The VAT charged on the first sale of a new home by the developer: 10% on homes, outside the Canary Islands.
The reduced 10% rate applies to homes and is set by art. 91 of Ley 37/1992. It is paid to the developer with each payment and replaces ITP, which applies to resale homes. The deed also pays AJD. In the Canary Islands, IGIC applies instead.