Tax proration at property completion in Spain: how ITP, IBI and community fees are split between buyer and seller (2026)

When you sign the escritura publica (the public deed) before a Spanish notary, the purchase price is not the only money that changes hands. A set of taxes, recurring bills and deposits must be settled between buyer and seller at the same table. Some are paid in full by one party, some are prorated (split proportionally) based on the signing date, and one carries a hidden liability that catches unwary buyers. Understanding which costs are split and which are not prevents the most common surprise at completion.

The key distinction is between one-off transfer taxes (never prorated, paid by the party who triggers them) and recurring property expenses (prorated by private agreement based on the days each party owned the property). The notary explains the default cost distribution at signing, as the Consejo General del Notariado sets out in its property purchase guidance, but buyer and seller can agree different splits in the deed itself.

Which costs are prorated and which are paid in full at a Spanish completion?

A proration splits a recurring cost so each party pays for the days they actually owned the property. A non-prorated cost is paid entirely by one party because it is triggered by the transaction itself, not by a period of ownership. The table below maps every cost that arises at a Spanish property completion.

Cost	Who pays by default	Prorated?	Basis
ITP (resale transfer tax)	Buyer	No	7% of price in Andalusia, paid in full after signing
IVA + AJD (new build)	Buyer	No	10% IVA plus approximately 1.2% AJD, paid in full
Plusvalia municipal (IIVTNU)	Seller	No	One-off tax on land value increase, paid after signing
Notary fees (escritura)	Buyer (copies) / Seller (matrix)	No	State-regulated tariff, split per notarial custom
Land Registry fees	Buyer	No	Filing the deed for inscription
IBI (annual property tax)	Owner on 1 January	Yes (by agreement)	Per-day split if sold mid-year
Community fees (cuotas)	Owner during the period	Yes (by agreement)	Per-day split, plus debt certificate check
Utilities (water, electricity, gas)	Owner during the period	Yes (by agreement)	Meter reading on signing date
Arras (deposit)	Credited to buyer	Applied to price	Deducted from the balance due at signing
Mortgage cancellation costs	Seller (if clearing a mortgage)	No	Notary, registry and bank fees to clear the charge

The general framework for cost distribution at a Spanish property purchase is explained by the Consejo General del Notariado, which notes that if the private contract says nothing or states costs are “according to law”, the seller pays the plusvalia municipal and the matrix notary fee, while the buyer pays the transfer tax, registry fees, and notary copies.

How is ITP handled at completion and is it ever split?

ITP (Impuesto sobre Transmisiones Patrimoniales) is the transfer tax on resale properties in Spain, governed by the Texto Refundido de la Ley del ITP y AJD (Real Decreto Legislativo 1/1993). It is paid in full by the buyer and is never prorated, because it is a one-off tax triggered by the transfer itself rather than a recurring expense tied to ownership.

In Andalusia the rate is a flat 7% of the purchase price, though the tax base is the higher of the declared price or the valor de referencia de la catastro (the reference value set by the Catastro). The buyer has 30 working days from signing to file and pay the ITP at the regional tax office (Agencia Tributaria de Andalucia). For a EUR 500,000 resale property, the ITP is EUR 35,000, paid entirely by the buyer with no split.

For new-build properties, the buyer pays 10% IVA (VAT) plus approximately 1.2% AJD (stamp duty) instead of ITP. These are also one-off transfer taxes paid in full by the buyer, never prorated. Our guide to ITP in Andalusia covers the rate structure and filing process in detail.

How does IBI proration work when a property is sold mid-year?

IBI (Impuesto sobre Bienes Inmuebles) is the annual local property tax, regulated by the Texto Refundido de la Ley de Haciendas Locales (Real Decreto Legislativo 2/2004). The tax devengos (accrues) on 1 January each year, meaning the person who owns the property on that date is legally liable for the full annual bill, regardless of when the property is sold later in the year.

