New purchase tax
If you buy a brand new home, you will be liable to pay 10% IVA (VAT) on the overall price of the property. In addition to IVA, you will be liable to pay an extra 1.5% stamp duty. If you buy land in Spain, the IVA you are liable to pay increases to 21%.
Transfer tax
If you buy a property that is being re-sold, you will be liable to pay a transfer tax. In Spain, this tax is called Impuesto de Transmisiones Patrimoniales (ITP). Transfer tax is typically 8% of the total price of the property, however, in some Spanish regions, this can rise up to 10%.
Local property taxes
Every owner of a residential property in Spain must pay a local tax called IBI (Impuesto sobre Bienes Inmuebles). IBI is paid annually, and collected at different times of the year according to the area you live in.
Every owner of a residential property in Spain must pay a local tax called IBI (Impuesto sobre Bienes Inmuebles). IBI is paid annually, and collected at different times of the year according to the area you live in.
The amount you are liable to pay is based on the 'Valor Catastral', which is the rateable value of your property.
The amount you are liable to pay is based on the 'Valor Catastral', which is the rateable value of your property.
For rustic properties, the IBI is set at 0.3% of the 'valor catastral'; for agricultural properties, it's around 0.5%. Some larger towns and cities in Spain may impose a higher IBI rate because of the extra facilities they provide.
Plusvalía Tax
After a property is sold in Spain, the seller must pay the local town hall a plusvalía tax. Like IBI tax, this is calculated on the 'valor catastral' (the rateable value of the property), plus the number of years since the property was last sold.
How can Premium Spain Homes help?
The information provided in this guide is intended to provide you with an overview of the property tax rates you have to pay in Spain
At Premium Spain Homes, our property experts boast over 20 years' experience of the Spanish market. So if you need legal advice or tax support with your property purchase, we can help make things incredibly clear-cut and simple.
For more information about the legal advice and services we offer, click here.
Or to speak directly to one of our property experts about making your dream of living in Spain a reality, contact us today.
