Web Stats

Last updated:

23/05/2013 12:04:00

Mailing List

Join our Newsletter and be the first to know about our new properties and other news. Enter e-mail:.

PURCHASING A PROPERTY IN SPAIN


Important Information Regarding Taxes and Fiscal Obligations When Buying, Selling or Leasing Homes in Spain

Purchasing a Home

-First inscription of a home, garage and storage unit: if you sign the title deeds for them at the same time as the home and are purchasing no more than 2 garages and 1 storage unit the VAT is 8%.

-First inscription of garages and storage units: the VAT is 18% if you purchase them separately from the home.

-Purchase of a plot: The VAT is 18% if the seller is a company. ITP tax is 8% if the seller is an individual.

-Second inscription for homes, garages and storage: The ITP is 8% when the buyer and seller are companies; the sale may be subject to 18% VAT. A purchase can be exempt from the ITP, when the purchaser is entitled to one hundred percent deduction of VAT and both the seller and the purchaser are subject to VAT.

Important: Check that the seller is current on his property tax payments.

-The home buyer will retain 3% of the purchase price if the seller is a non-tax resident in Spain, and the buyer will be responsible for depositing it with the Tax Office. (Hacienda)

-The non-tax resident will need the certificate of registration from the Central Register of Foreigners (el Registro Central de Extranjeros) and a NIE number.

-Additional costs when purchasing:

Notary and Land Registry: Depending on the type of title deed that it is, the amount of the transaction, if there is a mortgage, this cost can fluctuate. We advise all of our customers about the costs of the title deeds and property registry.

AJD Tax: When there is a mortgage, 1% of the mortgage liability is calculated taking into account the amount of the mortgage loan plus interest and costs for three years (depending on the conditions of the loan) and usually reaches an amount of approximately 1.5% of the loan principal.

PlusValue Tax: Under the law it is applicable to the seller, unless otherwise agreed. It is a tax on property and therefore must be paid at the time of the signing of the title deeds.

Algar Villas offers this information only as a guide.
Go to Part II Tax Information

Go to Part II Tax Information


Altea Apartamentos Chalets Compra Venta Alquiler



PURCHASING A PROPERTY IN SPAIN PURCHASING A PROPERTY IN SPAIN PURCHASING A PROPERTY IN SPAIN

Short Cuts

Apartments

Building

Country Houses

Duplex

Fincas

Flats

Garages

Luxury Villas

Penthouses

Plots

Premises

Semi-detached Houses

Terraced Houses

Town Houses

Villas