Ask the Realtor: What is Stamp Duty and How Much is it?

Stamp duty is a tax that you have to pay when purchasing a new build property in Spain. Apart from the VAT which is due on new builds, at the moment 10% in the provinces of Alicante and Murcia, you also have to pay stamp duty, which amounts to 1,5% in Alicante (Comunidad Valenciana) and 2% in Murcia. A lot of people are not made aware of this cost, so they are surprised when they have to pay more than expected.

This stamp duty is only to be paid on new builds, so for a resale property, you don´t need to pay stamp duty. In this case, you only have to pay 10% transfer tax (in stead of 10% VAT) in Alicante (Comunidad Valenciana) and 8% transfer tax (in stead of 10% VAT) in the province of Murcia.