Taxes on the Purchase of Commercial Real Estate in Barcelona in 2025

When buying and selling commercial real estate in Catalonia—particularly in Barcelona—it is essential to understand the applicable taxes and taxation rules.

Types of Properties: Commercial premises (with or without tenants), Hotels, Land plots for development projects, Warehouses and office spaces

Taxes on Purchase

VAT (IVA): Applied to new properties. The VAT rate is 21%. If the seller is a business entity and the transaction is subject to VAT, the buyer may be required to pay it. In some cases, the seller can waive the VAT exemption, allowing the buyer to deduct the VAT paid.

ITP (Impuesto sobre Transmisiones Patrimoniales) – Property Transfer Tax: Applied to resale properties if the transaction is not subject to VAT. The rate depends on the property’s value:

• Up to €600,000 — 10%
• €600,000 to €900,000 — 11%
• €900,000 to €1,500,000 — 12%
• Over €1,500,000 — 13%

AJD (Actos Jurídicos Documentados) – Stamp Duty: Applied to notarized transactions. The rate is 3.5% for VAT-taxable properties.

Buyer Type: Individual or Legal Entity

• Individual Buyer: Must pay either ITP or VAT, depending on the type of transaction.
• Legal Entity: Also subject to either ITP or VAT.
• Taxable Person (sujeto pasivo): In most cases, the buyer is the taxable person and is responsible for paying the taxes.

Exemptions and Reductions

• VAT Liability: In certain cases, the buyer may be liable for VAT if the transaction is subject to VAT.
• Secondary Market Sales: In some cases, the seller may waive the VAT exemption, allowing the buyer to deduct the VAT paid.
• Land Plots: If the land is intended for development, the transaction may be subject to VAT.

When purchasing a commercial property with an existing tenant, the buyer may only pay around 2.5% in tax if the transaction is subject to VAT and uses the reverse charge mechanism (inversión del sujeto pasivo). This means the buyer assumes responsibility for the VAT payment, and the seller is exempt.

When the 2.5% Rate Applies

If the seller is a business or legal entity and the buyer is also a taxable person (e.g., a company or self-employed professional), and if:

• The transaction is a second or subsequent transfer (i.e., the property is not new),
• The buyer intends to use the property for their business activity,
• Both parties agree to apply the reverse charge mechanism,

then the buyer pays VAT at 21% but can recover it through a VAT deduction if used for business purposes. Instead of the ITP, a reverse VAT payment is made. As a result, the effective tax burden is approximately 2.5% of the property’s value.

Legal Framework

• Law 37/1992 – on VAT
• Law 6/2023 – on securities markets and investment services

Impact of the Tax Reform Starting June 27, 2025

As of June 27, 2025, a new tax reform in Catalonia introduces the following changes:

• ITP rate increase from 10% to 20% for large property owners and bulk building purchases
• Abolition of tax benefits related to resale of residential properties

However, this reform does not affect transactions subject to VAT under the reverse charge mechanism. Therefore, buyers of commercial properties with tenants who apply the reverse mechanism will still benefit from the reduced effective tax rate of 2.5%, unaffected by the ITP rate hike.

Recommendations

• Consult a tax advisor to evaluate whether the reverse charge mechanism is suitable for your specific case.
• Ensure the seller agrees to apply the reverse charge mechanism, and that this is explicitly stated in the purchase agreement.
• Formalize the transaction through a notary and register it with the Land Registry.