This creates the most common proration scenario. If the seller owned the property on 1 January and sells on 15 July, the seller is legally responsible for the entire IBI bill but has only used the property for 196 days. The buyer, taking ownership on day 197, will own the property for the remaining 169 days. At the notary, the parties agree a per-day split: the seller reimburses the buyer for the buyer’s share, or the buyer deducts the seller’s unpaid share from the balance due.

The calculation is straightforward. Take the annual IBI amount, divide by 365 (or 366 in a leap year), and multiply by the number of days each party owned the property. For a property with an annual IBI of EUR 1,200 sold on 15 July (day 196 of 2026, a non-leap year), the seller owes EUR 1,200 x 196/365 = EUR 644, and the buyer covers EUR 1,200 x 169/365 = EUR 556. This proration is a private agreement between buyer and seller, recorded in the deed, not a statutory requirement. The tax authority holds the 1 January owner liable regardless of any private proration. Our IBI property tax guide explains the rates and bonifications in full.

What happens with community fees at completion?

Community fees (cuotas de comunidad) are the recurring contributions each owner pays for shared building maintenance, governed by Article 9.1.e of the Ley de Propiedad Horizontal (Ley 49/1960). The article states that each owner must “contribute, according to the participation quota fixed in the title, to the general expenses for the adequate maintenance of the building, its services, charges and responsibilities that cannot be individualised.”

The proration itself works the same way as IBI: the annual community fee is split per day between buyer and seller based on the signing date. But community fees carry a critical additional risk that IBI does not: the buyer inherits the seller’s unpaid community debts.

The community debt inheritance rule

LPH Article 9.1.e establishes that the buyer of a property in a community of owners “responds with the property itself for the amounts owed to the community for general expenses by the previous owners, up to the limit of those attributable to the current part of the annual period in which the acquisition takes place and the three preceding calendar years.” The property is legally encumbered for these debts, meaning the community can pursue the new owner for the previous owner’s unpaid fees.

This is why the notary plays a gatekeeping role. The same article requires the seller to declare at signing whether they are up to date with community payments or to specify what they owe. The seller must provide a certificate of debts (certificado de deudas) issued by the community secretary with the president’s approval, confirming the payment status. The notary cannot authorise the deed without this certificate unless the buyer expressly waives the requirement, a waiver that is risky and uncommon.

The practical protection for buyers is twofold. First, the certificado de deudas reveals any existing debt, allowing the parties to deduct the outstanding amount from the purchase price or require the seller to clear it before signing. Second, even if a hidden debt surfaces later, the buyer’s liability is capped at the current year plus three prior calendar years, and the buyer has a right of recourse against the seller. Our guide to community debt on Spanish property covers the inheritance rule and buyer protections in depth.

Who pays the plusvalia municipal at completion?

The plusvalia municipal (IIVTNU, Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana) is a local tax on the increase in land value during the period of ownership. It is paid by the seller, not prorated, because it taxes the seller’s period of ownership as a whole. The Consejo General del Notariado confirms that the plusvalia is one of the costs borne by the seller under the default cost distribution.

Since the Constitutional Court ruling STC 182/2021 and the subsequent reform under RDL 26/2021, the seller can choose between two calculation methods: the objective method (based on the valor catastral and years of ownership) and the real-gain method (based on the actual difference between purchase and sale price). If the property was sold at a loss, the real-gain method produces zero tax. The seller has 30 working days from signing to file and pay.

The plusvalia is not prorated because it is not a recurring expense but a one-off tax on the land value gain realised during the seller’s entire ownership period. The buyer has no liability for it. Our guide to the plusvalia municipal explains both calculation methods and the Constitutional Court reform.

How are utilities settled at the signing table?

Water, electricity and gas accounts are settled by taking a meter reading on the signing date. Each party pays for the days they owned the property, based on the most recent bill and the reading. The settlement is typically calculated by dividing the latest monthly bill by the number of days in the billing period and multiplying by the days each party held the property.

