VAT (IVA): Value Added Tax (Impuesto sobre el Valor Añadido or IVA) and documentary stamp duty (Impuesto sobre Actos Jurídicos documentados or IAJD): These taxes do apply to newly built properties and are paid the first time a property is sold normally by the developer (comprador) of the property. The IVA rate is 7% of the selling price and the IAJD is fixed between the 0.5% and 1.5% of the selling price depending on the Autonomous Region (Comunidad Autónoma) involved. If a deposit is given before signing the Sales Deed (Escritura de Venta) a 7% IVA tax will apply. IVA and IAJD are paid directly by the seller to the Tax Collection Agency (Agencia Tributaria).