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Tax payable on the purchase of a new home
The VAT levy or IVA (=Impuesto sobre el Valor Afadido) in Spanish is 10% on new construction + additional tax on top of VAT from 0.5% to 1.5% depending on the province.
The AJD (=Actos Juridicos Documentados), a real estate purchase tax, is 0.5% to 1.5%.
Costs for the land registration, varying from 0.1% to 2% (between €1000,- and €2000,-)
Tax payable on the purchase of a resale home
The transfer tax or ITP (=Impuesto sobre Transmisiones Patrimoniales Jin Spain is between 8% and 10% depending on the purchase amount and the Province and can be up to 15%.
The AJD (=Actos Juridicos Documentados), a real estate purchase tax, is 0.5% to 1.5%.
Cost of land registration ranging from 0.1% to 2% (between € 800.00 and € 2000.00).
The annual tax payable
personal income tax
Every foreigner resident in Sudan must file a tax return in relation to their personal obligations and on their worldwide income. If you stay in Spain for more than 6 months a year, you will be considered as a tax resident even if you have not yet applied for a residence permit.
In Spain the income tax is progressive, ranging from 24% to 43%. As a Spanish resident you can deduct up to a certain amount of mortgage charges (interest and repayments) from your taxable income.
Income tax for non-residents (people without a Spanish residence permit)
The Spanish tax authorities tax foreign homeowners with a kind of 'rental value default'. About 1.1% of the cadastral value is tax due approximately 24%. If you rent out the house, you will have to pay approximately 24% tax on the rental income. Over the period that the house was not let, you pay proportionally the rental value.
IBI Tax
The owner of the property pays between 0.3% and 0.8% property tax as an indication. The percentages depend on the municipality.
Real estate tax is always paid, even if you are not registered in Spain as a resident.
