When you buy property in Spain, you are subject to various taxes. Whether you are a resident or a foreigner determines the nature of these charges. You are also liable for the costs and fees of the professionals involved in the purchase process. With N1 Immo, find out more about the costs, taxes and fees involved in buying property in Spain.
Fees and taxes for residents of Spain (Catalonia)
Many experts and analysts believe thatinvesting in real estate in Spain is good business. Whether you are a resident or not, as a buyer you must pay various taxes to the Spanish state as part of the purchase of your property. In general, these represent 11-12% of the property's value. The entire process of buying a property is carried out before a Spanish notary, who represents the state.
These include notary, lawyer and estate agency fees. When buying property in Spain, notary fees are regulated by law. They are paid by the buyer, as in France.
In Spain, legal fees represent around 1% of the property purchase price. They vary according to the services required and the reputation of the law firm. In all Spanish real estate agencies, the commission is fixed in advance and calculated on the basis of the sale price. These fees may vary depending on the location, region and type of property you wish to buy. There are also fees for registration in the property register.
You should allow between 10 and 15% of the purchase price of the property for taxes and legal fees. In the Spanish tax system, 10% VAT and 1.5% notary's tax apply to new properties. For the purchase of an old house, the tax applied to the transfer of ownership varies from 10 to 11%, depending on the sale price. These various taxes are payable by the buyer.
There are special cases that vary depending on the region or city in Spain. That's why it's important for you to consult local legal experts who are familiar with the legislation and exceptions in each area. The experts at N1 Immo can also help you in this process.
Property purchases by foreigners in Spain: taxes due
For foreigners, whether resident or non-resident, thepurchase of property in Spain is subject to certain taxes. VAT is one of these. It is applied to new constructions and represents 10% of the purchase value of the property, with the exception of the Canary Islands, where the rate is 7%.
The AJD (Actes Juridiques Documentés) tax is also payable on the purchase of a property. This is a regional tax that fluctuates between 0.5% and 1.5% of the value of the purchase price. The percentage varies from region to region.
In addition to these taxes, the IBI real estate property tax is charged by local authorities on the basis of the cadastral value of the property. It ranges from 0.4% to 1.3%.
Income tax for non-residents of Spain (IRNR) is also payable by foreigners. The rate is 19%, applied to 2% of the property's cadastral value. Finally, a tax residence permit is issued if you wish to enjoy your property for more than 183 days a year. It is payable to the Spanish public administration.
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