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.
Property Sales Tax Payable in Spain The Spanish government announced on 19/08/2011 that the IVA rate would be reduced to 4%, down from the standard 8%, in order to promote the sale of vacant new properties in Spain. This specially reduced rate is valid until 31/12/2011 when it will revert to 8%.
Property Sales Tax in Murcia The standard rate of tax payable in Murcia on the transfer of second-hand property and the creation of rights over the property (except for mortgages) is 7% of the value of the property – Article 5 Decreto Legislativo 1/2010.
Incentives for legally classified 'large families' A special lower rate of 4% applies to property transfers in which the purchasers are legally classified as pertaining to a 'large family' where the following criteria are met:
- The property shall form the main, habitual home of the family. - The fact that the property is to be used as the family home should be expressed in the deeds of purchase Incentives for legally classified 'large families'
- The total income of the persons who will live in the property (less individual and family deductions) shall not exceed €44,000 plus €6,000 additionally for each child over the statutory minimum number for classification as a 'large family' Incentives for legally classified 'large families'
Incentives for Home Purchase by Young People Property purchases by young people under the age of 35 shall attract a lower rate of 3% in the following circumstances:
- The property must form the habitual residence of the purchaser. The term 'habitual residence' is as per the legal definition in income tax legislation. - The value of the property must not exceed €150,000 Incentives for Home Purchase by Young People
- The total income of the purchaser (less personal and family deductions) must not exceed €26,620 Incentives for Home Purchase by Young People
Lower rate of 4% for Public Housing - A lower rate of 4% stamp duty is payable on the purchase of any property that is classified as 'social housing'.
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 more... Download the myAdvocate Spain guide to Dealing with Property in Spain by clicking on: Secrets to Dealing with Property in Spain Or for further information on the property purchase process specifically go to: Spanish Property Lawyers
Always make sure to get information on a Spanish lawyer’s professional background as well as the legal fees they will charge before you commit to using their services. If you need a lawyer in Spain Consider this free service from myAdvocate Spain™: Lawyer Verification System
More information and contact details: www.myadvocatespain.com [email_address] Tel. +34 931 845 073