When buying, what shall I pay VAT or transfer tax?

When buying a property in Spain, a buyer will have to pay either VAT (plus AJD—Actos Jurídicos Documentados) or transfer tax. There are multiple taxation cases depending of the type of property and if it is a new property or second hand that I will try to summarize as much as possible. The first difference is the tax treatment for residential properties, plots, garages, storages or commercials. Once inside those groups I will detailed the different cases:

Type of Property	Tax applicable	Rate of the tax
Residential — New built	VAT + AJD	10 % + 1,5 %
Residential — Second hand	Transfer tax	Up to 400.000 € — 8 % From 400.000 € to 700.000 € — 9 % From 700.000 € on — 10 %
Plot — From developer	VAT + AJD	21 % + 1,5 %
Plot — Second hand from individual	Transfer tax	Up to 400.000 € — 8 % From 400.000 € to 700.000 € — 9 % From 700.000 € on — 10 %
Plot — Second hand from company	VAT + AJD	21 % + 1,5 %
Commercial — New built	VAT + AJD	21 % + 1,5 %
Commercial — Second hand from individual	Transfer tax	Up to 400.000 € — 8 % From 400.000 € to 700.000 € — 9 % From 700.000 € on — 10 %
Commercial — Second hand from company (if the buyer is another company and can deduct the VAT of the operation, the tax will be the VAT at 21%)	Transfer tax	Up to 400.000 € — 8 % From 400.000 € to 700.000 € — 9 % From 700.000 € on — 10 %
Garage — New built as annex to a residential	VAT + AJD	10 % + 1,5 %
Garage — New built sold as an individual unit	VAT + AJD	21 % + 1,5 %
Garage — Second hand from individual sold as an individual unit	Transfer tax	Up to 30.000 € — 8 % From 30.000 € to 50.000 € — 9 % From 50.000 € on — 10 %
Garage — Second hand as annex to a residential	Transfer tax	Up to 400.000 € — 8 %
Garage — Second hand from a company sold as an individual unit (if the buyer is another company and can deduct the VAT of the operation, the tax will be the VAT at 21%)	Transfer tax	Up to 30.000 € — 8 % From 30.000 € to 50.000 € — 9 % From 50.000 € on — 10 %
Storage — New built as annex to a residential	VAT + AJD	10 % + 1,5 %
Storage — New built sold as an individual unit	VAT + AJD	21 % + 1,5 %
Storage — Second hand from individual sold as an individual unit	Transfer tax	Up to 30.000 € — 8 % From 30.000 € to 50.000 € — 9 % From 50.000 € on — 10 %
Storage — Second hand as annex to a residential	Transfer tax	Up to 400.000 € — 8 %
Storage — Second hand from a company sold as an individual unit (if the buyer is another company and can deduct the VAT of the operation, the tax will be the VAT at 21%)	Transfer tax	Up to 30.000 € — 8 % From 30.000 € to 50.000 € — 9 % From 50.000 € on — 10 %

Since each particular case is different, it is fully recommended that you check your own details with your lawyer or tax advisor.