The advertised price of a new build home in Spain is only part of what you’ll actually pay. Taxes and fees typically add another 10–15% on top of the purchase price, and getting a realistic figure for these costs early — before you commit to a reservation deposit — avoids an unpleasant surprise later in the process. This guide breaks down exactly what those costs are for a new build purchase in Ciudad Quesada, Rojales, in the Valencian Community.
Why new build is taxed differently from resale
Spain taxes property purchases differently depending on whether you’re buying a brand-new home directly from a developer (as with Residencial Montesol) or a resale property from a previous owner. New build property is subject to VAT (IVA) plus Stamp Duty (AJD, Actos Jurídicos Documentados), while resale property is instead subject to a transfer tax (ITP) with no VAT. If you’re comparing a new build purchase against a resale property, this difference is worth factoring in — the headline tax treatment isn’t the same.
IVA (VAT) — 10% nationally
For new build residential property across mainland Spain, IVA is charged at a flat 10% of the purchase price. This applies uniformly regardless of region (the Canary Islands work differently, under a separate tax called IGIC, but that doesn’t apply here). IVA is paid directly to the developer as part of the purchase price and passed on to the tax authorities — it isn’t something you settle separately after completion.
AJD (Stamp Duty) — set by the region
Stamp Duty on new build property is set by each autonomous region, and rates vary noticeably across Spain. Ciudad Quesada and Rojales fall within the Valencian Community, where AJD on new build property is 1.5% of the purchase price — on the higher end nationally (some regions, such as Madrid, charge under 1%). Because this is set at regional level and can change with regional budgets, it’s worth confirming the current rate with your lawyer or notary at the time of your purchase rather than relying on a fixed figure indefinitely.
Putting it together: total tax on a new build home
Combining IVA and AJD for a property in the Valencian Community gives a typical total tax bill of around 11.5% of the purchase price — 10% IVA plus 1.5% AJD. On a home priced at €370,000, that’s roughly €42,500 in tax alone, before any other fees.
Notary and Land Registry fees
Beyond tax, two further fees are fixed by law and apply to every property purchase in Spain:
- Notary fees: set on a regulated scale linked to the property price and the complexity of the deed. For a straightforward new build purchase, budget roughly €800–€1,500, though this can vary with the specifics of your transaction.
- Land Registry fees: for registering the property (and any mortgage) in your name, typically in the range of 0.1%–0.3% of the purchase price, often landing somewhere between €400 and €650 for a home in this price range.
Unlike an estate agent’s commission in some countries, none of these fees are negotiable — they’re fixed by regulation regardless of which notary or registry office handles your transaction.
Legal fees
Instructing an independent Spanish lawyer to review your contract and represent your interests isn’t a legal requirement, but it’s standard practice for international buyers and strongly recommended. Legal fees are typically charged either as a fixed fee or as a percentage of the purchase price — commonly around 1%, though this varies by firm and by how much work the transaction involves. Ask for a clear, written fee quote before instructing anyone.
Mortgage-related costs, if you’re financing part of the purchase
If you’re using a mortgage, expect additional costs on top of the above: a bank valuation fee (paid to value the property for the lender, separate from any survey you commission yourself), and potentially an arrangement fee charged by the bank. Since 2019, Spanish law has shifted most of the tax and registration costs associated specifically with setting up a mortgage onto the lender rather than the borrower, but arrangement and valuation fees still typically fall to the buyer — see our guide to mortgages for non-residents for more detail on financing a purchase.
A worked example
For a home priced at €370,000 in the Valencian Community, a realistic (though approximate) total for taxes and fees looks like this:
- IVA (10%): ~€37,000
- AJD (1.5%): ~€5,550
- Notary fees: ~€800–€1,500
- Land Registry fees: ~€400–€650
- Legal fees (if using a lawyer, ~1%): ~€3,700
That puts total buying costs at roughly €47,000–€48,500 on top of the purchase price — in the region of 12.5–13% overall. These figures are indicative, not a quote: tax rates, notary scales, and legal fees can all change, and your own transaction may differ. Always confirm current figures with your lawyer before budgeting your purchase.
Ongoing costs after completion
Buying costs are a one-off, but it’s worth budgeting for what follows: annual property tax (IBI, set by the local council), community fees covering shared areas like the communal pool, non-resident income tax if you don’t live in Spain full-time, and buildings insurance. These are separate from the purchase costs above but are part of realistically budgeting for ownership.
Questions about costs specific to Residencial Montesol
Every buyer’s situation differs slightly depending on whether they’re financing part of the purchase, which stage of construction the home is at when they buy, and their own tax residency. For a cost breakdown specific to your purchase, get in touch via our Contact page for a breakdown that matches your specific situation.
This page is general information, not tax or legal advice. Tax rates and fee scales can change — always confirm current figures with a qualified Spanish lawyer or tax adviser before relying on them.
Frequently asked questions
Do I pay IVA or ITP on a new build home?
IVA (VAT) plus AJD stamp duty — new build property from a developer is never subject to ITP transfer tax, which applies only to resale property.
Can I negotiate notary or registry fees?
No — both are fixed by regulation and don’t vary based on which notary or registry office you use, unlike legal fees, which can vary between firms.
Are these costs the same everywhere in Spain?
IVA is the same nationally, but AJD stamp duty is set at regional level and varies — the Valencian Community’s rate applies to a purchase in Ciudad Quesada or Rojales specifically.
Do I need a lawyer, or can I handle the purchase myself?
It isn’t a legal requirement, but instructing an independent Spanish lawyer is standard practice for international buyers and strongly recommended, particularly for reviewing the contract and checking the property’s legal status.
Are there ongoing costs beyond the initial purchase?
Yes — see our cost of living guide for annual property tax (IBI), community fees, and other recurring costs of ownership.
For a concrete example of how these costs apply in practice, see the listing for Residencial Montesol, our new build development in Ciudad Quesada.