Complete Guide to Madrid Property Taxes for Buyers (2026)

Understanding property taxes is essential before buying in Madrid. Taxes differ depending on whether you buy a resale property or a new build. Resale purchases usually involve ITP (Property Transfer Tax). New builds typically include IVA (VAT) and AJD (Stamp Duty). This guide explains each tax in simple language and what to expect in 2026. We also cover annual ownership costs such as IBI (property tax), trash fees, and community fees. Buyers should budget for additional closing costs including notary, registry, and legal assistance. Knowing your total cost upfront helps you avoid surprises and make smarter comparisons between listings. If you’re investing, tax planning matters even more because it affects your net rental yield.