Property Tax in Spain

Are you thinking about buying a Spanish property? If so, it’s important to understand the property tax implications.  Consider who will pay, own and use the property and who will become the registered owner at the Land Registry. 

Therefore, we have prepared some important points to consider when planning to buy or sell a home in Spain:

You will have to pay capital gains on the sale of a property. We can calculate this type of property tax for you. It is based on the difference between the value of the property at the time of its acquisition and the value at the time of the sale. Therefore, for property tax related issues, please make sure to contact us.

Non Resident Vendor

If the vendor is a non-resident in Spain, the purchaser must retain 3% of the purchase price. The Tax Office requires this payment on account of the potential liability to Capital Gains Tax.

Your lawyer will inform you about existing exceptions. If you have no profits on the sale then you can ask the Tax Office to refund this 3% retention. Therefore call us to see if we can help you make some savings when it comes to Property Tax.

Plusvalia: This is a Municipal Property tax paid resulting on the increase in value of the land since the previous sale and is fixed by the local Tax Authorities. We can calculate it according to the size of the property. Payment of this tax is, by law, to the account of vendor.

Although, not a property tax, if there is a mortgage on the property, you should take into account bank costs in the cancellation of a mortgage. Also, don’t forget the notary and registry fees.

Understanding Property Tax in Spain

So, let us take care of every detail for you when it comes to Property Tax. With over twenty years of experience as registered lawyers in Marbella, our expertise is Property Tax in Spain means we can help you make the most of your home . We are particularly focused on non-residents.

We can prepare clear documentation in both English & Spanish.