What are the taxes for selling property in Spain ?
Taxes when you buy a house
If you buy a new house, you must pay VAT and the tax of documented legal acts. If you buy a second-hand house, you must pay the property transfer tax, which varies according to the Autonomous Community where the property is located. When the sale price exceeds € 700,000, you must add the property tax.
Taxes when you sell a house
Whenever the sale of the house has meant a gain, you must pay the capital gains tax (plusvalia) to the State through the IRPF. Although the municipalities claimed this tax even if the sale had been made at a loss, the Constitutional Court annulled this possibility.
Those that we have indicated are are only the most important Spanish real estate taxes, but not the only ones (notary and property registration expenses, those related to the mortgage…).
All this configures a very complex property law, especially for the tax implications for foreign citizens. A spanish tax lawyer is the right solution to avoid problems with the treasury.
The smartest way to pay taxes in Spain is to have the professional advice of a Spanish law firm, such as GM Lawyers: an experienced law firm with lawyers in Marbella specialized in real estate law, due diligence, golden visa, tax planning and real estate investing.
What are the property taxes in Spain that every owner must pay?
IBI tax
The IBI tax in Spain is an annual impost that property owners in Spain must pay to the City Council for the mere fact of being proprietors, regardless of whether they live there or not.
Garbage and water rate
These are municipal taxes that, unlike the IBI, are not charged in all the territories of Spain.
Their cost and periodicity being different according to the Town Hall where the house is located.
Personal income tax (IRPF)
You must pay the real estate performance tax if you own an empty property in Spain, that is, one that is not used as your own home nor is it rented. In case you have a rented property you will have to pay in the IRPF for the income obtained from the rent, after deducting the expenses that the rent has incurred.
The non-resident entities that own property will pay a tax forilaceps it.
