Where is your investment property located?

France
France
UK
UK
USA
USA
Spain
Spain
Ireland
Ireland


Filing Deadline

Spain Tax Deadline December 31st


Property Ownership in Spain

Property Ownership Taxes

Local Property Tax or IBI (Impuesto de Bienes Inmuebles)

This is a rate tax which varies depending on the municipality and the level of urbanisation and services relating to your property.

The filing period is normally between September and November of each year and the tax is based on the cadastral value of the property.

It is important to check with the local town hall that you are registered for this tax and to ensure that you receive any notifications. It should be noted that reminders are not always sent out and if you do not pay on time the Spanish Authorities may incur interest and penalties.

It should be noted that the Municipal Authorities normally allow the payment to be made by direct debit which makes it easy for the taxpayer to pay the tax before the deadline and thus avoid surcharges.

Transfer Taxes (Impuesto de Transferencia de Propiedad)v

Transfer taxes at a rate of 7% or 8% apply on the acquisition or transfer of residential property depending on the various municipalities. This rate includes 0.5% (or 1% in some regions) stamp duty.

Many people try to undervalue their property for the purposes of reducing this tax, however it is important to note that severe penalties are payable in respect of under declarations which, in addition, can lead to Capital Gains Tax headaches at a later date.

The declared value on your purchase is the base cost used by Authorities when assessing the Capital Gain you make on the disposal of the property which can lead to an inflated gain.

VAT (IVA)

VAT is levied on new properties at the rate of 8% (5% in the Canaries).


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