The Cost Of Buying A New-built In Spain: Extra Levies In 2022


Buying a house in Spain can be a positive background and a muted horror for some reasons, particularly for investors from abroad who move to another state and acquire the first housing in Spain. Remember that besides the cost of the property, it is necessary to take into account other costs and expenses, such as, for instance, tax on property in Spain and extra payment for a notary. If you want to buy houses for sale in Madrid or in Spain as a whole, let’s get an insight into taxes and fees for 2022.

Mortgage in Spain

Mortgage lending is a big expenditure item when buying a property in Spain, so it is necessary to considerately carry out your calculations not to run into sudden unexpectedness. The Spanish banks usually provide financing up to 80% of the property value. This means that you need to have 20% of the apartment price in order to deliver an initial payment. However, there is more to come: in Spain there are a number of other costs and property taxes necessary to consider and pay in order to complete the transaction before you can own a new house.

How much should be allowed for additional expenses?

To pay for property appraisal, notary, registration and related taxes, realtors suggest to have a reserve from 10% to 12% of the housing value, according to the price and place of property. This amount is aside from the 20% required for the initial payment. Even if housing credit is not required, these extra levies should be paid. These are statutory expenses.


One of the expenses is the notary fee. This kind of fee in Spain is subject to the state, so the cost of services is constant. So, for a €100,000 apartment, you will have to pay by about €850.

Cadastral registry

Registration of notarized deeds costs money too. Again, these fees are fixed by Spanish law and entirely attached to the property value. As practice shows, it takes from €400 to 700.


The property buyer should have spare money to pay Spanish duties. The rate is linked to the house price.

If a brand-new house is bought in Spain, then more taxes will be paid. This is due to the fact that new-builts are liable to VAT (IVA in Spanish). In 2022, VAT is 10% of the value. Otherwise stated, an additional €10,000 is necessary when buying a €100,000 house and €25,000 when buying a €250,000 housing.

Remarkably that this levy is less in the Canary Islands: VAT on buying a house is 6.5% (IGIC-Indirect General Canary Islands Tax). Purchasing public housing, an investor can expect 4% VAT, but it is formalized by the self-governing community and the type of reviewed municipal housing.

The second tax is additional to VAT when a new-built is bought in Spain – IAJD, also called as AJD. This levy is delivered by the buyer, and the amount depends on the location, it is different for each self-governing community. Note that these taxes are not applicable to secondary houses, only to the new-builds.

Taxes upon purchase of a new house in Spain

Each autonomy has its own tax amount (​​AJD and VAT rates are indicated separated by commas:

  • Andalusia: 1.2%, 10.0%;
  • Aragon: 1.5%, 10.0%;
  • Asturias: 1.2%, 10.0%;
  • The Balearic Islands: 1.2%, 10.0%;
  • The Canary Islands: 0.4%, 6.5%;
  • Cantabria: 1.5%, 10.0%;
  • Castile-La Mancha: 1.5%, 10.0%;
  • Castile and Leon: 1.5%, 10.0%;
  • Catalonia: 1.5%, 10.0%;
  • Ceuta: 0.5%, 10.0%;
  • Madrid: 0.75%, 10.0%;
  • Valencia: 1.5%, 10.0%;
  • Extremadura: 1.5%, 10.0%;
  • Galicia: 1.5%, 10.0%;
  • La Rioja: 1.0%, 10.0%;
  • Melilla: 0.5%, 10.0%;
  • Murcia: 1.5%, 10.0%;
  • Navarre: 0.5%, 10.0%;
  • The Basque Country: 0.0%, 10.0%.

Get assistance in search for property in Spain

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Read also: How To Create The Best Real Estate Development Business Plan?

The Cost Of Buying A New-built In Spain: Extra Levies In 2022

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