Tax in Spain

When a taxpayer sells a home in Spain, they are obliged to pay the infamous municipal capital gains tax (called the plusvalía municipal in Spanish) unless they have incurred losses from the transfer.

All those years of hard work are over, and you can finally fulfil your life-long dream: tell everybody “hasta la vista” and retire to Spain. And why wouldn’t you?

When a taxpayer acquires a home in Spain, he or she can use the website of the Tax Department of the autonomous community they’re in to find out what the property is worth for the purpose of paying the ITP or ISD tax (depending on where it is) and avoid overpaying.

Almost all transactions are taxed and it’s very difficult to escape tax control. However, there are occasions when you can be exempt from paying certain taxes.

Until now, owners of holiday rental properties have been able to enjoy a 60% reduction in their income tax rate.

If you’re moving to Spain permanently and becoming a Spanish resident, you will need to register your vehicle in the country. From that moment on, you have six months in which to register your car with the authorities.

In a market in which there are more and more owners who rent out their properties, it is important to know in which cases the landlord can benefit from the 60% reduction for rent.

ITP (Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos Documentales), in English Property Transfer Tax and Documented Legal Acts, is an indirect tax which is applied to onerous transfers of property, in other words operations of exchange of wealth or assets between living persons (such as

Many Spanish Autonomous Communities have already approved their budgets for this year, pre-empting the government, which hopes to be able to present its General Budget of State 2018 before Easter.

The cost of buying a house is more than just your monthly mortgage payments.