Taxes on real estate in Spain. Archive article

Attention! The information in this article is out of date. Fresh data on property taxes in Spain in a new article at: //www.homesoverseas.ru/articles/6750 .

For all transactions (buying real estate, paying all necessary taxes, etc.), non-residents of Spain need a foreigner identification number (NIE). Many real estate agencies in Spain assist their clients in obtaining it from the local police. You can also apply for a NIE at any consular department of the Spanish Embassy in Russia. Taxes at the conclusion of the transaction The purchase of real estate in Spain is subject to the following taxes and fees. New real estate, garages and storage rooms (in the event that there are no more than two garages, and there is only one storeroom, and the bill of sale for them is drawn up together with the bill of sale for the living space), is subject to IVA tax (Spanish analogue of VAT) at the rate of 8% When buying only garages or storage rooms in a new building, IVA (VAT) is 18%. When buying a land plot, 8% IVA (VAT) is charged if the buyer is an individual and legal entities pay at a rate of 18%. Stamp duty (IAJD) is also payable when buying a new home. Depending on the region, its rate varies from 0.5% (Andalusia, Canary Islands, etc.) to 1% (Madrid, Catalonia, Valencian Community, etc.) When buying a secondary property, transfer tax (ITP) is charged. Its size changes periodically and depends on the region of Spain. For example, in Catalonia it is 8% regardless of the value of the property, and in Andalusia it is 7% if the purchase price does not exceed 400,000 euros and 8% if the purchase amount is more than 400,000 euros. In the process of completing the transaction, it is necessary to check whether the seller has paid the state tax on immovable property (IBI). In case of debt, the debt will go to the new owner. The Plusvala municipal tax (tax on the increase in the value of land plots), according to the law, must be paid by the seller, but often, by mutual agreement of the parties, it is borne by the buyer. The tax rate is determined by the municipality. The taxable base is the difference between the current transaction price and the value at which the property was last sold. On average, in various cities in Spain, the rate averages 25-30% of this amount. Additional expenses for the purchase First of all, additional expenses include the services of a notary. Their cost largely depends on the type of deed, the value of the transaction, the presence or absence of a mortgage. On average, it is 800-1000 euros. Further, the registration of the property in the Property Register. Its rate depends on the value of the registered object and, as a rule, does not exceed 1% of the amount specified in the submitted documentation. And here is an approximate calculation of the costs when buying real estate worth 100,000 euros in the primary market: VAT (IVA) 8% - 8,000 euros Stamp duty (IAJD) 0.5% - 500 euros Notary - 439 euros Property register - 207 euros Paperwork - 210 EUR VAT (notary, property register, paperwork) - EUR 34 Total - EUR 9,390 Expenses for the maintenance of real estate The municipality of the city issues the following invoices to the owner of the real estate at regular intervals: - for payment of real estate tax IBI. It is approximately 1% of the cadastral value of the property and is charged once a year. These funds are directed to the city treasury and are used to improve the city. The exact amount of tax depends on the cadastral value of the property and the region of Spain. - Garbage collection tax (about 50 euros per year, depending on the city). Foreigners who do not reside permanently in Spain are subject to a capital tax (Impuesto Extraordinario Sobre el Patrimonio) annually. The amount of this tax is regulated by the authorities of each of the Spanish autonomies, and can range from 0.2% of the cadastral value of real estate. In addition, the owner of the real estate pays to the supplying companies the subscription fee for electricity, telephone and Internet, as well as the costs of these items, according to individual bills (0.09 euros kWh - electricity, 0.5-0.8 euros per cubic meter of water ). Depending on the companies chosen and the level of consumption, these costs can average € 100-150 per family of three per month. Utility payments are also required. Their amount is determined by the partnership of owners and depends on the number of owners, the size and quality of communal property, the presence or absence of a swimming pool, tennis court, etc. Utility costs for the maintenance of real estate in order are mandatory even if the owner of the real estate does not live in it most of the time. Sale of real estate A non-resident who sells his home in Spain is subject to capital gains tax, the maximum rate of which is 19% of the difference between the sale and purchase price. If a foreign citizen permanently resides in Spain and the entire amount earned from the sale of real estate, he intends to invest in a new living space, capital gains tax is not levied. A foreign citizen who is legally in Spain for more than 183 days a year or has a work permit in Spain is considered a resident of a country. Natalia GERASIMOVA