- Guides
- Buyers Guide – Step by Step
- Purchase Taxes in Spain
Resale properties –Transfer Tax
When the seller is a private individual *, you have to pay Transfer Tax (Impuesto de Transmisiones Patrimoniales), which is levied by the Spanish Tax Agency.
| Transfer tax | 7% | ||
| Notary Fees (approx) | 0,30% | ||
| Land Registry Fees (approx) | 0,20% | ||
| Legal Fees (approx) | 1% | ||
| Mortgage Fees (approx) | 1% | ||
| TOTAL | 9,50% (8,50% without a mortgage) |
When the seller is a company or professional who sells property as a business, the buyer has to pay VAT at a flat rate of 21%. Exception: If the buyer is acting as a Spanish developer, transfer tax is levied at a flat rate of 2% provided the property is sold within the following five years.
New properties (normally from a developer)
Buyers have to pay VAT at a flat rate of 10% on new-build properties. Whenever VAT is due, buyers also have to pay Stamp Duty (Impuesto sobre Actos Jurídicos Documentados) at 1.2%.
| VAT | 10% |
| Stamp Duty (AJD) | 1,2% |
| Notary Fees (approx) | 0,3% |
| Land Registry Fees (approx) | 0,2% |
| Legal Fees (approx) | 1% |
| Mortgage Fees (approx) | 1% |
| TOTAL | 13.7% (12.7% without a mortgage) |
Buying a Plot of Land
When buying a plot of land how much tax you pay depends on the tax status of the seller. When the seller is a Spanish business or professional who bought it acting within the scope of its business, VAT is levied at a flat rate of 21% on top of the sale price in addition to stamp duty (actos jurídicos documentados, AJD) – charged at an additional 1.2%.
When the seller is a private individual not acting in business, no matter if the seller is tax resident in Spain or not, ITPO (Transfer Tax) is levied.
Buying Land from an Individual
Private Seller – When the seller is a private individual*, you have to pay Transfer Tax (Impuesto de Transmisiones Patrimoniales), which is levied by the Spanish Tax Agency.
| Transfer tax | 7% | ||
| Notary Fees (approx) | 0,30% | ||
| Land Registry Fees (approx) | 0,20% | ||
| Legal Fees (approx) | 1% | ||
| Mortgage Fees (approx) | 1% | ||
| TOTAL | 9,50% (8,5% without a mortgage) |
Buying Land from a Spanish business or professional
When the seller is a Spanish business or professional who bought the land acting within the scope of its business activities 21% VAT is levied on the purchase of the land.
| VAT | 21% |
| Stamp Duty (AJD) | 1,2% |
| Notary Fees (approx) | 0,3% |
| Land Registry Fees (approx) | 0,2% |
| Legal Fees (approx) | 1% |
| Mortgage Fees (approx) | 1% |
| TOTAL | 24.7% (23.7% without a mortgage)% |
Parking Spaces
Parking spaces(when sold separately from a dwelling or, if sold together, when more than two spaces are sold at the same time) are taxed in line with a separate scale:
| Parking Space Price | 0 – 30.000€ | 30.000,01€ – 50.000€ | 50.000,01€ + |
|---|---|---|---|
| Tax | 8% | 9% | 10% |
When do I need to pay these taxes?
All taxes arising from the sale of a property in Spain must be paid within 30 banking days of the date of signature of the public title deed. If not complied with, buyers will be charged an additional 20% in fines and interest on top of the amount owed.
