<\/span><\/h2>\n\n\n\nThe most significant tax when buying a new home is the Canary Islands General Indirect Tax (IGIC), which replaces the Value Added Tax (VAT) applied on the mainland.<\/span><\/p>\n\n\n\n<\/span>Canary Islands General Indirect Tax (IGIC)<\/b><\/span><\/h3>\n\n\n\nIn mainland Spain, the VAT for new homes is 10%. In the Canary Islands, the IGIC is applied, and the tax rate for new home purchases is 7%.<\/span><\/p>\n\n\n\n\n- Application<\/b>: It is applied to the notarized sale price of the property.<\/span><\/li>\n\n\n\n
- Importance<\/b>: This 3.5% difference compared to the mainland makes buying in Fuerteventura more attractive from a tax perspective.<\/span><\/li>\n<\/ul>\n\n\n\n
<\/span>Documented Legal Acts (AJD)<\/b><\/span><\/h3>\n\n\n\nThis tax applies to notarial and registry documents. In the Canary Islands, the AJD is paid together with the IGIC.<\/p>\n\n\n\n
\n- Tax Rate<\/b>: The general rate in the Canary Islands is 1% of the sale price of the property.<\/span><\/li>\n\n\n\n
- Total Taxes<\/b>: Adding the IGIC and the AJD, the buyer should expect a total of 8% of the property price in mandatory taxes (7% IGIC + 1.5% AJD in most cases, although the rate can vary slightly depending on the taxable base and municipality).<\/span><\/li>\n<\/ul>\n\n\n\n
\n\u2b50 <\/span>Key Fact from Casilla de Costa<\/b>: In most new home purchases in the Canary Islands, the total percentage of direct taxes (IGIC + AJD) is around 8%.<\/span><\/p>\n<\/blockquote>\n\n\n\n
![\"Taxes](\"https:\/\/casilladecosta.com\/wp-content\/uploads\/2025\/11\/impuestos-y-gastos-Casilla-1024x512.png\")
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