AJD :: Actos Jurídicos Documentados

When buying a property in Spain, the buyer is subject to various taxes and fees. One of these is the AJD (Actos Jurídicos Documentados)in German “Fee on notarized legal acts”. This tax is often levied in connection with notarial deeds, mortgages and entries in the land register – and plays an important role in the purchase of real estate, particularly in Mallorca and the rest of Spain.

What is the AJD?

The AJD is a state-regulated taxon certain notarial documents when they are:

1. notarized are,

2. an economic value and

3. in the land register be entered in the land register.

It is part of the so-called Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos Documentados (ITP-AJD)i.e. the tax on property transfers and documented legal acts.

When is the AJD due?

The AJD is mainly due in the following cases:

• At the first purchase of a new property (e.g. from the developer)

• When registration of a mortgage loan

• For notarial certificationswhich are registered in the land register

For second-hand properties only ITP (real estate transfer tax) is generally payable instead of AJD, unless there are special contractual or formal conditions.

How high is the AJD in Mallorca?

The amount of the AJD varies depending on the region, as it is an autonomous tax the Balearic Islands have set their own rates. On Mallorca (and the rest of the Balearic Islands) the following standard rates currently apply (as of 2024)

• 1,5 % on the notarized value (standard)

• In certain cases, a reduced rate of 0,5 % may apply, e.g. for social housing or young buyers under certain conditions.

Calculation example:

When purchasing a new property at a price of €500,000 with notary and land register entry, the AJD is calculated as follows:

• 500.000 € x 1,5 % = 7.500 €

This amount is in addition to other costs such as notary, land register, ITP (for second-hand properties) and legal fees.

Who pays for the AJD?

As a rule, the buyer bears the AJD, unless expressly agreed otherwise in the purchase contract. When a mortgage is taken out, the bank usually bank pays the AJD on the mortgagebut not on the purchase price of the property itself.

Important information for real estate buyers:

• Don’t forget to plan for this: The AJD is a significant cost item when buying a property and should be calculated early on.

• Observe deadlines: Payment must be made within one month of notarization.

• Professional advice recommended: A lawyer or tax advisor can help you determine the exact tax burden and examine optimization options.

Conclusion

The AJD is a fixed part of the additional costs when buying a property in Spain – especially when purchasing a new build. Even if it sometimes receives less attention than land transfer tax, it can amount to a considerable sum depending on the purchase price. Careful planning and expert advice are therefore essential to avoid surprises at the notary appointment.