When buying a home in Torrevieja, you pay the acquisition taxes and the deed and administrative costs that fall to you; if you take out a mortgage, you also pay the loan costs for which you are responsible.
To prepare your budget, distinguish between a resale home and a first supply by the developer.
This classification determines the main tax.
You also need to check the property’s tax value and any reliefs for which you qualify.
The rates shown are in force as at 21 October 2026.
Taxes when buying a home
What taxes do you pay on a resale home?
If you buy a resale home from a private individual, you pay tax on transfers for consideration (TPO), which forms part of the Spanish transfer tax, ITP.
TPO: a standard rate of 9%, rising to 11% above one million euros
From 1 June 2026, the standard rate applicable to you is 9% , unless you qualify for relief.
If the value of the property or right transferred exceeds one million euros, the rate is 11% .
Also check your related acquisitions: acquisitions involving the same registered property from the same transferor over three years are treated as a single transfer for this rule.
Is the tax calculated on the price or the reference value?
You must use the highest of the cadastral reference value, the agreed price and the declared value.
Check the reference value applicable on the date the tax liability arises.
If there is no reference value that can be certified, compare the price, declared value and market value.
Distinguish this figure from the cadastral value used for the IBI property tax.
What taxes apply to a new home?
For a first supply by the developer, you pay VAT and the variable component of the tax on documented legal acts (AJD) applicable to your purchase.
When is VAT payable, and at what rate?
You pay the developer VAT at 10% of the price.
For officially protected housing (VPO) under the special scheme or public development, the rate is 4%.
This treatment includes up to two parking spaces and ancillary premises in the building transferred together with the home.
If you buy a home previously rented out or used by the developer, check its tax classification: that use affects whether it qualifies as a first supply.
AJD on the purchase: the standard rate and your main residence
From 1 June 2026, the standard AJD rate is 1.4% .
If you are buying your main residence and meet the definition required under Spanish personal income tax (IRPF) legislation, the applicable rate is 0.1% .
To calculate it, check the price recorded in the deed excluding VAT and the applicable minimum property value for tax purposes.
For an ordinary resale purchase subject to TPO, the variable component of AJD is not included in the tax assessment.
Who qualifies for reduced rates?
You qualify for reduced rates when you meet all the requirements for the relief, including any applicable financial and documentary requirements.
A first main residence for buyers under 35
If you are under 35 and buying your first main residence, the applicable TPO rate is 6% up to a value of 180,000 euros and 8% above that.
The sum of your general and savings taxable bases after reductions must not exceed 30,000 euros for an individual tax return or 47,000 euros for a joint return.
Formalise the acquisition in a public instrument within the required period; the relief applies to the share you acquire.
Other tax reliefs and conditions worth checking
Check whether you qualify through protected housing, large-family or single-parent-family status, disability, or status as a victim of gender-based violence.
Depending on the circumstances, rates of 6% or 8%, or 3% or 4%, may apply.
Check the specific requirements for your category.
You must provide evidence of the protected status and, where applicable, comply with income limits and the requirement to use the property as your main residence.
Purchase costs, mortgage expenses and tax filing
Who pays for the deed and the conveyancing formalities?
The allocation of your purchase costs is determined by the legal rules and valid contractual agreements.
Notary fees and copies: the statutory allocation and contractual agreements
As the buyer, you pay for the first copy and the costs following the sale under the Civil Code’s default allocation.
The costs of executing the deed fall to the seller.
Check any agreement that changes this allocation.
Ask for an itemised estimate before accepting a costs clause.
Land Registry, administrative agent and checks for encumbrances
Include registration of the acquisition in your budget, along with an administrative agent’s fees if you engage one.
Ask for professional fees, disbursements and taxes to be listed separately.
Before signing, obtain a Land Registry information extract, or nota simple, to check ownership and encumbrances.
Also compare the registered description with the home you are buying.
What extra costs arise if you finance the purchase with a mortgage?
With a mortgage governed by Law 5/2019, you pay for the valuation and any additional items you contract for.
Valuation, requested copies and arrangement fee
Commission the valuation from an accredited professional.
If you provide a valid valuation, you are entitled to have the bank accept it without charging you to check it.
You pay for any notarial copies you request.
If you agree to an arrangement fee, you pay it once, and it covers assessment, processing and granting of the loan.
Loan costs payable by the bank
For the loan deed, the bank pays the notary fees, registration costs, administrative agent’s fees and taxes.
This allocation includes mortgage AJD.
Insist on a request for funds that distinguishes between the loan and the acquisition.
This allows you to identify which amounts relate to each deed and who must pay them.
How should you prepare your tax assessment and payment?
Prepare your Form 600 with the correct date and supporting documents for the rate applied.
Form 600: when liability arises and the filing deadline
For TPO, you have one month from the transaction or contract.
A private contract also triggers the tax liability: check its date before calculating the deadline.
For notarial AJD, submit Form 600 within one month following formalisation.
Keep proof of filing and payment.
Documents and items to check before signing
Have your identification, the contract or deed, and the cadastral details ready.
Add supporting documentation if you are claiming tax relief.
Check the taxable base and the percentage you are acquiring.
Ask for the request for funds to itemise taxes, purchase costs and loan costs separately.
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