Tax on new construction in Spain: the complete guide to the Costa Brava 2025

Building a new home in Spain is an investment chosen by many French buyers, particularly on the Costa Brava. However, it is crucial to have a clear understanding of the taxes involved in building a new home in Spain in order to budget your property project correctly. This detailed guide will provide you with information on all the taxes applicable to new builds in Spain, with a specific focus on opportunities not to be missed in Roses, Empuriabrava, Platja d'Aro and Cadaqués.

Tax overview: essential taxes for new builds

Spain has a specific tax system for new builds, which should not be confused with the system for older properties. This difference between the two taxes can have a significant impact on your investment strategy on the Costa Brava, where the new-build market is experiencing steady growth.

Spanish VAT (IVA): the main tax

Spanish VAT, known as IVA (Impuesto sobre el Valor Añadido), is the main tax applicable to new builds. In 2025, the general rate will be 10% for primary residences and can reach up to 21% for second homes in very specific cases.

This difference in the calculation of the two taxes has a significant impact on your purchase budget. For a new villa costing €400,000 in Cadaqués, VAT represents between €40,000 and €84,000 depending on whether you are a resident or non-resident, which means that careful tax planning is essential.

Documented Legal Acts (AJD): the mandatory supplement

The AJD (Actos Jurídicos Documentados) is always added to VAT when purchasing a new build. This regional tax stamp varies depending on the autonomous community. In Catalonia, the region of the Costa Brava, the AJD is 1.5% of the purchase price.

This additional tax, which is often underestimated by buyers, nevertheless represents a significant cost that could prove risky to ignore. Returning to our example of a villa costing £400,000, the AJD generates an additional £6,000 that must be included in your budget.

Taxes on the construction of new homes in Spain: detailed analysis

The process of purchasing a new build generates several taxes that are spread over the different stages of your property project.

Reservation and deposit phase

When signing the reservation contract, no specific tax applies to the deposit paid. However, these amounts are deducted from the final price and therefore affect the calculation of the final taxes.

When reserving a new apartment in Empuriabrava, you will generally need to pay 10% of the sale price as a deposit. These funds, which are frozen until the property is delivered, must be secured in accordance with Spanish regulations on bank guarantees.

Taxation upon final signature

The signing of the final deed of sale triggers the application of all taxes for new construction in Spain. This crucial step brings together all the tax obligations:

VAT (IVA): 10% or 21% depending on status AJD: 1.5% in Catalonia on the purchase price; Notary fees: approximately 0.1% to 0.2% of the value; Registration fees: approximately 0.1% of the value.

Specific features of properties subject to VEFA

Purchases under the VEFA (Vente en État Futur d'Achèvement) scheme have important tax features that need to be taken into account. Payments made in instalments during construction do not trigger the payment of tax until the property is delivered, offering the buyer a degree of cash flow flexibility.

All taxes for new construction in Spain: practical calculations for the Costa Brava

Let's take a look at the specific tax impact on different types of new properties available on the Costa Brava.

New apartment in Roses (250,000 euros)

Main residence (10% VAT):

• VAT (IVA): 25,000 euros
• AJD: £3,750
• Additional costs: £750
• Total taxes: £29,500

Secondary residence (21% VAT):

• VAT (IVA): £52,500
• AJD: £3,750
• Additional costs: £750
• Total taxes: £56,750

New villa in Platja d'Aro (€600,000)

Main residence:

• VAT (IVA): £60,000
• AJD: £9,000
• Additional costs: £1,800
• Total taxes: £70,800

Secondary residence:

• VAT (IVA): £126,000
• AJD: £9,000
• Additional costs: £1,800
• Total taxes: £136,800

Penthouse in Empuriabrava

(€450,000)

This category of property, which is highly sought-after on the Costa Brava, perfectly illustrates why it is important to plan ahead when it comes to taxation. A penthouse with sea views in Empuriabrava generates taxes ranging from €49,250 if it is a primary residence to €103,250 for a second home.

Legal tax optimisation for new builds

There are several legal strategies for optimising the tax burden when purchasing a new build in Spain.

Choice of residence status

The difference in tax treatment between primary and secondary residences warrants a thorough analysis of your personal situation. The conditions for obtaining permanent resident status include:

• Effective occupation of the property as your habitual residence
• Registration with the municipal register (empadronamiento)
• Compliance with effective residence requirements

Arrangements via a civil real estate company

Certain asset structures can optimise overall taxation, particularly for rental investments or high-value second homes. This approach requires the support of experienced professionals.

