Buying a new-build or off-plan property in Spain means a different tax bill from a resale — and a different payment calendar. In Andalusia in 2026, a new build carries 10% VAT plus 1.2% stamp duty (11.2% in total), compared with the 7% transfer tax of a resale. And here is what most buyers only discover with the first invoice: you pay the VAT with every stage payment during construction, not in one go at completion.
This guide breaks down each tax, when it is actually paid, and how the numbers compare with a second-hand purchase — with everything dated for 2026.
VAT (IVA) at 10%: paid at every stage, not at the end
New homes sold by a developer are subject to VAT: 10% of the purchase price for residential property (4% only for certain officially protected housing). Unlike transfer tax, VAT is charged on each invoice the developer issues — which in an off-plan purchase means the whole payment schedule:
Two practical consequences. First, budget the VAT from day one: a 30% contract payment really costs 33% of the price with its VAT. Second, every payment must come with a developer’s invoice showing the VAT separately — and remember that your advance payments (VAT included) must be covered by the bank guarantees that protect stage payments under Law 20/2015.
Stamp duty (AJD): 1.2% in Andalusia, only at the deed
New builds also pay stamp duty (Actos Jurídicos Documentados) when the public deed is signed. In Andalusia the general rate is 1.2% in 2026. Reduced rates exist for a primary residence below certain price and age thresholds — whether you qualify is exactly the kind of detail we confirm case by case before completion.
total taxes on a new build in Andalusia (10% VAT + 1.2% AJD) — vs 7% ITP on a resale
New build vs resale: the tax comparison
7% ITP
- Transfer tax (ITP), paid once after the deed
- No VAT, no stamp duty in most cases
- Tax paid when you already own the home
10% VAT + 1.2% AJD
- VAT charged on every stage payment during the build
- Stamp duty at the notary deed
- In exchange: a brand-new home with 1, 3 and 10-year warranties
For a resale purchase, the equivalent tax is the transfer tax — we cover it in detail in our guide to property transfer tax in Andalusia. The 4.2-point difference is real, but it buys you a new home, developer warranties and no renovation surprises; the right choice depends on the property, not just the tax rate.
Other costs to budget before you sign
Beyond taxes, allow for notary and Land Registry fees, gestoría processing and your independent lawyer. Non-resident buyers also need an NIE before paying taxes in Spain. As a rule, we give clients a full written cost breakdown — taxes included, dated and itemised — before they sign anything; it is part of our off-plan due diligence.
Our advice as lawyers
- Check every invoice. Each stage payment needs an invoice with the VAT itemised — keep them all for completion and any future claim.
- Verify the guarantee covers VAT. The bank guarantee must secure the amounts you have actually paid, tax included.
- Date your numbers. Rates change with regional budgets — the figures in this article are valid for Andalusia in 2026.
Frequently asked questions
Do I pay VAT on every off-plan payment?
Yes. The developer charges 10% VAT on the reservation, the private contract payment and every stage payment, each with its own invoice — not as a single amount at completion.
How much are total taxes on a new build in Andalusia?
In 2026, 11.2% of the purchase price: 10% VAT plus 1.2% stamp duty (AJD). A resale pays 7% transfer tax instead.
Is stamp duty payable before completion?
No. AJD is triggered by the public deed, so it is paid at completion — only the VAT accompanies your payments during construction.
This article is general legal information, not advice for a specific case. For your purchase, book a consultation and our lawyers will prepare your full cost breakdown.
