What Property Taxes are there in Spain?
In general the principal taxes or charges in Spain can be grouped as follows:
- IVA (VAT)
- ITP (Impuesto Transmision Patrimonial)
- IBI (Impuesto de Bienes Inmuebles)
- Capital Gains tax
- Plusvalía tax
- La Comunidad
- Other Charges
IVA (Impuesto de Valor Añadido – VAT)
The purchase of a new property in Spain currently attracts a VAT or sales tax rate of 10%. IVA is paid instead of ITP (see below).
The buyer of the property pays the tax directly to the promoter of the development or urbanization together with the monies to pay for the purchase of the property and the promoter is responsible for passing it on to the government in the usual way.
ITP (Impuesto Transmisiones Patrimoniales)
The purchase of a second-hand property in Spain attracts ITP sales tax which varies across Spain but is typically between 6% and 10%. The reason the tax rate varies is because it is set by the regional rather than central government.
At the moment it seems that regions which are run by the current socialist government party charge 8% whereas areas run by the opposition PP party charge 7%. The tax should be paid within one month from having purchased the property at the local tax office and it is the responsibility of the purchaser.
AJD (Impuesto de Actos Jurídicos Documentados)
The registering of new property deeds upon purchasing a property in Spain as well as the creation of a mortgage in Spain both attract the AJD tax. These taxes are regulated by the local government and so the rate of tax can vary across Spain.
In particular, certain regional governments allow for reductions where the purchaser is under a certain age or the property is social housing. Typically the rate will vary between 0.5% – 1.5% of the value of the property on the deeds or the amount of the mortgage accordingly.
Recent Advocate Abroad property lawyer reviews as added by clients directly to the Wufoo client survey platform:
- Mr David P Robson, ValanciaThursday, July 12, 2018My lawyer Francisca offered value for money and was very helpful. Will use her again.
- Richard Day, London and BarcelonaThursday, July 05, 2018My initial call to your service desk was responded to by Oscar very quickly.
I appreciated his time as I outlined my issue, a problem with the building community and administrators. At the end of ...the call he provided clear guidance on next steps.
Furthermore he quickly turned around the issue with an excellent drafted response for which I could not of hoped to be better worded. It was comprehensive and aligned perfectly with what I felt was needed.
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- Søren Aabel Hammer, MalagaThursday, July 05, 2018Beatriz was professional and quick to respond. Would definitely recommend to friends.
- Niall Purdie, BarcelonaMonday, June 25, 2018Anna helped me purchasing my house, she was knowledgeable and professional throughout. I would recommend using her legal services.
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He responded immediately to our enquiry and it was clear from the outset that he fully understood our position. It was vital tha...t Jaime acted quickly in this matter and he did so in a highly professional and competent manner, providing us with clear and concise updates throughout.
We found Jaime to be very polite and approachable and we believe his fees to be very reasonable. We would genuinely not hesitate to recommend his services.
Before contacting Jaime, our previous experiences of Spanish Lawyers had been appalling - in fact we needed Jaime's help to resolve issues which previous Lawyers had created. Our only regret is not finding Jaime sooner!
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- Tracey and Mike Iliffe Bradley, Colchester, United KingdomTuesday, May 29, 2018From our very first contact through to the end of our purchase, Rosa surpassed all expectations.
She was helpful, efficient, always quick to return our communications and a pleasure to deal with. ...We have already recommended her services to a friend.
- Rl, AlicanteThursday, May 24, 2018Felt very comfortable at all times. Nothing was too much. Understood everything mentioned in our meeting. Very reasonable rate, money wise.
- Cian O'Grady, IrelandTuesday, May 15, 2018We bought a property in spain and Lidia assisted us through the buying process.
She was very professional and reassured us throughout the process.Her english was very good and we felt that we got ...good value for our money.
- PJU, Torun, PolandWednesday, May 09, 2018Béatriz responded quickly to any queries I raised, with easily comprehensible answers.
Her fee was very reasonable and she proved to be a very personable and approachable person when we finally m...et at the Notary.
- Geraldine King, IrelandMonday, May 07, 2018I was extremely happy with Pedro,and Ana. They were honest,and answered my queries promptly.
Pedro had to evict my squatter tenants, and then organised an estate agent to sell my apt. This agent un...dertook renovating the apt, and got me a good price.
Pedro and his brilliant co-worker Ana finalised the sale and I received the money into my account, without me ever setting a foot in Spain.(Power of attorney).
I will be recommending Pedro to friends, who are going to sell their apartment in Torrevieja. I highly recommend him.
- George Salib, LondonMonday, April 23, 2018Jose Antonio was very professional and has assisted me in every step of the purchase of my flat in Alicante.
He also assisted me by advising of the most suitable area according to my needs. His com...mitment and dedication is excellent.
Jose Antonio was very easy to approach and happy to help in any way he can.
I will definitely recommend him to my family and friends.
- Duncan Martin, Wolverhampton, EnglandFriday, April 20, 2018Lidia, was extremely helpful and patient throughout the process.
She was very attentive and responsive and explained everything in detail.
Lidia represents excellent value for money and the so...lutions she recommended were very beneficial, especially as you hear and read about a lot of horror stories on the web.
Lidia was the best legal representative i have employed and i will always use her where Spanish legal affairs are concerned.
- Pernilla, LondonFriday, April 13, 2018We had excellent service from Esther at Advocate Abroad when buying a property in Las Palmas, Gran Canaria.
Esther speaks both Spanish and English, and is very friendly, professional and genuine. ...She took care of the whole purchasing process and explained all the steps for us, including giving advice on Spanish bank account, NIE numbers etc.
We are very pleased with all the help we have received and can highly recommend Esther. Thank you so much!
