Spain » Taxes

Income Tax	VAT	Capital Gains Tax	Transfer Tax

Income Tax

Property used for commercial purposes such as owned by a company for income generation is liable to 35% income tax. Residential property holders are liable to pay 15-45% tax, which depends on the earning of that individual in Spain.

VAT

7% IVA (VAT) is levied on purchase of brand new house, in addition, a 0.5% stamp duty is also charged. However, if property is purchased for commercial purposes such as property in commercial areas, or property reserved to be turned into garages, parking places etc, the value of IVA increases by 16%.

Capital Gains Tax

A capital gains tax is charged on the sale of a property in Spain. The Spanish Law implies that 5% of the actual price of the property is withheld by the purchaser to ensure that the seller will not vanish with the money. This amount is known as capital gains tax and it varies, depending on the actual value of the property.

Transfer Tax

A 7% transfer tax is applicable on the re-sale of the property.