• All
  • House/Chalet
    • Single family house
    • Semi-detached house
    • Villa
    • Luxury Villa
    • Terraced house
    • Bungalow
  • Garage
    • Parking
  • Premises or Warehouse
    • Business Premise
  • Apartment
    • Apartment
    • Penthouse
    • Duplex
    • Flat
    • Duplex Penthouse
  • Land
    • Urban Plot of land

Encontramos la casa de tus sueños

  • All
  • House/Chalet
    • Single family house
    • Semi-detached house
    • Villa
    • Luxury Villa
    • Terraced house
    • Bungalow
  • Garage
    • Parking
  • Premises or Warehouse
    • Business Premise
  • Apartment
    • Apartment
    • Penthouse
    • Duplex
    • Flat
    • Duplex Penthouse
  • Land
    • Urban Plot of land
News
Taxes on property purchases in Spain
 11

  MAY

Taxes on property purchases in Spain

Make sure you pay the corresponding taxes


If you're planning to take the plunge and buy real estate in Spain, you’ll want to consider the various taxes you’ll have to pay when planning out your budget. These taxes may vary depending on a variety of factors—such as the type of property you want to buy, the municipal jurisdiction it’s located in, and the total floor space.
 
 

Buying a new building

If you want to buy a brand new property, you'll have to pay two types of taxes:
  • Value Added Tax (IVA—Impuesto sobre el Valor Añadido): Value added tax (or VAT for short) is a general, indirect tax levied on the purchase of goods or services. Value-added tax on new buildings carries a reduced rate of 10% on the sale price of standard properties, and 4% in the case of publicly-subsidized housing. If you purchase a property in the Canary Islands, you'll either have to pay the Canary Islands General Indirect Tax (IGIC) of 7%, or a tax of 5% for a “primary residence” purchase. This second tax is applicable if the taxable base doesn’t exceed €150,000 (though the limits for large families are higher) and you aren’t already a home or usufructuary owner. If you're buying a house in Ceuta or Melilla, you'll have to pay the Tax on Production, Services, and Importation (IPSI).
  • Stamp Duty (AJDImpuesto sobre Actos Jurídicos Documentados): Stamp duty is levied on public deeds and is part of the Conveyance Tax and Stamp Duty—an indirect tax applied to transfers of property for valuable consideration, corporate transactions, and notarized legal acts. This tax is applied to the purchase price, and rates vary in each region.

Buying a non-new property

Besides the purchase price itself, taxes are one of the most significant expenses to consider when buying a formerly-used property. Here, you’ll need to pay transfer tax (ITPImpuesto de Transmisiones Patrimoniales) instead of VAT. The ITP rate varies according to your region as well as your personal circumstances, with rebates for those under 30 years old, first home buyers, real estate in rural areas, or those with large families. You’ll need to calculate what you owe using an official tax self-assessment, and then transfer the amount to the Spanish Tax Office account via one of its partner banks.
To give you an idea of the figures, the following table shows the ITP transfer tax rates for several regions:
 
Autonomous Community ITP rate
Andalusia 8%
Balearic Islands 8%
Canary Islands 6.5 %
Castilla La Mancha 9%
Catalonia 10%
Community of Madrid 6%
Extremadura 8%
Galicia 10%
Murcia 8%
Basque Country 4%
 
 
Name*
Email*
Comments*

Subscribe

Receive new properties

Diseñado por CRM Inmovilla

Responsable: XXXXX

Finalidad: To send information about real estate that match the requirements of the client presented by filling this form.

Legitimación: To implement pre-contract measures to the clients request (budget request or information about our professional services).

Destinatarios: This data will arrive at the office and there is no expected data transfer if not for legal obligation.

Derechos: You may use your right to access, modify, suppress, oppose, transfer or withdraw your consent on your personal data through the email XXXXXX@XXXXXXX.es

Responsable: XXXXX

Finalidad: To send information about your property to the real estate agency so it can evaluate if it will offer your property to its clients to try to sell or rent it.

Legitimación: The legitimacy is based on the consent you gave us when clicking the button “I accept the data protection policy”.

Destinatarios: The client’s data won’t be transferred to anyone, if not for legal obligation. The real estate’s data might be delivered to collaborating real estate agencies or published on web pages and real estate portals.

Derechos: You may use your right to access, modify, suppress, oppose, transfer or withdraw your consent on your personal data through the email XXXXXX@XXXXXXX.es

Responsable: XXXXX

Finalidad: To handle information requests through the website, aiming to offer real estate professional services and to give information about what’s requested.

Legitimación: The legitimacy is based on the consent you gave us when clicking the button “I accept the data protection policy”.

Destinatarios: Your data won’t be transferred to anyone, if not for legal obligation.

Derechos: You may use your right to access, modify, suppress, oppose, transfer or withdraw your consent on your personal data through the email XXXXXX@XXXXXXX.es

Responsable: XXXXX

Finalidad: To handle information requests through the website, aiming to offer real estate professional services and to give information about what’s requested.

Legitimación: The legitimacy is based on the consent you gave us when clicking the button “I accept the data protection policy”.

Destinatarios: Your data won’t be transferred to anyone, if not for legal obligation.

Derechos: You may use your right to access, modify, suppress, oppose, transfer or withdraw your consent on your personal data through the email XXXXXX@XXXXXXX.es