Page 27 - Spanish Insight - November 2019

Taxes to pay when buying

or selling a property in Spain

In Andalucía around 15% of property purchases are carried This is a charge for the increase in the value of the land
out by foreigners and the foreign population in the province during the years of ownership and is calculated by the Town
of Málaga reaches the 14%. Hall based on the Cadastral value and should be paid by the
If you are considering purchasing or selling a property in vendor.
Spain then you should be aware that a number of taxes have 2 - MODELO 211 “RETENCIÓN EN LA ADQUISICIÓN
to be paid. DE BIENES INMUEBLES A NO RESIDENTES” - This is a
Vendors or buyers should be aware of these tax implications retention made when a vendor is not a resident in Spain. 3%
so that they can be budgeted for in advance and taken into of the selling price will be retained at the time of completion
account in the agreed price. and duly paid to the Spanish Tax Office to cover any Capital

taX CORReSpOnDing tO BUYeR: Gains Tax which may be due. If no profit has been made and
1 - “IMPUESTOS DE TRANSMISIONES PATRIMONIALES” the vendor is up to date with his tax obligations he/she can
(ITP) - This tax is payable whenever a second hand property apply for a refund.
changes hands by sale. It is charged by the autonomous As you can see the payment and payment deadlines,
region, (CCAA), in which the property is situated and is together with any other problems or complications that may
generally calculated at a rate of 8% of sale prices up to arise during the purchase or sale of a property, require a
400,000€. If the selling price is higher other increased specific knowledge and so it is recommendable to leave
percentages are applied to the difference. It should be paid these matters in the hands of an experienced lawyer.
within 30 days of the signing of the purchase deed by the
buyer. José Manuel Garzón,
Senior Partner Axarquía Solicitors
2 - VAT & AJD - In the case of the purchase of a new property
when the buyer is the first occupier the tax charged would Axarquía Solicitors is part of Marbella Solicitors Group, a group of
then be VAT, which is calculated at a rate of 10% of the sale lawyers that have more than 20 years experience assisting foreign
price of the property and in addition 1.5% AJD would also buyers and vendors in Andalucia, so do not hesitate to contact us to
be applied. arrange your free, no obligation appointment to discuss the above or
any other legal matters.
taX CORReSpOnDing tO VenDOR:
1 - “PLUSVALIA” - This is a municipal tax payable every time Please Email: mail@axarquiasolicitors.com or ring 952 901 225 -
a property changes hands whether by sale or inheritance. www.axarquiasolicitors.com

up to

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vs Other Law Firms

Legal and Tax Excellence combined with Deep local knowledge and expertise

Tel. 952 901 225 · mail@axarquiasolicitors.com

www.axarquiasolicitors.com · Offices in Nerja and Velez-Malaga

November 2019 Spanish Insight 27