Taxes When Buying a Property in Catalonia: A Guide for Spanish and Foreign Buyers

Buying a property in Catalonia involves paying certain taxes and additional costs on top of the purchase price. Knowing about these costs in advance will help you plan your budget and avoid unexpected expenses.

The taxes you pay mainly depend on whether the property is new or resale.

Resale properties: Property Transfer Tax (ITP)

When buying a resale property, you will generally have to pay Property Transfer Tax (ITP).

In Catalonia, the standard rate is progressive and starts at 10%, increasing for higher-value properties. There are also reduced rates in certain circumstances, for example for some young buyers purchasing their main residence who meet the relevant requirements.

For this reason, it is advisable to check which ITP rate applies to your particular situation before buying.

New-build properties: VAT and Stamp Duty (AJD)

If you are buying a new-build property directly from a developer, you will normally pay 10% VAT.

The purchase is also subject to Stamp Duty (AJD), with the standard rate in Catalonia currently being 1.5%.

For example, on a new property costing €400,000, VAT would amount to €40,000, in addition to AJD and the other costs associated with the purchase.

What if you are a foreign buyer?

Foreign buyers can purchase property in Catalonia and, in general, the purchase taxes are not different simply because of your nationality.

However, if you are not a tax resident in Spain, it is important to consider that you may have additional tax obligations as a property owner, particularly if you rent out the property or use it as a second home.

The cadastral reference value is also important

When buying a resale property, it is important to pay attention to the Cadastral Reference Value, as it can affect how ITP is calculated.

For this reason, before signing a purchase, it is advisable to check both the property price and its tax situation.

How much money do I need in addition to the purchase price?

The advertised price of a property is not the final cost of buying it. In addition to the purchase price, you should also budget for taxes and other expenses such as notary and registration fees and, where applicable, financing or administrative costs.

For example, if you are looking for a property priced at €500,000, it is advisable to calculate the taxes and additional costs beforehand so that you have a realistic idea of your total budget.

Buying a property on the Costa Brava

If you are thinking about buying a property on the Costa Brava, understanding the taxes and costs involved beforehand will allow you to search for properties within a realistic budget and approach the buying process with greater confidence.

Are you thinking about buying a property on the Costa Brava?

At Immogrupstar, we accompany you throughout the entire buying process, from finding the right property to completing the purchase, helping you understand the costs and procedures you need to consider.

If you are looking for a house, apartment or villa on the Costa Brava, contact our team and tell us what you are looking for. We will be happy to help you find your next home.

Tax regulations can change, and individual circumstances may affect the taxes applicable to a purchase. This article is for general information purposes only and does not constitute tax advice.