Taxes When Buying New Build Property in Spain (Full 2025 Guide)
What Taxes Do You Pay When Buying a New Build Property in Spain?
Taxes when buying new build property in Spain are one of the most important cost elements to understand before making a purchase. Unlike resale properties, new builds are taxed differently — and often higher.
When buying a new build property in Spain, understanding the taxes involved is essential. Unlike resale homes (which are subject to transfer tax), new build homes are taxed differently — and the amounts can be substantial.
In this guide, we explain the taxes you must pay when buying directly from a developer, especially in the Alicante region, and provide real examples based on current 2025 rates.
✅ Main taxes when buying a new build in Spain
When you buy a newly built home from a developer (or promoter), two main taxes apply:
- VAT (IVA): 10% of the purchase price
- Stamp Duty (AJD): 1.5% in the Valencian Community (including Alicante)
These two taxes are calculated separately, and both must be paid near the time of signing the final deed (escritura pública).
📊 Tax amounts based on property price (Alicante, 2025)
The following table shows how much tax you would pay when buying a new build home in Alicante at different price levels:
| Property Price | VAT (10%) | Stamp Duty – AJD (1.5%) | Total Taxes | Total Cost |
|---|---|---|---|---|
| €300,000 | €30,000 | €4,500 | €34,500 | €334,500 |
| €400,000 | €40,000 | €6,000 | €46,000 | €446,000 |
| €500,000 | €50,000 | €7,500 | €57,500 | €557,500 |
| €600,000 | €60,000 | €9,000 | €69,000 | €669,000 |
| €700,000 | €70,000 | €10,500 | €80,500 | €780,500 |
🧾 How are these taxes paid?
These taxes are usually paid shortly before or at the time of signing the public deed at the notary:
- VAT is paid directly to the developer on the invoice.
- Stamp Duty (AJD) is declared using Modelo 600 and paid to the regional tax authority (Generalitat Valenciana).
Are there other costs?
In addition to VAT and AJD, budget for the following:
- Notary fees: ~€1,000
- Land registry fees: ~€500–€800
- Legal fees: ~1% of the purchase price if you use a private lawyer
What makes Alicante different?
Alicante is part of the Valencian Community, where the AJD is set at 1.5% in most cases. Some other regions in Spain apply 1.2% or 2%, but in Alicante this figure has remained stable, making it easier to calculate total costs in advance.
Final thoughts
When buying a new build home in Spain, your total tax load is typically around 11.5% of the property price. Planning ahead helps you budget realistically — especially for mid- and high-end properties where taxes easily exceed €50,000.
At NewBuildAlicante.es, we help buyers understand every cost involved and ensure transparency throughout the process.
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