The tax systems for foreign nationals and residents in Spain are two different things. This will explain the peculiarities of the Spanish tax policy towards foreign buyers and homeowners.
Property purchase tax
A foreign national must pay between 8 and 11.5% to buy real estate in Spain. The amount of tax depends on the following factors:
- Property condition—secondary or new housing?
- The owner—a bank or a developer;
- Whether the housing has been sold before or not.
How much to pay for the sale of the property?
The sale of real estate in Spain is also subject to capital and income taxes. The capital tax varies from 19 to 24%.
In addition, you will need to pay a municipal tax to increase the value of the land—”plusvalía”. There is a special formula for calculating this fee. The amount of tax depends on the year of the property’s construction and its fiscal value.
Plusvalía is paid directly to the municipality where the property is registered. The IBL receipt contains the land price and the building. Regardless of real estate market prices, land prices rise every year, so you will always have plusvalía, even if you sell your home cheaper than you bought it.
Before selling your property, contact the municipality where you registered your property for sale in Barcelona and ask for the calculation of the Plusvalía price. If the housing seller is a non-resident of Spain, the buyer pays the tax.
Capital gains tax
Under Spanish tax law, capital gains tax is set at 24 % for non-residents. Spanish citizens pay a progressive rate of between 19 and 45 %, depending on their income level.
Important! If you have owned an apartment for over three years, you can apply for tax benefits.
Basic tax fees for foreigners
Property owners in Spain pay the following fees:
- IBI (Impuesto sobre Bienes Inmuebles)—real estate tax based on the value of the property;
- Garbage collection and cleaning of the adjacent territory—from 500 to 1500 euros;
- Personal income tax – 24% fixed;
- Property tax.
More about IBI tax
Everyone pays this tax, whether you are a resident or not. The tax rate ranges from 0.4% to 1.1%, depending on the region of Spain.
Assistance in purchasing real estate in Spain
Are you going to start investing in foreign real estate? Find your option at a favorable price on Spain-Real.Estate. Experienced specialists are always ready to advise and answer any questions about buying and renting Spanish property. If necessary, you can get comprehensive support for a secure transaction.
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