Income Tax Deductions when Buying Property in Cantabria For anybody living in the Cantabria region of Spain and therefore who is subject to income tax the fact that a number of tax-breaks exist in relation to property dealings will no doubt be of interest.
As is the case in general with regard to taxation matters, there is quite a wide variation in the tax breaks available, with each autonomous community applying those deductions considered to be reasonable and beneficial according to the regional government. Spanish Property Law
The regional level exemptions available in Cantabria were encacted by the parliament in Santander with the most important provisions contained in Ley 6/2005, Ley 62/2008 and Ley 11/2010 The most important deductions available are as follows:
Purchase/Renovation of Property in areas of Depopulation
Purchasing or renovating a property in areas classified by the regional government as areas of depopulation
The deduction is worth 10% of the invested amount up to €300 a year or €600 if it is the principal personal residence
The deduction is restricted to one
For renting of the principal personal residence
A taxpayer can deduct 10% of rental monies paid in respect of their principal personal residence up to a value of €300 annually on condition that:
For renting of the principal personal residence cntd... i) They are aged between 35 and 65 years of age (unless they are disabled > 65%) ii) The taxpayer's income may not exceed €22,000 (before subtraction of mimimum personal exemption or that for dependants) or €31,000 if joint declaration
For renting of the principal personal residence cntd... iii) The amount of rent paid must be greater than 10% of the taxpayers income In the case of a joint declaration, the maximum deduction is €600
Where the tax payer purchases their princpipal personal residence then in line with most other regions, this is no longer tax deductible for those who earn more than €24,107 and rises to 15% with a limit at €9,040 for those earning €17,707 or less.
Simply put, the property transaction process in Spain is unique to this country with legal assumptions made here that just don't exist elsewhere Pitfalls Dealing with Property in Spain
If you would be interested in a free and comprehensive guide that will help you to avoid the typical pitfalls the foreign buyers of property fall into as well as dealing with issues such as... Guide to Dealing with Property in Spain
To find out how to deal with such issues as... Which legal checks on a property are vital to avoid any problems The step-by-step process of buying a property in Spain
As well as... Typical ploys to watch out for to avoid being defrauded. Property taxes you pay and those you don't!
And much, much more! Download the myAdvocate Spain guide to Dealing with Property in Spain by clicking on: Secrets to Dealing with Property in Spain
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