If you are considering buying a property in Spain, understanding how the tax system compares to Germany is one of the most practical steps you can take. Some taxes work in a similar way in both countries; others are structured quite differently, and knowing where the key differences lie will help you plan your budget with confidence.
This article covers the main taxes you will encounter as a property owner in Spain — when buying, when selling, on an ongoing annual basis, and on inheritance — with a clear comparison to the equivalent German rules at each stage.
Understanding the tax obligations involved in buying property in Spain is an important step for any international buyer. Photo: Freepik
Taxes when buying a property
In Germany, the main purchase tax is the Grunderwerbsteuer, which varies by federal state — from 3.5% in Bavaria to 6.5% in states such as North Rhine-Westphalia, Brandenburg, and Schleswig-Holstein. Notary and land registry fees add a further 1.5% to 2%. Since 2020, estate agent fees are split equally between buyer and seller by law.
In Spain, what you pay depends on whether the property is new or second-hand — a distinction that does not exist in the same way in Germany:
- For a resale property, you pay ITP (Impuesto sobre Transmisiones Patrimoniales), Spain's equivalent of the Grunderwerbsteuer. Rates range from 6% in Madrid to 7% in Andalucía and 7.75% in Murcia. Cataluña applies a progressive scale: 10% up to €600,000, 11% from €600,001 to €900,000, 12% from €900,001 to €1,500,000, and 13% above that — making it one of the most expensive regions for resale purchases. The Valencian Community applies 10% as its standard rate, though this is set to reduce to 9% for properties under €1 million from June 2026.
- For a new-build property, ITP does not apply; instead you pay IVA (VAT) at 10% of the purchase price, plus AJD (stamp duty) of between 0.5% and 1.5% depending on the region. Unlike Germany, agent fees in Spain are typically paid by the seller, though buyers should always confirm this in their purchase agreement.
Total purchase costs in Spain — including notary and land registry fees — typically add 10% to 13% on top of the purchase price for resale properties, and 12% to 15% for new builds. Our guide to taxes when buying a property in Spain covers each of these in full detail.
| Taxes & Costs |
Germany |
Spain |
| Purchase tax (resale) |
Grunderwerbsteuer 3.5%–6.5% by state |
ITP 6%–13% by region |
| Purchase tax (new build) |
Grunderwerbsteuer 3.5%–6.5% |
IVA 10% + AJD (stamp duty) 0.5%–1.5% |
| Notary and registry |
~1.5%–2% |
~1%–2% |
| Agent fees |
Split equally between buyer and seller by law |
Typically paid by the seller |
Property purchase taxes and costs: Germany vs Spain
A worked example: €300,000 purchase
To make the comparison concrete, consider a €300,000 property purchase.
Resale property:
- Bavaria (resale): Grunderwerbsteuer at 3.5% = €10,500, plus notary and registry fees of approximately €5,000. Total additional costs: approximately €15,500, or around 5.2% of the purchase price.
- Andalucía (resale): ITP at 7% = €21,000, plus notary and registry fees of approximately €3,500. Total additional costs: approximately €24,500, or around 8.2% of the purchase price.
New build:
- Bavaria (new build): The same Grunderwerbsteuer of 3.5% applies = €10,500, plus notary and registry fees of approximately €5,000. Unlike Spain, Germany does not apply VAT to residential new-build purchases by private buyers. Total additional costs: approximately €15,500, or around 5.2% of the purchase price — identical to a resale purchase.
- Spain (new build): IVA at 10% = €30,000, plus AJD at 1.2% = €3,600, plus notary and registry fees of approximately €3,500. Total additional costs: approximately €37,100, or around 12.4% of the purchase price.
The comparison illustrates two important points. First, in Germany the tax cost of buying is the same whether the property is new or second-hand — the Grunderwerbsteuer applies equally to both. In Spain, the new-build route carries a significantly higher upfront tax burden, which is one of the most important distinctions for German buyers to understand. Second, even a resale purchase in Andalucía costs notably more in tax than the equivalent purchase in Bavaria, though the gap is manageable with careful budgeting.
Annual property taxes
In Germany, the annual Grundsteuer is a local levy calculated using the assessed property value, a federal rate, and a local municipal multiplier. Following the 2025 reform, values have been updated to reflect current market levels. In practice, annual amounts are very low — almost symbolic in many cases — with a typical Berlin apartment generating a bill of around €80 to €150 per year.
In Spain, the equivalent is IBI (Impuesto sobre Bienes Inmuebles), also a municipal tax based on the cadastral value of the property rather than the market value. IBI rates typically range from 0.4% to 1.1% of the cadastral value. Bills are broadly comparable in many cases, though Spain shows greater variation and can be noticeably higher in prime locations such as Marbella or Ibiza. Full details on how IBI is calculated and when it falls due are in our guide to IBI property tax in Spain.
One important difference for non-resident owners is Spain's imputed income tax on unrented properties, filed via Modelo 210. If you own a property in Spain and do not rent it out, you are still required to pay a modest annual tax calculated on a percentage of the cadastral value. Germany has no equivalent to this obligation, and it catches many foreign buyers by surprise.
Taxes when selling a property
Both countries tax capital gains on property, but the rules differ in important ways:
Read more at thinkSPAIN.com