Today, Spain has created quite attractive conditions that contribute to the fact that non-residents began to actively buy, rather than rent, property for a short time. Of course, there are practically no restrictions: you can not change citizenship or residence permit, and the entire legislative system of the country contributes to the investment of savings in some different types of activities. In this article we want to talk with you about property tax in different regions of Spain.
The current structure of the inevitable costs when buying a new home is one of the most important points for the buyer. The real cost item, and therefore the additional amount that the investor must have in his hands, makes you think about the acquisition at the moment or in the near future, since only after all the tax payments have been made will the transaction be valid. But here you need to stop a bit and figure it out:
- who buys;
- what form of payment (cash, non-cash or mortgage);
- where to buy.
Today in the Kingdom you will pay a fee at the conclusion of a transaction for the purchase of property and the amount of compensation does not affect how many days a year you stayed in this country - you arrived on May holidays, or on all holidays in July.
It is possible to get a different percentage of taxation only when you want to change the status of an alien to a citizen. Spanish legislation, the term "resident" means a person who stays in the country continuously for a year, more than 183 days, and in the declaration show the place of work and life of Spain.
In different parts of the country you can buy housing with a differentiated amount of payment. This is due to the fact that there are three levels of mandatory payments, and this model works on the principle of “costing +” - national fees are summed up with the municipal fees.
In most cases, administrative fees are paid only when buying and selling real estate, and all the rest - with further residence. And it does not matter how much you will rest, study or work there - you will have to pay within the legislative field.
What will happen if you do not pay on time?
If there is a debt on payment for the investment object, a ban on any notarial actions with it is imposed and there is a penalty. Let's understand: what is the difference in the tax burden and where it is cheaper to invest in real estate.
To date, the amount of the mandatory payment will differ depending on whether you buy a new (ten% for all) or second homes (from 6.6% in the Canary Islands to 10%).
Features of the calculation of tax payments
In the provinces, like Alava, Vizcaya and Gipuzkoa, as well as in Navarre, there is a special accrual system:
- if the object will be located in rural areas, the rate of contribution may be calculated in the range from 0.3 to 0.9%;
- if you are attracted by the urban infrastructure, then the final value will be increased by several positions and will be 0.4 - 1.1%.
- The duty on the income of foreigners is formed depending on which country you plan to enter in the declaration, as the main place of residence and income, namely if:
- the taxpayer belongs to one of the member countries of the European Union, Norway or Iceland, the cumulative payment will be determined at 19%;
- to other states, your contribution will grow by 5% and will automatically be equal to 24%.
It is worth paying attention to the fact that in the Kingdom the structure of tax payments for the legal registration of acts is fixed in each autonomy separately.
- in Madrid and the Canary Islands, it is 0.75%;
- in Aragon and La Rioja - 1%;
- in Catalonia and Valencia - 1.5%;
- in Navara –0.5%.
Interesting fact. The Spanish tax law provides for benefits when changing ownership of real estate, even for foreign residents.
When forming the tariff for inheritance and donation at the state level, such conditions are proposed under which this rate in a particular place can be reduced. These include the age of the heir, as well as his degree of kinship. The greatest discount is given to minors, but not more than 99%.
Sometimes applied and progressive scale of calculation. For example, I would like to dwell on such as the “personal income tax” in certain regions of Spain. This is one of the most "costly" types of duty, which is calculated based on the level of official salary. In Madrid, the most “sparing” rate of 9.5-21% is used. But this is not the whole amount that needs to be paid: due to the fact that the duty is charged on two levels (city and state), the range of fees rises to 19.5-44%. And this is still the lowest amount of payment.
For clarity, you can compare with other cities:
- Valencia - 21.90-46.48%;
- Aragon - 20-44.5%;
- Galicia - 21.5-44.5.
Every year, municipalities review the size of payments and the conditions for their use for the reasons of attracting new tourist flows, accumulating additional investment funds or solving problems of illiquid developments.
To understand these subtleties, as well as to get a profitable package in the cost-pleasure ratio system, we suggest you to consult our specialists for the selection of the most optimal option for you.