Do you pay stamp duty on property in Sotogrande?


One of the most important things to appreciate for anyone looking to buy a house in Sotogrande is the fact that the outlay involved in a property purchase is not restricted purely to the property’s purchase or mortgage price. There are other key costs to account for, including relevant taxes and duties, which together typically add about 10% to 15% to the price of a house in Spain.

Stamp duty is very much one of those costs; however, there can be some scope for confusion here, including as to whether and how stamp duty applies for new-build and second-hand properties.

So, here’s a quick rundown of the latest stamp duty situation for those interested in acquiring a property in this part of the Costa del Sol.

How the situation differs between new and resale properties

Stamp duty in Spain is commonly referred to as AJD, or Actos Jurídicos Documentados. It is most associated with the purchase of new homes – that is, properties that have never been bought before.

The buyers of new properties in Spain are required to pay both stamp duty and VAT – the latter known as IVA in Spain, and amounting to 10% of the property price. In the case of houses that have been bought previously, however, purchasers will need to pay Spanish Transfer Tax (ITP) instead of VAT, with stamp duty often being included in the ITP price.

With regard to Andalucía specifically – where Sotogrande is located – new tax rules that came into force in the region in 2019 have implications for how much you pay. The AJD tax here is currently 1.5% of the mortgage loan applied for; however, it can be as low as 0.3% for people under 35 years old, or 0.1% for people with disabilities equal to or greater than 33%.

What’s more, the new tax rules’ modification of the AJD – which is also often referred to as the ‘Tax on Documented Acts’ – means it must now actually be paid by banks, instead of affecting the consumer.

We can be key allies in your journey to a Sotogrande property purchase

The various taxes, fees and other costs that apply for those looking to buy a house in Sotogrande can be a confusing subject; they are also liable to change. We are therefore unable to guarantee that all of the information mentioned in this article will be entirely up to date by the time you read this, so would urge you to seek professional advice on the latest situation.

One thing we can guarantee, however, is that here at Property Sotogrande, we will always serve as a dependable portal to the most recent property listings from leading estate agents for the Sotogrande area of Spain.

We allow you to search multiple agents’ property listings simultaneously, which could enable you to land your dream Sotogrande home sooner than you think!