The transferee must pay the tax at a rate up to 10 % of the purchasing price, depending on the region where the property is located. In case of purchasing a movable or personal property, rates also depend on the region where the purchase takes place.
Who pays transfer tax in Spain?
2.1 Spanish Transfer Tax (Impuesto sobre Transmisiones Patrimoniales – ITP) This tax applies if the property is deemed to be a second or posterior transfer (i.e. not the first time a newly built home is bought), and is paid by the buyer.
How much is property transfer tax in Spain?
A transfer tax, which is usually 5% to 11%, depending on the region, is generally levied on inter vivos transfers, including real estate transfers and real estate leases that are exempt from VAT.
What taxes do you pay when selling a property in Spain?
Selling property tax: How much is selling property tax in Spain? When selling a property in Spain you need to be aware of the payment of Plusvalia and Capital Gains Tax. The payment of Capital Gains Tax is between 19% and 24% and Plusvalia would be a percentage of the sale.
How much council tax do you pay in Spain?
The tax payable will usually be very low, based on a taxable amount of 1.1 per cent of the rateable value, taxed at the rate of 19 per cent.
What are the pitfalls of buying property in Spain?
Some of the common pitfalls of buying a property in Spain include deposit, purchase tax, issues with off-plan properties and properties being built illegally. During your research into buying a property in Spain you will have come across many stories of purchases in Spain gone wrong.
What is AJD in Spain?
The Spanish AJD Tax
The AJD (Actos Jurídicos Documentados) is a tax on notarial acts to be paid to the public administration through the different Autonomous Regions. Depending on where the property is located, the amount can vary between 0.5% and 1.5%.
What is the Plusvalia tax in Spain?
What is the plusvalia tax in Spain? The plusvalía is a local (municipal) tax charged by the town hall on properties when they are sold. It is calculated on the rateable value of property and the number of years that have passed since the property last changed hands.
What taxes do you pay in Spain?
Currently the Spanish income tax rates are as follows:
- Spanish income tax for incomes up to €12,450: 19%
- Spanish income tax for incomes ranging from €12,451 to €20,200: 24%
- Spanish income tax for incomes ranging from €20,201 to €35,200: 30%
- Spanish income tax for incomes ranging from €35,201 to €60,000: 37%
Who holds the 3% capital gains tax when you sell a property in Spain?
When a non-resident sells property in Spain, they buyer is obliged to retain 3% of the price and pay it to the tax authorities to cover the vendor’s Capital Gains Tax (CGT) liabilities. If the 3% retained exceeds the taxes due, the vendor can expect a refund once all taxes have been paid.
Do you have to pay capital gains when you sell your house in Spain?
This means that capital gains tax is one of the main taxes you will be charged if you sell your property (e.g. your house) in Spain. In countries like the UK, the CGT works independently. However, in Spain capital gains is integrated with the IRPF (personal income tax) in accordance with the Spanish tax system.
How long do u have to live in a house to avoid capital gains?
Live in the house for at least two years. The two years don’t need to be consecutive, but house-flippers should beware. If you sell a house that you didn’t live in for at least two years, the gains can be taxable.
What is Spanish Suma?
Website: www.suma.es. Suma Gestión Tributaria (Suma) is a 100% public provincial agency set up by the Provincial Council of Alicante (Spain) in 1990. It specializes in tax administration: assessment, billing, collection and enforcement. Suma collects the taxes on behalf of each city council with own resources.
Do you pay council tax when living in Spain?
If you’ve bought a property, you’ve likely come across IBI in Spain. This tax is basically Spain’s equivalent of council tax. Impuesto sobre Bienes Inmuebles, or IBI, is a tax that every property owner in Spain has to pay.
How much is non resident tax Spain?
Non-resident taxpayers in Spain are taxed at the rate of 19-24 % on income earned in Spanish territory or income that arises from Spanish sources such as property. Specific rates apply to other kinds of income.