Property owners in Spain must pay annual property taxes. The rates, both when buying and owning, are much better than the European ones in average. It is an additional advantage for those who want to invest in local square meters. The amount of payment is set at the federal, regional, and municipal levels resulting in significantly different fiscal burdens in different provinces: from 6% to 11% for purchases and 0,7% to 1,6% for ownership. Tax rates also depend on whether the property is new or existing home, and whether an owner is an individual or a legal entity when selling home.

Spain Legal’s experts are ready to provide extended advice on all payments associated with purchase, sale, and rental of real estate property in Spain. You will also have a personal tax representative in the country who will competently calculate, optimize, and help you pay taxes on time, defend your interests in government agencies and utility service providers and, if necessary, provide legal defence in court.

owner taxes

  • VAT (IVA) 10% upon buying new housing, and 21% upon buying new commercial premises.
  • Property transfer tax (ITP) upon existing home buying from 6% to 10%.
  • Stamp Duty (AJD) upon payment of VAT varies from 0,5% to 2%.
  • Personal income tax for individuals and Income tax (IRPF) for legal entities. It is determined based on the difference between the purchase price and the selling price paid by the seller.
  • Tax on land value increment (plusvalía municipal). It is determined based on the difference between the original and the current price and is paid by the seller (no more than 30% of the cadastral value).
  • Capital Gains Tax (IP). It is determined based on income received (19% – 23%) and paid by the seller.
  • Luxury tax – levied on properties with a price of 700,000+ euros (1% – 2 %).
  • Tax on Legal Documented Acts (IAJD) – from 0,5% to 1,5%.
  • Property tax (IBI) – from 0,4% to 1,1% of the cadastral value.
  • Tax on income of non-residents (IRNR) – up to 0,5% of the cadastral value.
  • Tax on rental income – 19% for tax residents and 24% for tax non-residents.

Our tax advisor
services include

  • Preparation and filing of real estate and income tax returns.
  • Fiscal planning and optimization.
  • Registration with the tax authorities, obtaining an identification number (NIE) and electronic certificates for signing documents.
  • Support in the tax and other government agencies/representation of your interests by proxy.
  • Assistance in registering a business of any form.
  • Accounting, consulting and audit for residents and non-residents.