It is necessary to be prepared for this: property taxes in Spain

In Spain, all real property transactions are transparent and reliable in legal terms. A notary, as well as a realtor, takes part in the conclusion of the contract, which adds official “witnesses” to the transaction, who legitimize and confirm by their presence the transfer of property from the seller to the buyer. But it’s better to know in advance what taxes you have to pay when buying apartments for sale in Valencia. Let’s talk in more detail about each one.

10% is VAT for housing and 21% is for commercial property or land

The tax that is paid only in case of buying new real property from a developer. The Canaries have their own special VAT tax – it is 4.5%.

Stamp tax

This column hovers around 1 percent of the total cost of housing and depends on regional laws. For example, the Catalans have set the stamp tax at 1.5 percent.

Property transfer tax

This type of fee is paid in the case of the purchase of a secondary housing. The amount of the tax also depends on the region, the national average is 7 %. But there is also a strong deviation, for example, in Valencia you have to pay 10%.

Reserve income tax

It would seem to be bare maximum taxes But no: the reserve tax concerns when the owner who sells the property is not a resident of Spain. The amount of the tax is another 3 % of the property value.

Personal income tax

The Spanish Kingdom has a graduated rate of income tax. The minimum value is 19 %, the maximum is 45 %. The maximum tax is paid in the case when the income exceeds 60 thousand euros.

Upon the sale of housing or commercial property, this type of tax is levied on the received and declared profit. For example, if housing is sold for 300 thousand euros, and a few years ago it was bought for 200 thousand, then only 100 thousand difference becomes the taxable base.

Non-resident income tax

If the seller is not a resident of the country, then the revenue from the sale is taxed on the income of non-residents, and income tax is levied when such housing is rented with super home decor. It should be understood when the housing is not rented, and the proprietor has no other income in the country, then he pays tax on the income of non-residents. This tax is calculated as follows: 24% of 2% of the cadastral value of the property.

Associated payments

Another column of expenses in real property transactions is associated payments. These are expenses for a notary, for legal support, registration of property (state fees), checking the condition of a property for encumbrances, debts for utilities, and so on. It is worth including these expenses in the budget for the acquisition of housing: although not all of them are mandatory, their presence will definitely protect you from an unsuccessful purchase, and your new apartment in sunny Spain will only bring you joy especially with the bathroom heat lamps. 

Get assistance in selection of housing in Spain

To make the transaction for the purchase of housing in Spain go smoothly, we recommend you to contact the specialists of the agency Spain-Real.Estate. Professional realtors will advise you, tell you about all the opportunities of movement to the country, and help with the selection of housing. The company renders assistance in transactions, performs all reviews, offers legal support.

Start searching for housing in Spain now!

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