The price of a home in Madrid is only part of the bill. Taxes and completion costs come on top. The total depends on whether the home is new or second-hand, on the price and on the buyer's situation. Here are the rates in force in the Madrid region in 2026.
Second-hand homes: transfer tax (ITP)
Buying a second-hand home is subject to transfer tax, known as ITP. In the Madrid region the general rate is 6% of the price. The buyer pays it to the regional government, not to the city council.
There are reductions for specific cases. Large families pay 2% if the home will be their main residence. If the home costs no more than 250,000 euros and will be the main residence, the tax bill is reduced by 10%. Buyers under 35 get a 100% reduction, but only in towns with fewer than 2,500 inhabitants. It does not apply in the city of Madrid.
The tax must be filed within 30 working days of signing the deed.
New builds: VAT and stamp duty (AJD)
If you buy directly from the developer, you pay 10% VAT instead of ITP. The deed also attracts stamp duty, known as AJD. In Madrid it is 0.75% when the buyer is an individual and the home is worth more than 180,000 euros. Below that figure there are reduced rates, listed on the regional government's website.
Notary, land registry and gestoría
Notary fees are set by the national government by Royal Decree and depend on the price of the home. Registration at the Land Registry also follows a legal tariff linked to the amount. Registering is always advisable and compulsory when there is a mortgage.
A gestoría, or paperwork agency, is optional. It files the taxes and takes the deed to the Registry, and charges its own fee. With a mortgage, the bank usually requires an agency of its choice for the registration. The valuation is paid by the buyer and prices vary between valuation firms. The stamp duty on the mortgage itself is paid by the bank.
What the buyer does not pay
The municipal capital gains tax, known as plusvalía, is the seller's. It is a city tax on the increase in land value since the seller bought. If the contract says otherwise, check it before signing. Estate agency fees are paid by whoever hires the agency, usually the seller.
How we do it at Madin
Before the deposit contract we work out with you the taxes and costs for that home, at the rate that applies to you. We accompany you at the notary on signing day. If you have a specific case in mind, write to us and we will tell you what you pay and how much it adds to the price.