Property Taxes in Spain
Understanding the tax implications of buying and owning property in Spain is crucial for making informed decisions. Here's a comprehensive overview of all the taxes involved.
Purchase Taxes
Transfer Tax (ITP)
When buying a resale property, you'll need to pay the Property Transfer Tax (ITP):
- 8% for properties up to €400,000
- 9% for properties between €400,000 and €700,000
- 10% for properties over €700,000
VAT (IVA) and Stamp Duty
For new properties, instead of ITP, you'll pay:
- 10% VAT (IVA)
- 1.5% Stamp Duty (AJD)
Important Note
Tax rates can vary between regions in Spain and may change over time. Always consult with a legal professional for the most current rates and regulations.
Annual Property Taxes
IBI (Council Tax)
The main annual property tax in Spain, based on the cadastral value of your property:
- Paid annually to the local town hall
- Rates vary by municipality
- Usually between 0.4% and 1.1% of cadastral value
Basura (Rubbish Collection)
Annual fee for waste collection services:
- Varies by location and property size
- Typically paid annually
Non-Resident Taxes
If you're a non-resident property owner, you'll need to:
- File an annual income tax return
- Pay tax on rental income (if applicable)
- Submit Form 210 for imputed income tax
Capital Gains Tax
When selling your property, you'll need to consider:
- 19-23% tax on the profit made (for non-residents)
- Possible exemptions for primary residences
- Deductions for improvements and buying costs
Need Tax Advice?
Our team can connect you with experienced tax advisors who specialize in Spanish property taxation.