What You should know about Spanish Tax

The number of non-resident foreign citizens buying property in spain has increased gradually since 2010 even though the number of sales is still low: they represented 1.28% of total sales in the third quarter of 2014 according to figures from the ministry of development. however, properties are also sold so, as for any transaction, fiscal obligations exist. what taxes need to be paid for the purchase or sale of a property?

When a person, whether spanish or foreign, makes the decision to buy a property in spain, not only do they need to pay for the property, they also need to include other mandatory expenses, like the cost of having the property valued and the applicable taxes

Taxes on the purchase of a property

There are two different taxes depending on whether the property is new or second hand

– New properties

The tax on this property is 10% iva (vat). therefore, on a property costing 250,000 euro, the tax would be 25,000 euro

– Pre-owned properties

The taxation on this type of property is the impuesto sobre transmisiones patrimoniales (itp)  (tax on property transfers) that varies by autonomous community, but it ranges between 5% and 10% of the price of the deed (between 12,500 and 25,000 euro for the previous example). however, the tax office can claim a higher amount if it thinks that the property is worth more than what was paid for it. the tax office in each autonomous community has tables with minimum prices that it uses to calculate the minimum itp a person would have to pay when buying a property

Therefore, an uninformed person buying a pre-owned property may find that event though they have paid 7% tax on the purchase price to the tax office, they may find themselves obliged to pay another amount of itp. this amount would be 7% of the difference between the value of the deed of the property and the minimum value of the property according to the tax office, plus the corresponding interest for the late payment
Fhbrokeror example, on an apartment purchased for 250,000 euro, the itp would be 17,500 euro. if the tax office tables say that this property is valued at minimum 300,000 euro and the corresponding itp should be at least 21,000 euro, it will demand a payment for the difference: 3,500 euro, plus interest

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Villas Valencia offers properties in Valencia at Spanish prices. What`s more, we don`t charge the buyer (as most other agencies do). We are an English locally run estate agent company dealing with properties in a picturesque area around the city of Valencia.


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Your advice was clear and brilliant. You completely understood our requirements and objectives, facilitating our new purchase. Thank You! - Mr L, Now living in Lliria

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Thank you for all the help buying our property in Valencia. With so much to think about, you explained everything well and made it all very easy. Cant wait to move out there fully and enjoy a G & T on our balcony with you.

- Ben, house in Naquera

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