What taxes are paid when buying or selling a property in Spain in 2026?

Buying or selling a property in Spain involves a series of tax obligations that often raise questions for individuals, companies, and investors alike.

Beyond the purchase price, taxes can represent a significant cost that should be properly anticipated to avoid mistakes, unexpected expenses, or issues with the authorities.

In this article, we review what taxes are paid in 2026 when buying or selling a property, distinguishing between buyers and sellers, and providing practical insights to plan the transaction with confidence.

Taxes paid by the buyer when purchasing a property in 2026

The buyer’s tax obligations mainly depend on whether the property is new or second-hand.

Purchase of a new property: VAT and Stamp Duty (AJD)

When purchasing a property directly from a developer (first transfer), the transaction is subject to:

• VAT (Value Added Tax):
  • General rate of 10% on the purchase price.
  • Reduced rates may apply to protected housing.
• Stamp Duty (AJD – Actos Jurídicos Documentados):
  • Payable upon execution of the public deed.
  • Rate varies by autonomous community (typically between 1% and 1.5%).

In this case, it is important to note that VAT and AJD are compatible, meaning both apply to the transaction.

 

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Purchase of a second-hand property: Transfer Tax (ITP)

If the property has had a previous owner, VAT does not apply. Instead, the following tax is due:

• Transfer Tax (ITP – Impuesto sobre Transmisiones Patrimoniales):
  • Rate set by each autonomous community (typically between 6% and 10%).
  • Calculated on the higher of the purchase price or the cadastral reference value.

Important: transactions subject to ITP are not subject to VAT, and vice versa. Therefore, both taxes are never paid in the same transaction.

Taxes paid by the seller when selling a property

The seller also has relevant tax obligations, especially if a gain is obtained from the transaction.

Capital gain in Personal Income Tax (IRPF) or Corporate Income Tax

Selling a property generates a capital gain or loss, calculated as the difference between the sale value and the acquisition value (including expenses and taxes).

Depending on the type of seller:

• Individuals: taxed under Personal Income Tax (IRPF) (savings base).
• Companies: taxed under Corporate Income Tax.

It is essential to consider that certain costs (notary, registry, taxes, etc.) can be deducted. Poor planning can significantly increase the tax burden.

Municipal capital gains tax (IIVTNU)

In addition, the seller must pay the so-called municipal capital gains tax (Tax on the Increase in Value of Urban Land).

This tax:

• Is managed by the corresponding local council.
• Taxes the increase in land value from purchase to sale.
• Can be calculated using different methods depending on local regulations.

Following recent regulatory changes, it is essential to verify whether there has actually been an increase in value and which calculation method is more favorable.

How these taxes affect the real cost of the transaction

One of the most common mistakes is to assess a property transaction based solely on the purchase price, without considering the tax burden. In practice, these taxes represent:

• A significant additional cost for the buyer.
• A direct reduction in the seller’s profit.

Impact on the buyer

The buyer must anticipate a higher outlay than the property price:

• New property: 10% VAT and AJD (approx. 1%–1.5% depending on the region).
• Second-hand property: ITP (typically between 6% and 10%).

Additionally, in the case of ITP, the taxable base may be the cadastral reference value, even if it exceeds the purchase price. Overall, the total cost can increase by 10% to 15%.

Impact on the seller

For the seller, taxes reduce the net profit of the transaction:

• Capital gain (IRPF or Corporate Income Tax):
  • Taxed on the difference between sale and acquisition value
  • In IRPF, rates can reach up to 26%
  • Allows deduction of costs associated with the purchase and sale
• Municipal capital gains tax: Depends on the local council and land value. It is not payable if no increase in value can be proven

The final amount received by the seller may be significantly lower than the sale price.

If you are considering investing in the real estate market, especially in large cities, it is important to analyze not only the tax aspects of the transaction but also the legal considerations associated with this type of operation.

Key recommendations before buying or selling a property

To minimize risks and optimize the tax impact of the transaction, it is advisable to:

• Review the type of transaction (new vs. second-hand) and its tax implications.
• Check the cadastral reference value, as it may affect the taxable base.
• Plan the capital gain before selling.
• Analyze applicable tax deductions or benefits.
• Verify local taxation (municipal capital gains tax).

Are you planning to buy or sell a property in 2026?

At Adlanter, we help you analyze each transaction from both a tax and legal perspective so you can make decisions with confidence.

If you are considering buying or selling a property, contact our corporate advisory team and we will support you throughout the entire process. We also provide advice on property transactions in Madrid and Sierra Norte or in Barcelona and its metropolitan area.