What it is
VAT applied to new-build property purchases at a reduced rate of 10% (standard rate is 21%). Applies to first sales of properties by developers. Not charged on resale property — where ITP applies instead. Land purchases are typically subject to 21% IVA. This is a core term in the Costa del Sol property purchase process and one buyers frequently encounter during due diligence.
Why it matters for international buyers
Understanding IVA — Impuesto sobre el Valor Añadido is part of the standard due diligence framework for any foreign buyer purchasing on the Costa del Sol. A Spanish property lawyer (abogado) will handle the mechanics, but buyers who understand the term can ask better questions and interpret advice more accurately.
This entry is reviewed by the Listyco editorial team. It is not legal advice; instruct a Spanish lawyer for your specific position. Last reviewed April 2026.