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ITP – Impuesto sobre Transmissiones Patrimoniales – or Transfer Tax – is levied where VAT is not.
This is charged at 7% of the purchase price of the property.
The associated costs in a property purchase transaction are usually around 10% of the purchase price and one or the other of the two taxes is usually covered within the 10%.
This is charged at 7% of the purchase price of the property.
The associated costs in a property purchase transaction are usually around 10% of the purchase price and one or the other of the two taxes is usually covered within the 10%.
ANNUAL REAL ESTATE TAX (Impuesto de Bienes Inmuebles – IBI) - the IBI must be paid in one payment every year.
The Lawyers can arrange payment of this tax to be domiciled through your Spanish bank account.
WEALTH TAX - non-residents in Spain must pay Wealth Tax (Patrimonio) on all assets in Spain.
Assets include property, bank account and other assets with a determined value.
This is a very small tax.
PROPERTY INCOME TAX -residents who own property in Spain must prepare a Tax Declaration Form for the Tax Authorities.
Non-residents are taxed at the flat rate of 25% on any income arising in Spain.
FORMALITIES - any person who has a property in Spain, but does not live there all the time, must nominate a resident “Fiscal representative” to whom the Tax Authorities can send all related matters.
The Lawyers can usually offer this service to you.
This is a very small tax.
PROPERTY INCOME TAX -
FORMALITIES -
CAPITAL GAINS TAX - Capital Gains Tax is payable based upon the increase between the original purchase price of a property and the selling price.
This Tax applies theoretically to the seller and is levied at 35% to non-residents.
Anyone purchasing a property from a non-resident must withhold 5% of the purchase price which is then paid to the Tax Authorities on account of any liability by the vendors.
The vendor then has two months in which to pay the rest of this tax.
However, there are factors that can be taken into consideration to reduce the amount paid, such as the cost incurred with the original purchase, etc and the Lawyers can assist in this area.
However, there are factors that can be taken into consideration to reduce the amount paid, such as the cost incurred with the original purchase, etc and the Lawyers can assist in this area.
Should you have any specific questions regarding the above Please contact us by email and we will send you the answer as soon as possible
