IVA
Spanish value-added tax, applied to new-build property purchases instead of ITP. 10% on residential new-builds.
IVA (Impuesto sobre el Valor Añadido) is Spanish VAT. For property buyers, IVA replaces ITP when the apartment is a new-build (a first transmission from a developer).
The rate for residential property new-builds is 10% of the purchase price, paid by the buyer at completion. Commercial property pays the general 21% IVA rate.
IVA is always accompanied by AJD (1.2% in Andalucía) on the deed itself, so the total new-build tax burden is 11.2%, compared to 7% ITP on a resale.
On a resale of a property that was previously a new-build (a second transmission), the tax flips to ITP — you pay 7% as a resale, not 10% IVA. Your lawyer confirms which applies based on the seller's position in the chain.