Tax Laws
Charges, Who Pays for What?
It is the seller who pays the real estate taxes shown below:
Capital Gains Spanish Tax (Plusv
alía)
Notary Charges
Real Estate Charges
Solicitors Fees
It is the buyer pays the Spanish real estate taxes shown below:
Transfer Spanish Tax (I.T.P) or IVA
Real estate Registery Fees
Notary costs
Legal Charges
The Charges Connected with Buying Spanish Real Estate
When you have finally found the home of your dreams, you should not forget the Charges connected with buying this property. The amount should approx. 10 % of the “declared” purchase price.
What Spanish Taxes are due on purchases a Real Estate?
There are two different Spanish Taxes, depending on the situation regarding the real estate you are buy.
In the case of purchasing newly built real estate from a developer you pay VAT called ” IVA : Impuesto sobre el valor añadido”, which will be 7 % + 1
% Spanish Stamp Duty of the contract price or 16 % on land.
When you are purchasing a resale, you will pay a Spanish transfer Tax
called ” I.T.P - impuesto de transmisiones patrimoniales “, which is charged at 7 % of the declared price.
Another Spanish Tax that has to be paid is the Municipal Plusvalia. This is a Spanish Tax set by the local Town Hall and based upon the increases in the value of the land & the real estate from the time the owner acquired the real estate to the date of the current sale. Mainly paid by the seller. This is a separate Spanish Tax, and will not be included in the 10 % of the purchase price charge.