2. This presentation has been updated and is valid for 2015.*
*myAdvocate Europe Ltd does not accept responsibility for losses of any type consequent upon reliance
on the information contained in this presentation.Please consult a lawyer before acting.
Property Sales Tax Payable in Spain
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3. Property Sales Tax Payable in Spain
All new properties in Spain are subject to IVA (equivalent to
VAT in the UK & Ireland) whereas secondhand properties are
subject to ITP (Impuesto de Transmisiones Patrimoniales).
IVA is set by the State government and ITP is set by the
regional government.
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4. Property Sales Tax on New Build Properties
The purchase of new build properties in Spain attracts the
medium rate of IVA which is currently 10% of the value of the
property.
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5. Property Sales Tax on Second-hand Properties
In the Madrid region, Article 27 of ‘Legislative Decree’ 01/2010
sets out the standard rate of tax payable on the transfer of
secondhand property (ITP Tax) as being 6% of the value of the
property.
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6. A tax known as ‘Actos Jurídicos Documentados’
(Documented Legal Operations Tax) is also payable on the
value of the property.
This is payable only on new build properties, and in Madrid
the current rate is 0.75% of the value of the property
AJD Tax on Property
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7. An AJD tax is also payable on any mortgage that is created
in order to finance the purchase of either a new build or
secondhand property.
In Madrid the current rate is 0.75% of the total value of the
mortgage, including interest etc
AJD Tax on Mortgage Creation
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8. Where the property being purchased is a property subsidised
by the government then it is subject to a tax rate of 4% if the
property is going to constitute the main home of the
purchaser
AJD tax is similarly reduced for purchases of this type to
0.2%.
Protected or Social Housing
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9. Article 29 of D.L. 01/2010 provides that a property acquired
by a legally defined 'large' family for the purpose of being
their main home is subject to a special tax rate of 4% where:
- the family are registered as a ‘large family’
Initiatives for Large Families
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10. - any property formerly used as a family home must be sold
within two years of buying the new property
Initiatives for Large Families
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11. For more information or assistance with legal or tax
matters from our network of local English-speaking
property lawyers in Madrid, go to:
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Property Lawyers in Madrid
