TAXES ARISING IN THE ACQUISITION OF A PROPERTY IN ANDALUCIA
Our conveyancing lawyers and accountants in Spain, from Welex, law firm in Marbella, specify in detail the following taxes must be taken into account for both, buyer and seller, when buying or selling a property in Andalucía, Spain.
TAXES FOR PURCHASING A PROPERTY IN ANDALUCIA
Transfer TAX IN spain
Impuesto sobre transmisiones patrimoniales ITP in Spain
The applicable rate is of 7% over the purchase price of the property, or reference value when it is higher that the agreed purchase price.
The reference value is determined by the Cadastre Office taking into account the prices of all properties in the transactions made before a notary public, based on the data of each property, as recorded in the Real Estate Cadastre.
The following reduced rates area also applicable under the following circumstances:
– Transfer of a property in Andalucía, Spain, intended for the habitual residence, if the value of the property does not exceed 150,000 euros: 6%.
– Transfer of a property in Andalucía whose value does not exceed 150,000 euros when it is intended for the acquirer’s main residence and the acquirer is under 35 years of age, a victim of domestic violence, a victim of terrorism or is acquired in a municipality with a depopulation problem: 3.5%.
– Transfer of a property in Spain destined for the habitual residence, the value of which does not exceed 250,000 euros, when the purchaser is legally considered to be a person with a disability of 33% or more, or a member of a large family: 3.5%.
– Acquisition of a property in Spain for resale by a natural or legal person carrying on a business activity to which the rules for adaptation of the General Plan for the Real Estate Sector are applicable: 2%.
VAT AND STAMP DUTY in spain (first transfer of a property from the promoter)
VAT & Stamp duty.
– VAT for properties…… 10%.
– VAT for plots …….….. 21%.
– Stamp Duty ………….. 1,2%.
TAXES FOR SELLING A PROPERTY IN ANDALUCIA
Plusvalia tax in Spain
The Spanish Plusvalia tax is a local tax to be paid to the corresponding Town Hall. It is calculated on the rates value of the land where the property is built and the time that has lapsed from the last transaction, when it was acquired.
The taxpayer of the Spanish Plusvalia tax, is the person or entity who sells the property. In addition, one should take into account that the person or entity who acquires the property becomes the subsequent tax payer in the event the seller is not resident in Spain.
Capital gains tax in Spain
This tax is to be settled for the gain obtained by the vendor in the sale of the property in Spain.
It based on the difference between the present sale price (less costs) and the purchase price paid when the property was acquired (plus costs), at a rate of 19%.
The person who buys the property, in Spain whether resident or not in Spain, is obliged to retain and deposit at the Tax Office 3% of the sale price, being a payment on account of the corresponding capital gains tax of the vendor derived from the sale.
In the event that the 3% retention is not deposited with the Tax Authorities, the property will be subject to the payment of the 3% retention or to the capital gains Tax.
When there is no gain for the vendor, he will be entitled to claim for the refund of the retention. To be able to recover the same, he must have the Non-Resident Income tax up to date in its payments for the last five years.
Other costs for the property vendor in Andalucia
– Certificate from the Community of Owners. This certificate is attached to the Purchase Sale Title Deed, as guarantee for the purchaser that there is no debt in favour of the Community.
– Energy certificate, being an official document drawn up by a competent technician which includes objective information on the energy characteristics of a building.
Our law firm in Marbella will be pleased to advise you on how to proceed according to your case, and accompany you throughout the whole process. Contact our team of lawyers specialised in buying and selling property in Spain.
Welex, your conveyancing lawyers in Marbella, heart of the Costa del Sol, Spain.