Taxes
If you bought property in Spain, you will automatically come in contact with the taxes related to it. Below you will find a short overview of the different kind of taxes that you might encounter.
Taxes Concerning the Buying of Property
Patrimonial Tax (Impuesto de Transmisiones Patrimoniales = ITP)
If you buy an existing house of an individual person, you pay 8% in patrimonial taxes. Moreover, you have to take into account that when purchasing property, approximately 2% in costs will remain to be paid (notary, registration register, gestoria (consultant costs)).
- VAT (Impuestos sobre el valor anadido = IVA)
When you buy a plot of a non-individual person, you pay 18% VAT. - When you buy a newly built house (plot + house) of a constructor, you pay 7% on the total amount.
- When you buy a newly built apartment, you pay 7% on the total amount.
- When you buy a plot first and later decide to build a house, you pay 18% VAT on the plot and 7% on the constructed house.
Non-residential Tax, 3 %
When buying property from a non-resident (someone who does not live in Spain permanently), you need to deduct 5% of the sales price and transfer this amount directly to the Spanish Tax and Customs Administration. The tax authorities holds the buyer responsible for this payment. Of course, we draw your attention on this matter to ensure everything goes well.