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📊 AJD breakdown
Spain’s Stamp Duty (Actos Jurídicos Documentados — AJD) is one of three components of the consolidated Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos Documentados tax, governed by Royal Legislative Decree 1/1993. It applies to notarial documents that are registrable in the Land Registry or Mercantile Registry and contain a quantifiable economic value. The three main contexts where AJD applies in 2026 are: new-build property purchases (which pay VAT + AJD, not ITP), mortgage deeds (where the bank has been the taxpayer since 2018), and commercial deeds for company formations or capital increases. As a tax delegated to Autonomous Communities, the rate varies significantly: from 0.75% in Madrid and the Canary Islands to 1.5% in Catalonia, Aragon, Galicia, and others.
🔍 When does AJD apply?
AJD in the notarial documents modality applies when three conditions are met simultaneously:
- The act is formalised in a public notarial deed (escritura pública).
- The document is registrable in a public registry (Land Registry, Mercantile Registry, Movable Assets Registry).
- It has a quantifiable economic value (purchase price, mortgage amount, share capital, etc.).
| Type of act | AJD base | Taxpayer |
|---|---|---|
| New-build property purchase | Notarised purchase price | Buyer |
| Mortgage deed | Total Mortgage Liability (capital + interest + costs) | Bank (since June 2018) |
| Mortgage increase | Amount of increase | Bank |
| Company incorporation deed | Share capital | Company |
| Mortgage subrogation | Outstanding balance | Bank or buyer |
Critical update: since Law 5/2019 on Real Estate Credit Contracts (effective from June 2018), the bank — not the buyer — pays AJD on the creation of a new mortgage. This reversed the previous practice.
🗺️ AJD rates by autonomous community 2026
| Autonomous Community | General AJD rate | Reduced rate (VPO/youth) |
|---|---|---|
| Andalusia | 1.2% | 0.3% (VPO, families) |
| Aragon | 1.5% | 0.1% (VPO) |
| Asturias | 1.2% | 0.3% (VPO) |
| Balearic Islands | 1.2% | — |
| Canary Islands | 0.75% | 0.4% (youth) |
| Cantabria | 1.5% | 0.3% (VPO) |
| Castile-La Mancha | 1.5% | 0.5% (VPO) |
| Castile and León | 1.5% | 0.4% (youth/VPO) |
| Catalonia | 1.5% | 0.5% (disability/VPO) |
| Extremadura | 1.5% | 0.1% (VPO) |
| Galicia | 1.5% | 0.5% (VPO) |
| Madrid | 0.75% | 0.4% (under 35 / VPO) |
| Murcia | 1.5% | 0.1% (VPO) |
| La Rioja | 1.0% | 0.5% (VPO) |
| Valencia Region | 1.5% | 0.1% (VPO, disability) |
📝 Worked examples
Example 1: New-build flat purchase in Madrid — €250,000
Profile: Isabel buys a new flat for €250,000 in Madrid. She pays VAT + AJD (not ITP, as it is a new build).
- VAT due (10%): €25,000
- AJD due (Madrid - 0.75%): €1,875
In Catalonia (AJD 1.5%), the same flat would generate €3,750 in AJD — double Madrid’s amount.
Example 2: Mortgage deed in Catalonia — €250,000 Total Mortgage Liability
Profile: Carlos signs a mortgage. The bank’s Total Mortgage Liability is €250,000. The bank pays AJD since 2018.
- AJD due (Catalonia - 1.5%): €3,750
- Responsible taxpayer by Law: The Bank
⚠️ Common mistakes
-
Thinking the buyer pays AJD on mortgages post-2018: Since Law 5/2019, the bank pays AJD on new mortgages, not the buyer. This is frequently misunderstood and outdated information still circulates online.
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Confusing ITP and AJD: Second-hand property pays ITP (no AJD on the purchase). New-build property pays VAT + AJD (no ITP). These two taxes do not apply simultaneously to the same property transaction.
-
Forgetting AJD on mortgage increases: If you increase your mortgage capital or extend its term, the modification may trigger AJD on the increased amount — paid by the bank.
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Not checking reduced rates: Many communities offer reduced AJD rates (0.1%–0.5%) for social housing (VPO), buyers under 35, or persons with disabilities. Checking these can save thousands of euros.
❓ Frequently Asked Questions (FAQ)
AJD (Stamp Duty) is paid when a notarial deed with a quantifiable economic value is registered in a public registry. When buying a **new-build** property, the buyer pays VAT (10%) + AJD (0.75%–1.5% depending on the region). When buying a **second-hand** property, the buyer pays ITP (4%–11%) — not AJD. For mortgages, the **bank** pays AJD since 2018, not the buyer.
Since **Law 5/2019** took retroactive effect from June 2018, the **lending bank** is the taxpayer for AJD on new mortgage deeds. Before this change, buyers paid AJD on the mortgage — which in Catalonia at 1.5% on a €250,000 total mortgage liability would have cost €3,750. The law explicitly prohibits banks from passing this cost back to borrowers through contractual clauses, though market pricing may absorb it indirectly.
**ITP** applies to **second-hand** (resale) property — the buyer pays a percentage of the value (4%–11% depending on the region). **AJD** applies to **new-build** property and other notarial deeds — the buyer pays VAT (10%) + AJD (0.75%–1.5%). A buyer never pays both ITP and AJD on the same property purchase. The key question is whether the property is new (VAT + AJD) or second-hand (ITP only).
Madrid has the lowest AJD rate among common-regime communities at **0.75%**. Catalonia charges **1.5%** — double. On a €300,000 new-build purchase, AJD would be **€2,250 in Madrid** versus **€4,500 in Catalonia**. Over a lifetime of property transactions, this regional difference in AJD accumulates significantly, and is one reason why property investors often factor the tax environment into location decisions.
It depends on the type of modification. **Subrogations of creditor** (switching your mortgage to a different bank) are generally exempt from AJD under Law 2/1994. **Novations** that increase the principal or extend the term can be subject to AJD on the increased amount — paid by the bank. **Novations** that only modify interest rate conditions (e.g. fixed-to-variable rate) are also typically exempt.
Yes, several communities offer reduced rates: **Madrid** provides 0.4% for buyers under 35 or for social housing (VPO). **Andalusia** applies 0.3% for VPO and large families. **Canary Islands** applies 0.4% for young buyers. **Castile and León** applies 0.4% for youth and VPO purchases. In all cases, the property must be the buyer's habitual residence and income must fall within limits set by each community.