Property Taxes in Spain

The Spanish government has imposed various types of taxes on properties to revive its economy. If you want to buy, sell or mortgage the property in Spain, you must proper knowledge about property taxation system in Spain. There are several types of taxes in place to the peoples that are involved in the Property business in Spain. Capital Gain Tax, Taxes on buying a property in Spain, Taxes on selling a property in Spain, and Taxes on owning a property in Spain are the common examples of such taxes.

Today, we’ll discuss these common types of taxes being imposed by the government in different parts of the country.

Capital Gain Tax

This is subject to taxation obtaining a capital gain in the result of selling of a property. A reform in this tax is being made in Spain at the beginning of 2015. The net gain is determined by the difference between the values of transmission and acquisition.

Capital gain tax on selling of a property in Spain is 19% of the total amount excluding of interest. However, it is advisable to study on the case to case basis as there are several peculiarities in existing law.

Selling Tax on Property in Spain

There are numbers of costs involved for a seller at the time of selling a property in Spain. The selling process contains the costs against the following procedures.

ü Notary

ü Tax Selling Property

ü Plusvalia Tax

ü Capital Gain Tax

ü Banking Costs

ü Stamp Duty

ü Land Registry

ü Administrative Manager Cost

ü Real Estate Agency Fee if Applicable

ü Lawyer Fees in Applicable

To sell a property in Spain at a good price, your property should be in good shape both from the legal and physical point of view. In the case of reporting a defect and take legal action, there is the bounding that it must be in between the time frame of six months.

Buying Tax on Property in Spain

The actual cost of the property is not the price you see in advertisements; there are several types of other expenses you have to bear at the time of buying a property in Spain. Some common examples in this regard are stated as under.

ü Notary

ü Land Registry

ü VAT Tax (Known as IVA tax in Spain)

ü Stamp Duty

ü Transfer Tax

In Case of Mortgage

ü Property Appraisal

ü Disbursement Fee

ü Land Insurance

ü Stamp Duty

ü Notary

ü Administrative Manager Cost

ü Real Estate Agent Fee if Applicable

ü Lawyer Fees if Applicable

ü Banking Cost

There can be variation in above-mentioned costs due to various reasons e.g. type of property, old or newly built, and the area where you are buying etc.

Taxes on Owning a Property in Spain

Owning a property in Spain is a great source of mental satisfaction by having your own space. However, only few can afford such luxury due to heavy taxes in this regard. Costs includes;

ü IBI Taxes (0.3 to 1.1% of the total cost)

ü Income Tax (around 24%)

ü Wealth Tax

ü Owners Community Fee

ü Maintenance, Repair and Damage Fee

July 11, 2017

Leave a Reply

Your email address will not be published. Required fields are marked *