain, the buyer is responsible for paying the stamp duty or the transfer tax when purchasing real estate. This means you pay AJD if you’re buying a new-build property, or ITP if you’re buying a resale property.

The payment is usually arranged through your solicitor or gestor as part of the completion process after signing the deed before the notary.

However, know that the responsibility is ultimately yours as the property buyer, and you need to make sure the tax is paid and declared to the regional tax authority within the required deadline.

Without proof that the tax has been paid, the property cannot be registered in your name at the Spanish Land Registry, which is why this step is essential in the purchase process.

Do first time buyers have to pay stamp duty/AJD?

Yes. Spain does not have a nationwide exemption for first-time buyers, so most people purchasing property must still pay either transfer tax for resale properties or stamp duty with VAT for new-build homes.

However, some autonomous communities, such as Catalonia, offer reduced stamp duty or transfer tax rates to certain groups.⁵

These reductions may apply to young buyers often under 35, large families, buyers with disabilities, or those purchasing a primary residence below a certain value. The exact conditions and discounts depend on the region where the property is located.

For most UK buyers purchasing or investing in property in Spain on the open market, the standard regional rate will usually apply.

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When is stamp duty/transfer tax due?

You must pay the stamp duty (AJD) or transfer tax (ITP) in Spain within 30 days after your purchase to the regional tax authority.

If you’re transferring a large amount of money from the UK to complete the purchase or cover taxes, it’s important to plan the transfer carefully to avoid delays or unnecessary exchange costs.

Note: Before sending funds, it’s worth looking into the most efficient ways to transfer money when buying property overseas to avoid unnecessary costs.

Stamp duty/transfer tax exemptions

In Spain, full exemptions from AJD or ITP are uncommon, and most buyers will still need to pay the relevant tax.

Some reduced rates or exemptions may apply in specific situations, such as purchasing protected housing (VPO), certain regional schemes for young buyers, or family-related property transfers.⁶

FAQs about stamp duty in Spain

Can I live in Spain permanently if I buy a property?

No, buying property in Spain does not automatically grant permanent residency rights to UK citizens. You still need a valid residence visa or permit to live in Spain long-term, even if you own property there.

Do you pay property tax in Spain?

Yes, if you are a property owner in Spain, you need to pay an annual local property tax, known as IBI (Impuesto sobre Bienes Inmuebles), set by the municipality where the property is located.

Do the UK and Spain have a double taxation agreement?

Yes, the UK and Spain have a double taxation agreement to prevent the same income from being taxed twice. However, you may still need to declare property income or gains in both countries, depending on your tax residency.

Key takeaways

• Spain does not apply traditional stamp duty, but instead requires buyers to pay regional property transfer taxes based on whether the property is a new-build or a resale.
• New-build properties are subject to a stamp duty known as AJD, which ranges from 0% to 1.5% and is paid alongside a 10% VAT (IVA).
• Resale properties are subject to a transfer tax known as ITP, which ranges from 6% to 11% depending on the autonomous community where the property is located.
• The buyer is responsible for paying these taxes to the regional tax authority within 30 days of the purchase, and failure to pay prevents the property from being registered in the buyer's name.
• Sending large sums internationally to cover property costs can lead to high bank fees and hidden exchange rate markups. Wise offers a smart solution with transparent fees and mid-market exchange rates, helping buyers save money on big transfers.

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Sources used:

1. Sede.agenciatributaria.gob.es - Spain’s official tax agency on transfer tax and stamp duty
2. Administracion.gob.es - buying and selling property taxes in Spain
3. Rankia - stamp duty on documented legal acts (AJD) by autonomous communities in Spain
4. rankia.com - transfer tax rate in Spain by autonomous communities
5. gencat.cat – Catalonia's official regional tax authority website explains ITP/AJD taxes and reduced rates for young buyers
6. idealista.com - who is exempt from Property Transfer Tax (ITP)

Sources last checked on date: 5-Mar-2026