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1) Transfer Tax (Stamp
Duty)
There is no stamp duty threshold as in England and you
will be required to pay At the appropriate rate based on the declared
price. If you buy a new property from A developer I.V.A. (Spanish VAT) is
charged at the rate of 7% of the declared price. In addition you will have
to pay a further 1.0% for the Legal Documented Deeds Tax. If, on the other
hand, you buy a resale property, the Transfer Tax payable is usually
7%.
2) Land Registry
Fees
The fees charged for registering the property at the Land
Registry generally be in the Region of £300 to £600.
3) Notary’s
Fees
These will amount to approximately £350 to £700.
4) Legal
Fees
The fees that your lawyer charges will, as in England,
vary from firm to firm. You Should allow between 1-1.5% of the purchase
price.
5) Sundry
Expenses
You should allow another £200 to cover miscellaneous items
such as fees for carrying Out searches against the property at the Land
Registry and Town Hall, bank charges Etc.
In addition to the above you will also be liable for bank
arrangement fees, valuations and brokerage fees.
Other taxes
Income Tax:
Income
tax is due only when you are employed in Spain or a resident of Spain,
however not on funds obtained in Spain.
Property Tax:
Owner
of the property pays between 0.3% and 0.6% property tax. The percentages
differ from county to county. Both residents and non-residents pay
property tax.
Vehicle Tax:
Vehicle
tax is based on the weight of your vehicle but is considerably lower than
Holland or Belgium.
Tax on the increase property
value:
If you own a property for a minimum of five years and
sell it to a resident of Spain you are not taxable.
Capital gains
tax:
Capital gains tax is 16% when you sell assets like
antiques, art, jewelry or stock at a profit.
Transfer tax
:
Transfer tax is 7% of the official amount registered.
Sales tax (1):
Sales
tax is 7% when buying land from a professional land broker
Sales tax (2):
If you
own a property for ten years or more and decide to remodel the sales tax
will be 16% If you would decide to remodel directly after purchase the
sales tax will be 7%.
Construction tax
:
(=Impuesto sobre construcciones, instalaciones y
obras)
For the application for a building permit you will be
charged between 0.3% and 0.5%. The percentage differs per county. The
architect often includes the percentage in his fee and will pay this tax
for you.
When you decide to buy real estate in Spain through a
professional agency like Global Estates.co.uk or GARU Real
Estates you will be dealing with the latter form of sales tax (IVA).
The percentage charged by the Spanish government can vary. Following are
some examples.
- When buying commercial property, you will
pay 16% IVA.
- When buying a building site without any
structures, you will pay 16% IVA.
- If you buy a building site and have a
structure built on it directly by a developer (purchase of site and
construction order in one contract) you will pay 7% IVA.
- If you buy an existing house from a
developer or a contractor you will pay 7% IVA.
- If you, together with the house, have a
pool, terrace or garage built, you will pay 7% IVA.
- If you have a terrace, pool or garage built
after the construction of your house, the IVA will be 16%.
- If you have an existing house renovated and
the costs of the renovation amount to more than 25% of the value of the
property before the renovation, you will pay 7% IVA.
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