IBI property tax

Foreign demand for Spanish property continues to grow, making it increasingly important for buyers to understand the taxes that apply to non-resident homeowners. The purchase of a property is subject to VAT or Property Transfer Tax (ITP), depending on whether the home is new or resale, while Stamp Duty (AJD) may also apply. Non-residents who own property in Spain must meet ongoing tax obligations, and sellers are required to declare any capital gain or loss through Spain's Non-Resident Income Tax (IRNR) system.

Unbeknownst to most non-resident property owners, when buying property in Spain, you automatically become liable to pay IBI tax the following year. No one will give you a heads-up on this tax, so it is up to you to find out how much you owe and comply with your local Tax Authorities.

Congratulations, you are now the proud owner of a Spanish property! It’s understandably a time to be giddy and excited. But has anyone bothered to tell you about the ongoing maintenance costs and taxes of owning a Spanish property?

Almost all properties are subject to Property Tax (IBI), but who should pay it when renting, the owner or the tenant?

As we had published in idealista previously (Andalusia lowers taxes, including Property Transfer Tax and Stamp Duty -13th May 2021), Andalusia slashed its taxes on buying property (both on resale and off-plan property) in a bid to combat the adverse effects of Covid-19 in the economy.

Congratulations, you have found a buyer for your Spanish property! You should now instruct a lawyer to represent you in the sale, particularly if you are non-resident in Spain. To secure the deal, your appointed lawyer will require from you a long list of documents you should have ready at hand.

All transactions are taxed and even more so if they involve real estate. This year there have been several new developments related to taxes in Spain, specifically those regarding municipal capital gains, property and personal income.

It’s all very well knowing where you want to buy property in Spain and how much the average house prices are there, but what about the price of upkeep and maintenance?

Selling a home is often a costly process, not only economically, but also in terms of time, effort and emotion.

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

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.