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What you pay on top of the price

Pick the kind of home and enter the price. The tax follows the Comunidad de Madrid's rates and the national VAT law, as they stand in October 2026.

How each tax works

  1. Resale homes: ITP

    Buying from a private owner is taxed by the Comunidad de Madrid with the transfer tax (Impuesto sobre Transmisiones Patrimoniales). The general rate is 6%.

    Since January 2022 the tax is charged on the Catastro reference value of the home, unless the price you pay is higher. You can look up the reference value on the Catastro website with the property's cadastral reference.

    You file form 600 and pay within 30 working days of signing the deed. Most buyers let the notary's office, a gestoría or their lawyer file it.

  2. Discounts on ITP

    A main home bought by an individual for up to €250,000 gets a 10% bonus on the tax, so you pay 5.4% instead of 6%. Up to two parking spaces and a storage room bought with it count toward the €250,000.

    Large families with an official título de familia numerosa pay 4% on their main home, provided they sell the previous one within two years. The two reductions can't be combined.

  3. New homes: VAT and AJD

    The first sale of a new home by the developer pays VAT (IVA) instead of ITP: 10% on homes, including up to two parking spaces and annexes sold with them (Ley 37/1992, art. 91). Officially protected homes of the special regime pay 4%.

    The deed also pays stamp duty (Actos Jurídicos Documentados) to the Comunidad de Madrid, at 0.75%.

  4. When the seller lives abroad

    If the seller isn't tax resident in Spain, the buyer must hold back 3% of the price and pay it to the tax office with form 211, on account of the seller's tax. It's deducted from what you pay the seller, so it doesn't add to your cost, but it does change how the money moves at the notary.

Sources: Comunidad de Madrid, Atención al contribuyente (ITP and AJD pages, updated April 2026); Ley 37/1992 del IVA, art. 91. General information, not tax advice.

Common questions

Who pays the tax when buying a home in Madrid?

The buyer. ITP on a resale home and VAT plus AJD on a new home are the buyer's costs. The seller pays the municipal plusvalía and their own income tax on any gain.

What is the Catastro reference value?

A value the Catastro sets for each property from recent sales nearby. Since 2022, ITP is charged on that value when it's higher than the price you agreed.

Does a mortgage add more tax?

Not for you. The bank pays the stamp duty on the mortgage deed, and since Ley 5/2019 it also pays the notary, registry and gestoría costs of the mortgage. You pay the valuation. Ask for the bank's binding offer (FEIN) and read it before you sign.

Are notary and registry fees fixed?

They are set by official tariffs that depend on the price, so they're similar everywhere, but there's no single figure. Ask the notary's office for an estimate before you sign.