- L Marshall, LondonWednesday, March 28, 2018Rosa was excellent. Very efficient and professional.
Responsive and always available. Extremely helpful - we did not understand the process and she guided us through.
We would not hesitate to ...recommend her.
- Robert Scott, UKWednesday, March 07, 2018First class service. Rosa's professionalism, advice and patience were all exemplary! Keep up the good work. Will certainly recommend the service to friends!
- M Pearce, MarbellaMonday, March 05, 2018Miguel was extremely helpful, he couldn't have done more:
Always kept us updated on the progress of our purchase
Always responded to emails in a professional and timely manner
Always explained to... our understanding all aspects of the legalities about the purchase
Very approachable,courteous and professional
So much better to deal with than UK property lawyers!
- Andrew Bullen, UKFriday, February 16, 2018Rosa was very professional at all times when dealing with me. Her English was second to none and she always kept me informed of progress via email promptly.
I wouldn't hesitate to use Rosa in the ...future for any legal issues I have.
- Tamara Reeves, AustraliaThursday, February 15, 2018Anna was very knowledgeable and had prior experience dealing with English clients. She spent a lot of time explaining information and I was never rushed.
I have continued to use Anna since my firs...t meeting as I trust her judgement and know that she will look after my best interests.
- Lisa Jones, UKThursday, January 25, 2018Kristina was extremely helpful throughout the process of buying my property in Spain. She was very easy to reach at all times and very professional. I would highly recommend Kristina to anyone buying ...a property in the area.
- Jackie Acres, UKThursday, January 25, 2018Miguel is fantastic, his English is superb. He responds clearly and concisely and always quickly too.
He is helpful and approachable and has always answered all my questions very thoroughly. He’...s very polite and an absolute pleasure to deal with.
I hope he never retires!
- Yuka Mizota Lockey, Kent, UkMonday, January 22, 2018Olga responded promptly and efficiently. She was accommodating in terms of arranging meetings. She was really knowledgeable, diplomatic when dealing with our estate agents and was dedicated to our int...erests.
All my family found Olga very approachable, professional and we were grateful to have someone who could explain and guide us through a process that is foreign to us.
- Norman McElroy, Northern IrelandThursday, January 18, 2018Erardo was very professional, always available and most courteous in all the dealings I had with him. I would be happy to recommend Erardo to anyone.
- Gearóid Foyle, LondonFriday, January 12, 2018Emma was bilingual, helpful and always happy to assist. In particular, I appreciated her approachability and understanding. I would definitely use her services again.
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She is available to meet with us on short notice, is attentive to our needs, answers each of our questions fully and provides appr...opriate legal solutions.
Inma is bilingual which has simplified communication and avoids misunderstandings. Her fees are definitely value for the money paid, and we will continue to seek her professional services.
- DP, United StatesWednesday, January 03, 2018He has been very attentive, efficient, and always anticipates our needs in a timely manner. We enjoy working with him and look forward to other future business arrangements when needed.
- Delphine Harrison, EnglandThursday, December 21, 2017Jose was excellent from my initial contact to the exchange of the contracts, always responding quickly to my emails even out of work hours, very professional and understanding.
Jose made the whole... experience stress free and quite enjoyable, I would highly recommend him for anybody needing legal advise or business abroad.
- Tim Burley, MallorcaFriday, December 15, 2017A very strange phenomenon with lawyers in Spain - she was working for me rather than just trying to line her own pockets!
- Theo Kleynhans, Castellón de la PlanaTuesday, December 05, 2017I always felt safe with Lidia. She knows what she is doing and was extremely professional and helpful.
I think she was priced perfectly and I believe that she always understood me. I will recommen...d her with ease. She will remain my spanish Lawyer.
- YB & CB, ScotlandThursday, November 30, 2017Our lawyer Rossana has really looked after our interests in the most comprehensive way possible.
As novice property purchasers in a foreign land, she has done everything (including things we could... not imagine as necessary due to our ignorance of local laws, customs & practices) to keep us free from unforseen trouble!
We have been impressed to such a degree and now have so much confidence in Rossana that we have arranged for her to have ongoing Powers of Attorney, so that she may represent our interests in our absence. She is a most impressive lady!
I have not the slightest hesitation in recommending her, based on our direct experiences.
- Nigel Griffiths, UKWednesday, November 29, 2017My situation was complicated because the correct documentation was not done at the time of sale....
Rosa contacted the purchaser and arranged to receive all the information required to submit to th...e Spanish authorities.
Without Rosa, whose understanding of English (which was perfect),I would have had serious problems.We were kept informed at all stages of the process, by phone and e-mail.
I cannot recommend Rosa to highly,...she was fantastic.
Thank you Rosa.
ITP & AJD Tax Rates by Region
IBI (impuestos de Bienes Inmobiliarias)
This is a charge that is similar to Council Tax or rates in the UK. It is normally payable once a year (occasionally it is billed quarterly) at the ‘ayuntamiento’ or town hall and the specific date that the charge falls due depends upon the individual town hall though is often towards the end of the calendar year.
Care should be taken when buying a property given that the purchaser should pay for only those months of the year that they own the property. If the previous owner has paid for the full year then they may claim return of that portion which they will not use.
The amount payable is expressed as a percentage of the ‘catastral’ value of the property. The catastral value is the value of the property expressed in Euros as appears in the catastro registry.
This registry is like a census of all properties in an area and the value the registry attributes to a property is taken as a reference when determining certain local administrative issues – such as the IBI tax payable.
Once the catastral value is found, the tax payable is determined by multiplying the catastral value by a coefficient or percentage. For urban property this oscillates between 0.4% and 1.1% though may be more depending on whether the property is located in the municipal capital or if more services than normal are provided.
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