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Buyer and seller property tax in Spain

Spanish property sales and purchase taxes

These are both the sales and purchase taxes that must be paid when you either buy or sell a property in Spain.

 

Buyer property taxes

First transmission

• Value Added Tax 10 % for housing and 21% for local premises

• Stamp Duty : 1 % of the total value of the transmission to 2 % in case of waiver of exemption from VAT.

Second or subsequent transmissions

• Transfer Tax : 8% up to 400,000 Euros, 9% from  400,001 to 700,000 Euros and 10 % from 700,001 Euros upwards

Tax obligations for non residents

If you are non resident and you want to acquire a property, you must apply for a NIE prior to the acquisition of a property, you must fill and present Model 030 and shall annually declare the property as a non resident.

 

Seller property taxes

Individual property sellers

Individuals Income Tax: transfer value less expenses and taxes less value restated more investment, improvements, expenses and taxes.

From the remaining profit: 21% for the first 6.000 Euros, 25 % for the following 18,000 Euros and 27% for the rest.

Company property sellers

Income tax: declared profit from the difference between the acquisition value and the transfer value.

Tax scheme based on profit:

  • Up to 5 million euros : 25 %
  • Up to 10 million euros : 25 % -28 %
  • More than 10 million euros : 28 %.

Non residents sellers

The buyer is required to withhold 3% of the transfer value and enter it in finance, unless the non-resident in Spain and tribute is certified.

Also, the seller must report the capital gain at a fixed rate of 19% and in case of less than 3 % retained by the purchaser may request a refund of the difference.

In any case (individuals and companies)

Tax on the Value of Urban Land: tax is levied on the increase in land value since the last transmission. May agree to the payment by the purchaser (however, this does not bind the Directors and in case of default, the seller responds).

Is calculated based on the assessed value of the land (regardless of the value of construction) and the years since the previous transmission:

  • 5 years : 2.5% x 30 %
  • Between 5 and 10 years : 2.3 % x 30 %
  • Between 10 and 15 years: 2.4% x 30 %
  • Up to 20 years : 2.5% x 29,045 %

 

Spanish non residents real estate taxes obligations

Spanish non residents real estate tax obligations

Tax advice in connection with the services after the acquisition of real estate property in Spain by non residents:

We assume the following:

(i) Currently you are resident in the European Union (aside form Spain), Iceland or Norwegian.

(ii) You acquired a real estate property in Marbella (Spain).

In this case, please be informed about the tax obligations of non-residents once you acquire the properties in Spain:

1. Non-Resident Income Tax (Impuesto sobre la Renta de No Residentes, or IRNR)

Owners of a real estate asset in Spain, when such property is not rented to third parties, will be taxed on the amount obtained by applying 2% to the cadastral value of this property and applying tax rate of 19,50% (2015).

If you have not been the owner of the property during the whole year, or if it has been rented for any period, only the proportional part of this amount is to be declared.

This yield is calculated once per year, on the 31st December and declared on Form 210. The declaration and payment can be made at any time during the following tax period.

2. Wealth Tax (Impuesto sobre el Patrimonio)

It is compulsory to submit in the case of individuals with a net tax liability or, otherwise, in case the value of assets or rights  exceeds €2,000,000. Nevertheless, a minimum exemption is set at the amount of €700,000.

3. Local Real Estate Tax (IBI) and Garbage Tax (Basuras).

Property owners will be taxed at a rate determined by the municipality where the real estate assets are located. These taxes can be paid by direct debit to your bank account.

Límite de pagos en efectivo

Limitación de pagos en efectivo

Desde 2012 se limitan los pagos en efectivo, estos son lo detalles:

•  Regulación:    Ley    7/2012,    de    30    de    octubre

•  Entrada    en    vigor:    19    de    noviembre    de    2012

•  Ámbito    de    aplicación:

-­‐    Operaciones    en    las    que    una    de    las    partes    sea    empresario    o    profesional

-­‐        Importe      =      0      >      2.500,00      euros      (15.000,00      euros      si      es      persona      física      con

domicilio  fiscal    fuera    de    España)

•  Concepto    de   efectivo:

-­‐    Papel    moneda    y    moneda    metálica

-­‐    Cheques    bancarios    al    portador

-­‐       Cualquier     otro     medio     Lsico,     incluidos     los     electrónicos,     concebido     para     ser

utilizado  como    medio    de    pago    al    portador

•  Prescripción:    5    años

•           Determinación       de       las       cuantías:         Se       deberán       sumar       los       importes       de       todas       las    operaciones       o     pagos     en     que     se     haya     podido     fraccionar     la     entrega     de     bienes     o     la    prestación    de    servicios    (es    decir,    el    límite    aplica    por    la    cuantía    total    de    la    operación)

•          Régimen      sancionador:      25%      de      la      cuantía      pagada      en      efectivo      (Responsabilidad

solidaria)

•  Exoneración    de    responsabilidad:    Denuncia    en    el    plazo    de    3    meses