An individual owning property in Spain is likely to encounter some of all of the following Spanish property taxes: –
VAT (IVA – Impuesto sobre el Valor Añadido)
Purchases of new properties are subject to VAT at 10%.
Transfer tax (ITP – Impuesto sobre Transmisiones Patrimoniales)
Purchase of re-sale properties are subject to transfer tax at 8% up to EUR400,000 and at 9% between EUR400,000 and EUR700,000 and above EUR700,000 at 10% with the bands apply to each registered owner.
Purchase of re-sale garages are subject to transfer tax at 8% up to EUR30,000 and at 9% on any amount exceeding EUR30,000.
Stamp duty (AJD – Actos Jurídicos Documentados)
Purchases of new properties are subject to stamp duty at 1.5%.
Rates (IBI – Impuesto Bienes Inmuebles Urbana)
All properties in Spain must pay annual rates (IBI). Correctly it is paid by the person who occupies the property on the 1st January in any year. This tax is collected by the local Town Hall and is based on the rateable value (valor catastral) of the property.
Refuse tax (Basura)
Most properties are separately accessed to rubbish collection charges. Refuse taxes are normally levied by the local Town Hall.
Plusvalía (Impuesto Sobre El Incremento Del Valor De Los Terrenos De Naturaleza Urbana)
Plusvalía is a municipal tax and is levied by Spanish Town Halls on the increase in the value of urban land (excluding the value of any buildings) when there is any change of ownership (i.e. sale or inheritance). The tax rate varies depending upon the size of the local population and also the length of ownership. A declaration should be made within 30 days and the appropriate tax paid. Correctly, in the case of a property sale, it is the seller that pays this tax.
Imputed income tax (Impuesto sobre la Renta de no Residentes)
The property owners’ imputed income tax is based on a deemed rental income. The tax is calculated based on the rateable value (valor catastral) of the property. The rental income is deemed to be 2% (1.1% if the valor catastral has been revised in the previous 10 years) of the rateable value and one is then taxed on that amount at 19% which is the non-resident flat rate of income tax.
Wealth tax (Impuesto sobre el Patrimonio)
Spanish wealth tax, relieved in 2008, was re-instated as a temporary measure for 2011 and 2012 Wealth, and has been extended every year since.
There is a wealth exemption limit of EUR700,000 applying to both residents and non-residents and with an additional exemption of EUR300,000 available to residents for an habitual residence.
The tax rates vary from between 0.2% to 2.5% on total net wealth.
Capital gains tax (Ganancias patrimoniales derivadas de la venta de un inmueble)
Any gain made on the disposal of an asset (i.e. sale of property) is assessed to capital gains tax at a rate of 19%.