Stamp Duty: Guide 2026

Stamp Duty on Documented Legal Acts is one of the most relevant factors when purchasing a home in Spain. Although it is not as well known as VAT, its economic impact is significant when it comes to real estate investments.

For your convenience, at Domoblock we will show you a modern, transparent, secure and profitable method to invest in real estate sector. This way, you won’t have to worry about the risks inherent to traditional tax procedures.

What are Stamp Duty on Documented Legal Acts?

Stamp Duty on Documented Legal Acts can be defined as a tax levied on notarial and commercial registry documents. It is regulated by Royal Legislative Decree 1/1993, which classifies it as an indirect tax. It is also important to clarify that it is linked to administrative acts.

This measure was approved by the Consolidated Text of the Law on  Transfer Tax and Documented Legal Acts. This is important because it demonstrates its scope in tax collection. Many legal scholars have noted that its effectiveness is highly transparent.

The purpose of this tax is to levy the economic value represented by the formalization of certain legal acts, such as a purchase and sale. Likewise, it is linked to the formation of companies and the granting of mortgage loans by banking institutions.

Who must pay this tax when purchasing a property?

The complexity surrounding taxpayers’ payment obligations is due to legislative reforms. Previously, Stamp Duty on Documented Legal Acts (AJD) in home purchases was paid by the buyer. However, a 2018 ruling by the Supreme Court established that, in the case of mortgage loans, the bank is responsible for the payment.

Despite the case mentioned above, whenbuying a new property, the buyer is the party subject to payment. By contrast, when it comes to a second-hand property, the Stamp Duty on Documented Legal Acts does not apply; instead, a Property Transfer Tax is levied.

As you can see, everything depends on the scenario, so there is no rule that applies universally. If your budget is tight, the best alternative is to opt for a second-hand home. However, if you are a lender, you must be careful with the value of mortgage loans.

You might be interested in: housing reservation contract.

Types of Legal Acts

There are not many documents related to these taxes. Basically, they are divided into three groups, which in turn belong to different areas of public administration. This versatility allows for faster and more efficient tax collection. Take a look at the available legal acts:

• Notarial
• Commercial
• Administrative

Below we will explain in depth the characteristics of these documents and their relationship with indirect taxes. We will also indicate an approximate amount based on the type of legal act, so you can have a clear understanding of the applicable tax.

Point 1: Notarial documents

They are the subject of the most common administrative procedures, such as deeds and any notarial certification with economic content. Additionally, property registrations, mortgage loans, and declarations of new construction (both public and private) are also included.

Point 2: Commercial documents

All documents related to commercial transactions are subject to the Stamp Duty on Documented Legal Acts. Bills of exchange and promissory notes are the most common cases. In short, these cover the main transactions of businesses and corporate law.

Point 3: Administrative documents

They include administrative concessions, license transfers and administrative awards. These are less common in the life of the average citizen, but they are relevant in transactions with the public administration. The acquisition of urban street furniture is another example of this type of legal act.

What is the amount of the tax?

It all depends on the autonomous community you belong to, but in general, the rate ranges between 0.5% and 1.5% of the total value of the document. It should be noted that mortgage loans also fall under this category; however, remember that the party responsible for payment is the lender granting the credit.

That said, regions such as Madrid have a higher rate, currently 0.75% for standard transactions. In contrast, in Catalonia it can reach up to 1.5%, so you should carefully consider your location when taking on the tax obligations associated with these transactions.

Now, is it smart to move to a location with a lower tax rate? The answer is yes,but it entirely depends on your business. Don’t forget to consider other expenses, as this is a highly complex decision. It’s also important to note that the method of calculation can make a significant difference.

How is it calculated?

