There are certain taxes you have to pay when you buy a home, whether new or second hand, and take out a mortgage. Here are the details:
Taxes for the purchase of a new-build home
When you buy a new-build home, you are liable for VAT. The rate in 2020 is 10%. However, if you a buy a new-build home in the Canary Islands, you will pay IGIC (General Indirect Canary Islands Tax) instead of VAT at a rate of 6.5%.
In the case of the public housing stock (i.e. properties owned by a government authority), VAT is likely to be charged at 4%, but this may vary because it depends on the region of Spain and the type of social housing.
For commercial premises you will pay 21% VAT, and if you buy a garage or storage unit the rate will be 10%.