Transfer Tax (ITP) (increased from 6% to
7% Jan 2003)
ITP at 7%.is applied to
second hand or re-sale properties
This is 7% of the declared sale price, payable on the property.
you are obliged to pay Transfer Tax (ITP)
Commercial VAT (IVA)
IVA Plots of land
for commercial or warehouse space the required VAT (IVA) rate increases
to 16% of the cost.
Vat on IVA is applied to New Properties, or
properties partly constructed by a developer,
builder or selling agent, you would be expected to pay VAT (IVA) at 7%
plus Stamp Duty at 0,5%
Plus Valía Tax
Plus Valia is a localised tax
which is payable to the local Municipal or Town Hall.
This tax is
evaluates on the Catastral Value,
land mass or area, and the age of the original title deed.
Normally payable by the vendor but it may be stipulated that the buyer
pays. This tax may range from a few thousand pesetas to as much as
several million pesetas on larger properties with a lot of land. Who
pays this will be discussed in the negotiations and in consultation with
your lawyer. As a rule of thumb , if you budget for ten percent of the
purchase price you will not be far wrong.
Plus Valia can be small if purchasing a new property , or quite a large
amount for a property that has not been sold for 20 years. The seller
usually pays this tax, but it is wise to ask your Lawyer.
All property in Spain is subject to 2 taxes.
Patrimonio is charged at the rate of .2% up to the amount of € 150,250
euro ( 25m ptas).
90k euro (15m ptas) an amount of € 180
euro (30k ptas) will need to be paid,
Spanish Residents have an exemption for the first € 100k
euro (17m ptas).
owners income tax,
IRPF is based upon 2% of the Valor Catastral (thought to be your income
from the property) and this is paid upon the imaginary income at the
rate of 25%.
As an example, on a Valor Castral of 15m ptas the bill would be € 450
euro (75k ptas).
sobre Bienes Inmuebles
is the Town Halls annual real estate tax. The previous owner has to give
you the previous years receipt for this annual tax, without it the
Notary may not allow the completion of the property to take place. This
receipt will show the Valor Catastral, which is the official assessment
of the property value and is used to asses the tax.