It’s not a complex task. In fact, it’s simpler than you might imagine. To get started, you just need to follow a few steps to calculate the amount. There aren’t many, so don’t worry. The key points are easy to understand. Still, take a look at the bases for the calculation:

• Determine the Taxable Base
• Apply the Tax Rate
• Consider Tax Reductions and Exemptions

You may have doubts about how to perform the calculations. Considering thatthis assessment can be sometimes  challenging, we will guide you through the steps you need to follow so that Stamp Duty (AJD) taxes are no longer a concern.

Step 1: Determine the Taxable Base

Primarily, the taxable base is determined by the value declared in the deed. In the case of mortgages, it will be the amount of the loan capital, including all ordinary and late-payment interest, as well as associated costs. Naturally, certain conditions must be taken into account when assessing it.

Step 2: Apply the Tax Rate

Once the taxable base of the applicable taxes has been determined, the corresponding percentage is applied based on the autonomous community. Keep in mind that the more prestigious the location, the higher the amount you will have to pay.

Step 3: Consider Tax Reductions and Exemptions

Some autonomous communities offer tax reductions. In fact, some cases include low-income familiesor for people with disabilities. As a result, they help reduce the financial burdens present in many projects and initiatives.

How and where is the AJD tax paid?

Stamp Duty (AJD) taxes must be paid within a maximum of 30 business days from the date the deed is signed. Below, we will explain the most important aspects of this complex tax framework, as well as where this tax must be paid.

Step 1: Online or In-Person Filing

You don’t have to make the payment in person if it’s inconvenient. You can now complete the tax payment online. This option gives users greater flexibility when paying their taxes. That said, payment can still be made at the institution’s offices.

Step 2: Use of Form 600

Form 600 is the preferred tool to declare and pay tax duties. Its content is straightforward, as it includes the transaction details, the taxable base, and the applicable tax rate. For your convenience, the notary can assist you in preparing the document.

Step 3: Payment and Receipt Issuance

After submitting the form and making the payment, you will receive a receipt to register the acquiredproperty in the Property Registry. Important: if you do not pay the Stamp Duty (AJD), it will have no effect with respect to third parties.

What is the difference between AJD and ITP?

These taxes form part of the same regulatory framework, but they are applied differently. First, the ITP(property transfer tax) applies to resale (second-hand) properties, while the AJD is levied on new properties. Both taxes are not charged at the same time; you pay one or the other.

Can the AJD payment be claimed?

These taxes can be reclaimed when the assessed value exceeds the established amount. If this is your case, you must go to the institution’s offices to request a refund. However, you will need to provide evidence that the charge was applied incorrectly.

What happens if the AJD is not paid?

Penalties will be your main issue, you may have to face significant fines. Additionally, the act will not be recognized by third parties and therefore will not be legally binding. Finally, the penalty for the fee will increase as long as the evasion persists.

How does the AJD affect real estate investment?

If the transaction has a high value, it may affect your budget.. To avoid this, we recommend planning your investment strategy. The most advisable approach is the tokenized real estate investment model we propose at Domoblock.

Would you like to invest in real estate without complications?

The key to success lies in avoiding intermediaries and growing your capital with an investment starting from just €200. Thanks to real estate tokenization and blockchain technology, this model aims to deliver capital growth of around 10% in under 12 months.

Why choose Domoblock?

First and foremost, the real estate investment will be flexible and can be made from anywhere in the world. Also, diversification offers strong long-term return potential. Likewise, transactions are secure and backed by blockchain technology.

Keep in mind that investments always involve risk, so it’s natural to feel concerned about the possibility of losing money. But don’t worry; atDomoblock we are here to help. Let us handle the process: you invest your capital, and through our strategy, we work to grow it over time.

Profitability in the real estate world is achievable, but it’s essential to be properly advised. So if you have any questions, don’t hesitate to contact us; we’ll answer all your questions and help you invest your capital in the most suitable way.

Conclusion

Stamp Duty (AJD) taxes are essential when purchasing a property in Spain. At Domoblock, we understand that this is a complex tax, but understanding its fundamentals will help you make better financial decisions and avoid tax-related complications.