Taxes When Buying a House in Spain
Investing

Taxes When Buying a House in Spain

Aaron Aaron

At Purchase

ITP (Transfer Tax) - Existing properties

  • Valencia region: 10% of purchase price
  • Applies to existing properties

VAT - New builds

  • 10% for residential
    • 1.5% AJD (stamp duty)

Annual Taxes

IBI (Property Tax)

  • Similar to council tax
  • €300-1,500/year depending on property

Wealth Tax

  • Only above €700,000 assets in Spain
  • Progressive: 0.2% - 2.5%

Income Tax (non-residents)

  • 19% on imputed rental income (1.1% of cadastral value)
  • Or actual rental income

At Sale

Plusvalía

  • Municipal tax on land value increase
  • Complex calculation, seek advice

Capital Gains Tax

  • 19% on profit for non-residents
  • Depreciation and costs deductible

Tip

Work with a tax advisor who knows both systems.

Aaron

Written by

Aaron

Founder & Real Estate Agent

Aaron has over 10 years of experience in the Costa Blanca real estate market, helping buyers find their dream home.