IVA in Spain (Impuesto sobre el Valor Añadido) is the tax applied when buying a new build property directly from a developer.

The standard rate for residential property is 10%, making it a key cost to consider when investing in new developments.

In addition to IVA, buyers must also pay AJD (stamp duty), usually between 1% and 1.5%, depending on the region.

Example:

• €300,000 property → €30,000 IVA
• Plus €3,000–€4,500 AJD

Key points:

• Applies only to new builds
• Paid to the developer
• Fixed rate: 10%
• Combined with AJD

New builds often offer strong value, but IVA must always be factored into your budget.

You pay ITP for second-hand properties; there is no IVA.