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
• 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 %