EXPENSES AND TAXES TO PAY WHEN BUYING A HOUSE IN SPAIN 22/23

This is probably the most important question when deciding to buy a property in Spain. 

Let’s start to talk about the THE TAX VALUE

 

On the CADASTRAL VALUE, the administration calculates the MINIMUM VALUE by which the sale must be declared for tax purposes. Any transaction paid below this Minimum Value will pay taxes on this Minimum Value.

 

PROPERTY PURCHASE TAXES

 

The taxes derived from the purchase of homes in Spain are divided into 2:

NEW CONSTRUCTION VAT 10%
AJD 0.4-2% (Depends on the region)
RESALE ITP 4-10% (Depends on the region)

 

TAXES DERIVED FROM THE PURCHASE OF NEW CONSTRUCTION

 

VAT – VALUE ADDED TAX

State Tax

The builder is paid

Quota: 

  • 10% for residential homes and garages attached to the house
  • 21% for the rest
  • 0% if the acquirer is a Spanish company to be used for business activity (investment, office, rental, etc.).

AJD-DOCUMENTED LEGAL ACTS

  • Regional tax
  • It is paid to the Autonomous Communities

Quota:

  1. Purchase natural person:
  • MADRID: 0.4% -0.75%
  • BALEARIC ISLANDS: 1,5 %
  • MURCIA: 1,5 %
  • CATALONIA: 1.5%
  • ANDALUSIA: 1,2 %
  • CANARY ISLANDS: 1 %
  • VALENCIA: 1.5% (0.15% if used as a habitual residence)
  1. Purchase of a Spanish company for business activity: 2 %

 

TAXES ON RESALE BY COMMUNITIES – ITP 

  • BALEARIC ISLANDS: 8-11 %
  • MADRID: 6 %
  • MURCIA: 8 %
  • CATALONIA: 10 % or 11 % for more than EUR 1 M
  • ANDALUSIA: 7%, or 6% if habitual residence
  • CANARY ISLANDS: 1 %
  • VALENCIA: 1,5 %

OTHER EXPENSES ARISING FROM THE SALE: 

– Legal expenses: Notary, land registry, lawyer, occupancy license, changes of supplies:   2-4%

– Professional expenses: Real estate agent, architects, etc.

EXAMPLE OF EXPENSES AND TAXES VALENCIA

NEW CONSTRUCTION 300.000 RESALE 300.000
VAT 10 % 30.000 ITP 10 % 30.000
AJD 1.5% 4.500 LEGAL EXPENSES 7.500
LEGAL EXPENSES 2,5 % 6.000 AGENCY COMMISSION TO CONFIRM
AGENCY COMMISSION TO CONFIRM
TOTAL EXPENSES 40.500 TOTAL EXPENSES 37.500
PRICE+EXPENSES 340.500 PRICE+EXPENSES 337.500

 

Click here to calculate your taxes in Spain:

 

– Spanish Income Tax calculator for residents – Pensions, salary and rentals

– Spanish Income Tax calculator for non residents

– Spanish Income Tax calculator for property rentals

– Spanish Tax to pay on the sale of Spanish properties

Official site Spanish tax office “Agencia Tributaria”