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Impuestos por Comprar Propiedad en Espana

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I am also an american, and bought property in Sevilla in 2000. The broker omitted telling me that there were any closing costs, although I asked him. At the closing, they tell me in the notaria that I have to pay an extra 30.000 dollars in taxes. They were lying: it turned out that the only impuesto I had to pay was the transmission taxes, 7 per cent at the time (now is 8 per cent). I had to call in a lawyer, who charged me for the registration, plus her fees, and she came out with the wrong solution: escriturar por less. This impacts the plusvalia (capital gains) now that I am trying to sell it. There are two plusvalias to pay, the Hacienda and the municipal. There is also an "imputed" tax, by which, if you are a foreigner, the "impute" you an income for the total value of your property, and you have to pay income taxes in this " imputed" income (this in addition to the normal real estate tax, the so called IBI). The total cost of selling the property in Spain acually is above 25% of the total price of the property. conclusion: I don't advise any foreigner to " invest" money in a property in Spain. If you like the country, just rent, you are entitled automatically to a 5-years contract, renewable for another 3. By then, after 8 years of trying to "live" in Spain, fighting the constant rip-off of your neighbors, you might have lost all desires to "live" in spain. I believe the spaniars are too selfish and envious of foreigners, and consider them a safe target for ruthless exploitation and deceptions. Jerry grosof. g5grosof@msn.com

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