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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 English “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 tax on certain notarial documents when they:
are notarized,
have an economic value and
are 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 registering a mortgage loan
For notarial certifications which 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 must be considered in addition to other costs such as notary, land register, ITP (for second-hand properties) and legal fees.
Who pays the AJD?
As a rule, the buyer pays the AJD, unless otherwise expressly agreed in the purchase contract. When taking out a mortgage, the bank usually covers the AJD on the mortgage, but not on the purchase price of the property itself.
Important notes for property buyers:
Don’t forget to budget: The AJD is a significant cost factor when buying property and should be calculated early on.
Observe deadlines: Payment must be made within one month of the notarial certification.
Professional advice recommended: A lawyer or tax advisor helps to determine the exact tax burden and check for optimization possibilities.
Conclusion
The AJD is a fixed component of the additional costs when buying property in Spain – especially when purchasing new buildings. Even if it sometimes receives less attention compared to real estate transfer tax, it can amount to a considerable sum depending on the purchase price. Careful planning and competent advice are therefore essential to avoid surprises at the notary appointment.
