Would you like to buy a property in Spain? then you have to read this article so you will find out more about taxes in Spain when you are buying a property and after the purchase when you are an owner of a house in Spain.
Taxes in Spain when you are buying or invest on a property and when you are a new owner of a house in Spain.
After you find your dream house in Spain, you need to know more information about the Taxes in Spain.
Read more about 3-Best-kepts secrets when you are searching a property in Spain
Normally, you surf in the net and watch a lot of properties for sale. In these advertisements you see the requested price and this requested price DOES NOT INCLUDE TAXES IN SPAIN. Therefore, don’t forget to add the taxes costs to your budget.
So here are the taxes in Spain that you have to pay at the moment you are purchasing a house in Spain:
If you buy a NEW HOUSE:
1-VAT (Value Added Tax) and at this moment in Spain the Property VAT is 10%.
Then the client has to pay the requested price plus this 10% and this interest rate is valid for the property, 1 storage room and for 2 parking spaces, in the case you want to buy the third parking space then the VAT is 21%.
2-AJD is between 0.5% and 1.5% depending on the city and there is the possibility to reduce it until 0.1% if you are buying your permanent residence.
If you buy a SECOND HAND HOUSE:
- The purchase of second-hand houses is subject to the Property Transfer Tax (PTT) inthe case the house is second hand and no new, the rate will be between 6% and 10% depending on the city where you are buying.
Apart from these amounts, the buyer has to pay the Notary and Register fees, in this case it more or less amounts to the 1% of the price of the purchase.
You may find more info about these taxes in the Official Government Website.
Then, to know the total of the investment you are doing you have to use the following formula:
Price of the sale + 12% = Total investment.
*In the case you need a loan in Spain, the costs are 2% more, because there is a commission to open the mortgage and Notary and Register fee again.
And now that you are an owner in Spain of your dream house, then you should know more about other taxes in Spain related to it:
1-IBI tax: it is a tax that you have to pay when you are the owner of a house in Spain, it is not expensive and you have to pay it every year. At the moment of the purchase this tax will be paid by the owner of the property on 1st of January unless otherwise is agreed.
2-210 Model Tax: it is the non-resident tax that the owner should pay to Hacienda (Tax Authorities) and this amount is calculated based on the value of the house. More info in the Official Government Website: 210 Model Tax,
1-Don’t forget that the requested price does not include the taxes in Spain costs when you buy a house.
2-The client should add more or less 12% more than the requested price.
3-There are different taxes depending on whether it is a new or second hand house.
4-210 Model Tax, it is a non-resident tax and it must be paid every year.