Negotiation of facilities and services

The separate valuation of certain movable assets (furniture, decoration, specific installations) may influence the tax base, subject to real economic justification and appropriate documentation.

Regional tax advantages in Catalonia

Catalonia, the region of the Costa Brava, offers certain tax advantages specific to new buildings, which are particularly attractive to French investors.

Energy efficiency reductions

New buildings that meet high energy standards benefit from AJD reductions of up to 0.3 points. This saving, which may seem modest at first glance, represents £1,200 on a £400,000 purchase.

Bonus for first-time buyers

Young buyers under the age of 35 can benefit from preferential tax conditions, subject to income and actual residence requirements.

International comparison: advantages of Spain

The Spanish tax regime for new builds offers competitive advantages over other Mediterranean destinations.

Compared to France

The French VAT rate of 20% on new builds is significantly higher than in Spain, even for second homes. This difference makes many purchase projects on the Costa Brava economically viable.

Compared to Italy and Portugal

Spain maintains a competitive tax regime that is particularly attractive for primary residences, with a VAT rate of 10%, among the lowest in Western Europe.

Professional support from IMMO 365 Costa Brava

The complexity of the Spanish tax system means that support from experienced professionals who are fully familiar with local specificities is essential.

Multilingual tax expertise

IMMO 365 Costa Brava has expertise in all tax issues relating to new builds and communicates fluently in English with its clients.

This dual expertise is invaluable in optimising your investment abroad.

Network of specialist partners

The agency's team includes tax specialists, notaries and lawyers specialising in acquisitions by non-residents, guaranteeing comprehensive support and personalised advice tailored to your individual situation.

Post-acquisition support

Our support does not end with the signing of the notarised deed, but also includes monitoring post-acquisition reporting obligations, which are particularly important for non-Spanish tax residents subject to specific obligations.

Regulatory developments and outlook for 2025

The Spanish tax landscape is constantly changing, requiring constant monitoring to optimise your investments.

Stability of key rates

The Spanish authorities are maintaining relative stability in property VAT rates, promoting visibility for international investors. These forecasts are a major competitive advantage for Spain.

Dematerialisation of administrative procedures

The Spanish administration is continuing its modernisation with the gradual dematerialisation of tax procedures, thereby simplifying the process for non-residents.

Booming markets on the Costa Brava

IMMO 365 Costa Brava's four flagship destinations offer market dynamics that are particularly favourable for new construction.

Roses: controlled development

Roses is undergoing unparalleled real estate development that respects its environment. New constructions, subject to strict architectural standards, guarantee the preservation of the Mediterranean character of yesteryear while offering modern comfort.

Empuriabrava: nautical innovation

Empuriabrava, Europe's only seaside resort with navigable canals, attracts innovative projects combining residential and nautical activities. New builds with private moorings are attractive investments, despite higher taxes justified by the exclusivity of this lifestyle.

Platja d'Aro: contemporary luxury

Platja d'Aro is developing a high-end offering with contemporary residences combining design and energy efficiency. These projects, which are often eligible for tax reductions for energy efficiency, optimise the tax-related value for money.

Cadaqués: rare heritage

Cadaqués, listed for its exceptional heritage, offers new builds that respect traditional architecture. These rare and highly sought-after properties fully justify their level of taxation due to their potential for appreciation.

FAQ: your essential questions about taxes on new builds

What is the VAT rate applicable to new builds in Spain?

VAT (IVA) is 10% for primary residences and 21% for secondary residences, constituting the main tax on new builds.

What are all the taxes to be expected for a new build?

Taxes include VAT (10% or 21%), AJD (1.5% in Catalonia), notary fees (0.1-0.2%) and registration fees (0.1%), totalling 11.7% to 22.8% depending on residential status.

Is the AJD the same throughout Spain?

No, the AJD varies depending on the autonomous community. In Catalonia (Costa Brava), for example, it is 1.5% of the purchase price.

Can Spanish VAT be reclaimed?

Property VAT is not generally recoverable for individuals, unlike commercial activities under certain specific conditions.

Are there tax reductions for more environmentally friendly buildings?

Yes, buildings that meet high energy standards can benefit from AJD reductions of up to 0.3 points in Catalonia.

When do you have to pay taxes on a new building?

Taxes are paid when the final deed of sale is signed at the notary's office, usually upon delivery of the property.

Does French nationality affect taxes?

No, taxes apply in the same way regardless of the buyer's nationality. Only the status of residence (primary/secondary) affects the VAT rate.

How can you legally optimise taxes on a new build?

Optimisation involves choosing your residence status, selecting properties eligible for energy efficiency reductions and, where applicable, setting up appropriate asset structures.