Spanish Property Taxes

Home >> Spanish Property >> Spanish Property Taxes

Wednesday, 29 Oct 2008

Property Taxes In Spain

What taxes must be paid for the purchase of a home in Spain?

• VAT: VAT applies only to the first conveyance of a new home (direct purchase from the developer). The tax burden is calculated by applying the relevant rate to the price stated on the deed of sale (7% with homes purchased on the free market and 3% with government-subsidised and public housing).
• Property Transfer Tax: This tax is levied on the second conveyance of a home. It is equal to 7% of the price stated on the deed of sale (although this rate may vary from one autonomous community to another: see Appendix V). With government-subsidised housing, the rate ranges from 3% to 7%, depending on the autonomous community (see Appendix V).
• Stamp Duty: The rate depends on the autonomous community and the type of home (applicable to first home conveyances and mortgage liability with mortgage loans: see Appendix V).
• Real Estate Capital Gains Tax: This tax depends on the land's rateable value, how many years have elapsed since the property was purchased and the municipality where the home is located. The seller is the party legally bound to make this payment, unless otherwise specifically agreed.

Once you have checked all the documents, you will be ready to go forward with the purchase. To this end, you will need to make your payment in cash or by taking out a Spanish Mortgage.

Related Links

Selling Spanish Property

Buying Spanish Property (part 2)

Buying Property In Spain

Cut Price Costas

Spanish Property Price Drop

Buy one Spanish home, get one free

Spanish Property Prices Could Fall By 50pc

Spanish Property Slump Pressures Banks

Spanish property problems deepen

Spanish property crisis