Maria de Castro Legal Clinic

azimat said:
Saturday, December 13, 2025 @ 5:38 AM

I am a non-resident and non-EU citizen. I am in touch with a promoter to buy an off-plan apartment in Galicia. The promoter is using an SL for the device. What are my tax positions when I sign the Contract in May 2026

María said:
Saturday, December 13, 2025 @ 12:29 PM

Good morning, Azimat! Thanks for contacting us. Please have answer to your question below:

1) When you sign the private purchase contract (May 2026) and make stage payments

For a typical off-plan purchase from a developer (first sale / “new build”):

Main tax: VAT (IVA)

VAT is charged on each amount you pay (reservation, deposit/arras, instalments, etc.).

Standard VAT for a new home is usually 10% (and commonly also applies to up to two parking spaces sold together with the home, plus annexes if transferred jointly—depending on how it’s structured).

Practical point: the developer should issue invoices for each payment showing the VAT.

What you usually do not pay at this stage

AJD (Stamp Duty on notarised deeds): generally no, because the private contract is not a notarised, registrable deed.

ITP (Transfer Tax): generally no, because ITP is normally for resale/second-hand homes. New build from a developer is typically VAT + AJD instead.

2) When you sign the notarial deed (escritura) at completion/hand-over

This is where the “formal” taxes usually hit:

A) VAT (IVA) – final tranche

VAT applies to the total price, but if you already paid VAT on earlier instalments, at the deed you pay VAT on the remaining balance.

B) AJD (Stamp Duty on notarised deeds) – Galicia

In Galicia, the general AJD rate is commonly 1.5% (applied to the taxable base used for AJD—often linked to the declared value, subject to tax authority checks).

Possible reduced rate (important):

Galicia can apply reduced AJD rates (often 1%) for primary residence (“habitual residence”) scenarios, but this is condition-based (and in practice many non-residents do not qualify unless they genuinely move, meet residency/usage requirements, and satisfy the region’s conditions).

3) Non-resident / non-EU points (common questions)

No 3% withholding: the 3% retention is typically relevant when the seller is non-resident. Here the seller is a Spanish S.L., so that withholding normally does not apply.

After you buy, even as a non-resident you may face:

IBI (annual local property tax)

Non-Resident Income Tax (IRNR / Modelo 210):

If you don’t rent, there’s usually an imputed income filing.

If you do rent, you declare rental income (rules differ for EU vs non-EU in terms of deductible expenses).

Potential Wealth / Solidarity tax exposure depending on total net assets and thresholds.

4) Key caveat: make sure it is truly a “first delivery” (new build)

The VAT + AJD treatment assumes it’s the developer’s first sale of the newly built property (typical off-plan handover). Unusual prior use/letting can change the tax treatment.

If you tell me:

price range,

whether a parking space/storage is included, and

whether you plan to relocate to Spain after completion,
I’ll lay out a simple worked example showing expected VAT at contract vs at deed, and the AJD estimate in Galicia.

azimat said:
Sunday, December 14, 2025 @ 11:51 PM

Hi!

Thank you so much for the comprehensive reply .

(1) The price for the apartment to live is 305,000. The parking lot is free plus storage space as the agreement if payment made with 3 tranches and without applying for mortgage

(2) I am also planning to buy a Tourist Apartment with price of 250,000€.
Free parking lot and storage if pay in 3 tranches without mortgage.

( 3) Price of parking lot if purchase with mortgage is 20,000€

(4) I intend to apply for NLV and continue with non-resident status

(5) what if with NLV and become tax-resident

María said:
Monday, December 15, 2025 @ 10:23 AM

Hi Azimat, thanks for the extra details.

1) Main apartment (€305,000) + “free” parking/storage (off-plan, bought from a Spanish S.L.)

On signing the private contract and paying in tranches, you normally pay VAT (IVA) at 10% on each instalment (the developer should invoice each payment).

At completion (notary deed), you pay any remaining VAT and also Stamp Duty (AJD) in Galicia, commonly around 1.5% (subject to the correct tax base and any regional conditions).

2) Tourist apartment (€250,000)

If it is also a new build / first sale from the developer, the usual treatment is the same: 10% VAT + AJD at deed.

If it is structured as a tourism exploitation / serviced product, VAT treatment can differ, so we would need to confirm how it is being sold and registered.

3) Parking valued at €20,000 if you take a mortgage

Parking/storage usually follows the home’s tax treatment if sold as an annex, but the contract wording matters.

If you sign a mortgage deed, there may be additional AJD on the mortgage deed (separate from AJD on the purchase deed).

4) NLV and tax residency

Having an NLV (immigration residence) does not automatically make you a Spanish tax resident. Tax residency depends mainly on days spent in Spain (183+) and your centre of interests.

If you remain non-tax-resident, after purchase you will still face IBI and Modelo 210 (Non-Resident Income Tax) (imputed income if not rented; rental taxation if rented).

If you become tax resident, the purchase taxes (VAT/AJD) don’t usually change, but your ongoing taxation becomes broader (worldwide income, different reporting, etc.).

For total peace of mind, we recommend a final consultation with a professional, using your full personal details and the draft contracts, before you sign.

Cheers!

Roberto said:
Sunday, December 21, 2025 @ 2:33 PM

I have two offspring both in their fifties. I wish to gift my Spanish property to them but my son has what appears to be terminal cancer. I do not wish half the property to go to his other family by marriage. How can I circumvent the legal issue and leave the whole of the property to my daughter?

Maria said:
Sunday, December 21, 2025 @ 5:06 PM

First, check which law would apply if you died without a will: under Brussels IV (EU Succession Regulation 650/2012), the default is the law of your habitual residence at the time of death. So you would only fall under Spanish forced-heirship rules by default if your habitual residence is Spain (and you make no choice of law).

Even then, the solution is straightforward: if you are not Spanish, you can make a will with a professio iuris and choose the law of your nationality. That choice applies even if the property is in Spain—and if your national law has no forced shares, you can leave the entire property to your daughter.