miércoles, 08 de julio de 2020
05 WHAT TAXES DO I HAVE TO PAY?
How to buy a home in Spain step by step
Guide of the College of Registrars of Spain (Part VI)
From our Real Estate Agency in Teulada, Marti Projects S.L. We want to echo the transmission of this important and interesting information for the purchase of a home in Spain. We continue in this article with Part Six.
Before buying, you must quantify in advance the taxes to be paid.
The tax is always one, even if it is followed by another complementary one. This is how the Value Added Tax (I.V.A) is paid for the sale, when the sale is business, or the Property Transfer Tax is paid, when it is between individuals. The first case VAT is complemented by the Tax on Documented Legal Acts. In the second, no.
5.1 taxes that aggravate the purchase of the home
The taxes that directly affect the purchase of a home without taking into account other tax repercussions that the acquisition of a home may have for the acquirer (Income, wealth, etc. taxes)
5.1.1 In the case of new housing
The purchase is subject to Value Added Tax (VAT) in the Peninsula and the Balearic Islands 10%, or IGIC in the Canary Islands, whose rate is 7%, except in the case of officially subsidized homes that have a super rate reduced by 4%.
In addition, when documenting the sale in a public deed, it is subject to the Tax of Documented Legal Acts at the rate of 0.50%, except in the case of housing classified as Official Protection, which is exempt from this tax.
5.1.2 In the case of used housing
Generally transmitted between individuals, the purchase is subject to the Property Transfer Tax exclusively.
5.2 WHO IS PAID?
VAT is paid directly to the seller, who must state it on the sales invoice and in the corresponding deed. Patrimonial Transmissions and Documented Legal Acts are paid through the Self-assessment system in the Mortgage District Settlement Offices located in the Property Registries or in the offices of the Ministry of Economy and Finance of the Autonomous Communities.
5.3 WHAT IS THE TAX RATE APPLIED TO?
The tax rate is applied to the amount stated in the document, which must be the price paid for the purchase, and in any case, the Administration has the authority to review these values ??and if it considers that it must be higher, it will proceed to issue a Complementary Liquidation. about the difference.
5.4 WHAT TAXATION DO MORTGAGES HAVE?
The constitution and cancellation of mortgage loans are subject to the 0.50% type of Documented Legal Acts, applying the same on the total amount of responsibility of each property.
5.5 HOW ARE GARAGES AND BUSINESS PREMISES TAXED?
Garages and business premises are taxed like homes.
How to buy a home in Spain step by step, Guia del Colegio de Registradores (Part I)
Information sources, Guide to the College of Registrars of Spain (Part II)
Before signing a contract, Guide to the College of Registrars of Spain (Part III)
The signing of the contract, Guide of the College of Registrars of Spain (Part IV)
After signing the contract, Guide to the College of Registrars of Spain (Part V)
College of Registrars of Spain, Guide to the College of Registrars of Spain (Part VII)
The information and comments contained in this article do not constitute any legal advice.
For more detailed information, contact our company.