Typical Taxes and Fees
When buying or selling a house in Spain, you will incur several taxes and fees. These may include:
- Property transfer tax: This tax is levied on the purchase price of the property and ranges from 6% to 10% depending on the region.
- Value-added tax (VAT): If you buy a new property in Spain, you will need to pay VAT instead of the transfer tax. The VAT rate is currently 10%.
- Notary fees: These fees are paid to the notary who handles the transaction. They usually amount to around 0.1% to 0.5% of the property’s value.
- Land registry fees: These fees are paid to the land registry to register the property transfer. They usually amount to around 0.2% to 2% of the property’s value.
- Real estate agent fees: If you use a real estate agent to sell or buy a property, you will need to pay their fees, which usually amount to around 3% to 5% of the property’s value.
Property Tax
In Spain, property tax is levied by the local government and is based on the assessed value of the property. The tax rate ranges from 0.4% to 1.1% of the assessed value.
Capital Gains Tax (CGT)
If you sell a property in Spain, you may be subject to capital gains tax. The tax rate is currently 19% for EU residents and 24% for non-EU residents, and is applied to the difference between the sale price and the purchase price.
Inheritance Tax
In Spain, inheritance tax is levied on the value of the inherited property. The tax rate depends on the value of the property and the relationship between the deceased and the heir.
Gift Tax
If you receive a gift of property in Spain, you may be subject to gift tax. The tax rate depends on the value of the property and the relationship between the giver and the receiver.
Tax on Property Income
If you rent out your property in Spain, you will be subject to tax on the rental income. The tax rate ranges from 19% to 47%, depending on the amount of rental income.
Tax Advantages
If you buy a house in Spain and use it as your primary residence, you may be eligible for certain tax deductions. These include deductions for mortgage interest and property tax. Additionally, if you are a first-time homebuyer and the property’s value is less than €500,000, you may be eligible for a transfer tax exemption or a reduced VAT rate of 7%.