How much is stamp duty on a house in Spain?
The stamp duty rates in Spain vary depending on the type of transaction and the value of the assets involved. The stamp duty rate is usually between 0.5 % and 1.5 %, depending on where it is situated.
The stamp duty is calculated usually at 1% of the price of the purchase but this might differ according to the region. The tax has to be paid upon signing a public deed like notarial documents, registry office documents etc. This tax is officially set between 1-1.5% depending on the region you are in.
Buying property tax: How much is buying property tax in Spain? Purchasing a property in Spain involves the payment of different taxes, ranging between 8% and 11.5%, whether the property is newly built, generally sold by banks or construction companies, or the property has already been owned by another person, a resale.
For non-residents of the EU, the tax rate is 24%. Example: If the cadastral value of the property is 200.000 Euros and the taxable base is 2.200 Euro (1.1% as mentioned above). In this situation, if you are resident in the EU, tax = 19% X 2.200 Euro = 418 Euro.
As is the case in most countries, Spain levies capital gains tax (CGT) on the profit made from the sale of assets including real estate. Its rate ranges from 19% for Spanish and EEA residents to 24% for non-EEA residents. Find out about buying and selling property in Spain.
Letters (Non normilazados) up to 50g stamps cost 0,88 € for Spain, 1,95 € for EU and 2,25 or 2,10 € for Worldwide. "Certificado" (certified) Letters to 20g where the delivery is registered costs 4,68 euros for Spain, 6.45 euros for EU and 6,55 or 6.90 for the rest of the world.
Property investment in Spain: a very strong return of +11.2%
According to statistics released by the Central Bank of Spain in November 2022, the return expected on the residential Real Estate market in Spain is 11% and 8.4% if you take a mortgage – Green line on the chart. Not a bad property investment in Spain!
Land Registry fees in Spain tend to be between €400 and €600 – or 0.4% of the purchase price. Legal fees are usually a percentage of the purchase price – generally 1% plus VAT– but with a minimum fee. Typically this might be €1,000 to €2,000.
So, how does the 3% retention fee work? The buyer retains 3% of the purchase price of the property and then presents this sum to the tax office. The vendor of the property can then reclaim this figure. If the vendor can prove that all their taxes are paid up to date, they will be returned all or part of the 3% fee.
You can expect to pay an annual tax that is calculated on the basis of the rateable value (valor catastral) of the property. The tax payable will usually be very low, based on a taxable amount of 1.1 per cent of the rateable value, taxed at the rate of 19 per cent.
What are the fees for buying in Spain?
On all purchases, whether resale or new-build, the buyer's legal fees should come in between 0.5% and 1%. In addition, the buyer is responsible for the notary and registry fees and until you have chosen a property these can only be estimated but allow 0.5% for each.
The transferee must pay the tax at a rate up to 10 % of the purchasing price, depending on the region where the property is located. In case of purchasing a movable or personal property, rates also depend on the region where the purchase takes place.
Impuesto sobre Bienes Inmuebles, or IBI, is a tax that every property owner in Spain has to pay. Either your local town hall or SUMA offices will collect the payment, which they use to finance local services. The local authority collects this tax annually and failure to pay can lead to fines and interest.
