Property Sales Tax
Rates in Madrid
(Source AEAT)
This presentation has been updated and is valid for 2015.*
*myAdvocate Europe Ltd does not accept responsibility for losse...
Property Sales Tax Payable in Spain
All new properties in Spain are subject to IVA (equivalent to
VAT in the UK & Ireland)...
Property Sales Tax on New Build Properties
The purchase of new build properties in Spain attracts the
medium rate of IVA w...
Property Sales Tax on Second-hand Properties
In the Madrid region, Article 27 of ‘Legislative Decree’ 01/2010
sets out the...
A tax known as ‘Actos Jurídicos Documentados’
(Documented Legal Operations Tax) is also payable on the
value of the proper...
An AJD tax is also payable on any mortgage that is created
in order to finance the purchase of either a new build or
secon...
Where the property being purchased is a property subsidised
by the government then it is subject to a tax rate of 4% if th...
Article 29 of D.L. 01/2010 provides that a property acquired
by a legally defined 'large' family for the purpose of being
...
- any property formerly used as a family home must be sold
within two years of buying the new property
Initiatives for Lar...
For more information or assistance with legal or tax
matters from our network of local English-speaking
property lawyers i...
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Taxes on property transfers in madrid

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Taxes on property transfers in madrid

  1. 1. Property Sales Tax Rates in Madrid (Source AEAT)
  2. 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 2
  3. 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. 3
  4. 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. 4
  5. 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. 5
  6. 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 6
  7. 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 7
  8. 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 8
  9. 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 9
  10. 10. - any property formerly used as a family home must be sold within two years of buying the new property Initiatives for Large Families 10
  11. 11. For more information or assistance with legal or tax matters from our network of local English-speaking property lawyers in Madrid, go to: 11 Property Lawyers in Madrid

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