Spanish property taxes for non-residents

In case of acquisition of a house in Spain there are a series of taxes to be paid in the transfer of a property. Everything depends on the type of property acquired and where it is located. Each Spanish autonomous community may have different legislation on the applicable tax rates.

Spanish property taxes for non-residents

When a property is acquired, different taxes must be paid:

  • VAT – At a fixed rate of 10% of the declared value of the property.
  • AJD – (Documented Legal Acts) is additional to VAT and is calculated at a rate of 1.5% for those properties that have been acquired in the Valencian Community or in Andalusia and of 2% of the declared value for properties in the Community of Murcia.

On resales:
In this case, the ITP (Individual Transmission Tax) must be paid at a rate of:

  • 8% of the declared value of the property for those properties placed in Murcia.
  • 8% of the declared value of the property for those properties placed in Andalusia with a price of up to 400.000 euros. If the value is higher, the lien will have a higher rate.
  • 10% of the declared value of the property for properties placed in the Valencian Community.

Also, as a non-resident owner of a property in Spain, it must be borne in mind that certain taxes must be paid in this country, regardless of whether the property is used intensively or only occasionally and even if it is kept empty.
Another tax is the IRPF, which is around 0.15% of the value of the property and must be paid annually, corresponding to the previous calendar year.

If you need help with these tax issues on properties in Spain, do not hesitate to consult good professionals to advise you at all times on what are the taxes that must be paid to be an owner in this country.

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