In practice, the seller usually provides the most recent utility bills at signing, and the parties agree a settlement figure. If the seller has prepaid utilities beyond the signing date, the buyer reimburses the pro-rata amount. If the seller has unpaid bills, the buyer deducts the pro-rata share from the balance due. The notary records the settlement in the deed.

The buyer must also arrange transfer of the utility accounts into their name after signing. This requires providing the utility company with a copy of the deed and setting up a new direct debit. The process is separate from the proration settlement and is the buyer’s responsibility.

How do the arras apply at completion?

The arras (deposit) paid at the reservation stage is credited against the purchase price at completion. If the buyer paid a 5% or 10% deposit as penitential arras under Article 1454 of the Codigo Civil, that amount is deducted from the balance due at signing. The arras are not an additional cost but an advance payment applied to the total price.

For example, on a EUR 500,000 purchase with a 5% arras deposit of EUR 25,000, the buyer pays the remaining EUR 475,000 at the notary. The arras are not prorated or split because they form part of the purchase price itself. Our guide to the arras contract explains the penitential and confirmatory types and what happens if either party withdraws.

A worked example: proration on a EUR 500,000 purchase

Consider a EUR 500,000 resale apartment in Marbella, signed on 15 July 2026 (day 196 of 365). The seller owned the property on 1 January 2026. The annual IBI is EUR 1,200, the monthly community fee is EUR 150, and the seller paid EUR 1,800 in penitential arras. The table below shows the proration settlement.

Item	Annual amount	Seller’s share (days 1-196)	Buyer’s share (days 197-365)	Settlement
IBI	EUR 1,200	EUR 644 (196/365)	EUR 556 (169/365)	Buyer deducts EUR 644 from balance
Community fees	EUR 1,800 (EUR 150/month)	EUR 967 (196/365)	EUR 833 (169/365)	Buyer deducts EUR 967 from balance
Utilities (water + electricity)	EUR 1,200/year	EUR 644 (196/365)	EUR 556 (169/365)	Buyer deducts EUR 644 from balance
Arras credit	EUR 1,800	n/a	n/a	Deducted from buyer’s balance
ITP (7% Andalusia)	EUR 35,000	n/a (buyer pays in full)	EUR 35,000	Buyer pays separately after signing
Plusvalia municipal	Variable	Seller pays in full	n/a	Seller files and pays within 30 days

In this example, the buyer’s deductions total EUR 644 + EUR 967 + EUR 644 + EUR 1,800 = EUR 4,055, reducing the balance due at signing from EUR 500,000 to EUR 495,945. The ITP of EUR 35,000 is paid separately by the buyer within 30 working days, and the plusvalia is paid by the seller within the same window. The notary fees and registry costs, typically EUR 600 to EUR 1,800 for the notary and EUR 400 to EUR 1,100 for the registry, are paid by the buyer at signing.

What should a buyer check before signing to avoid proration surprises?

The proration settlement at the notary is only as accurate as the figures behind it. A buyer should arrive at signing with four documents verified: the latest IBI receipt (recibo del IBI) showing the annual amount and confirming it is paid, the certificado de deudas from the community confirming the seller’s payment status, the most recent utility bills for the per-day calculation, and proof that the arras deposit is held and will be credited.

The certificado de deudas is the most critical. Under LPH Article 9.1.e, the community secretary must issue it within seven natural days of request, with the president’s approval. If the certificate reveals unpaid community fees, the buyer should require the seller to clear them before signing or deduct the outstanding amount from the purchase price. A buyer who waives the certificate requirement inherits whatever debt exists, up to the current year plus three prior calendar years, with the property itself as security.

The conveyancing timeline guide and the Spanish notary guide cover the full sequence of steps from offer to keys, including which documents to prepare and when. For the total cost picture beyond proration, the cost of buying property on the Costa del Sol guide breaks down the 12 to 15% total acquisition cost.

This guide is general information, not legal or tax advice. Rules change and individual circumstances differ. Verify current requirements with an independent lawyer (abogado) or tax advisor (gestor/asesor fiscal) before acting.