Costa Brava Direct Brokers

  REAL ESTATE  

In Spain property taxes are collected after self-declaration.The goverment will not contact you but when it becomes apparent that you have not paid, they will fine  you a surcharge of 20%.

There is also a difference for Spanish citizens and non-residents.

Impuesto de Transmisiones Patrimoniales. (Transfer tax)

When you buy a property from a private person you have to pay 7% tax on the declared value.If you do not pay this tax, it is impossible to get you property registered at the landregistry.

Impuesto de Valor Añadido (V.A.T.)

When you buy a plot from a developer or company, you have to pay 16% V.A.T. When you buy a plot together with the construction of a villa, you pay 7% tax on the total value of plot and construction.

If you build a garage and pool together with the villa, the V.A.T will be also 7%. When you decide to build it later, the V,A,T will be 16%.

The V.A.T you pay direct to the seller and he will give you an official invoice.

Impuestos de Actos Juridicos Documentados(new building declaration)

If you declare a new building you have to pay 0,5% to the Spanish state.

Impuesto de Bienes y Inmeubles (Townhall Tax)

This yearly tax you have to pay between june and september and the  amount is calculated by the townhall. It will be between 0,2 and 0,4 % of the value of the property.

Impuesto sobre el patrimonio (Wealth tax) All not residents in Spain with a property have to pay this tax. The amount will be about 0,2% on the value of the property. The residents pay this amount with their yearly tax declaration.

Impuesto sobre la renta de personas fisicas (Income Tax)

Only for people not living in Spain and owner of a property. The amount of this "Rent Tax"is 25% over 2% over the value of the property. Incase you are renting out the property, you have to pay 25% on the income to the Spanisch state. For the period you are not letting the property, you have to pay the above menTioned tax (Rent Tax)

Plusvalia(Tax over the increase of value of the property)

When you sell a property, the townhall will charge you an amount. The amount depends on how long you have been owner of the property.The maximum will be about 1,5% over the value of the propertry.

Impuesto sobre incremento de patrimonio en la venta de bien inmeubles(Capital Gains Tax)

When you are a non- resident and  you sell, there is a profit between the purchaseprice including all costs and taxes and the sellingprice, you have to pay 18% tax on this profit. There is some reduction if you bought before 1996 .The spanish goverment wants to be sure that you are paying this tax and therefore the buyer of your property has to pay 3% of the value described in the deed to the spanish state in your name. So you receive 97% of the sellingprice. This is a payment on account.

When you are a resident, you will pay 18% over the profit you have made. Only when you have the property for more than three years, it is your only residency in spain and your are investing the profit in a new property, you do not have to pay this tax.