Advice in relation to the sale or purchase of property in Spain
Taxes involved in property transactions
Whether you are purchasing or selling property in Spain it is important
to understand that it is not necessarily like doing so in your own
country. You need to consider that tax considerations, customs and
language converge to make this a potentially hazardous undertaking.
All deeds for the conveyance of property are required to be executed
before a Notary and be registered on the Property Register.
Stamp duty on property purchases is 7% of the value declared in
the title deed. In some cases an option can be exercised so that
this can be paid as IVA and so be deductible in a business situation.
It is essential that the title of the property to be purchased be
fully established and that any mortgages and liens be recognised
and discharged if necessary.
It is important to ensure that the vendors have the ability to
be able to dispose of the property that is being offered for sale.
This may not necessarily be the case, for example, for a property
that has been inherited.
In the case of a sale by a non-resident vendor the purchaser is
required to withhold 5% of the declared value in the title deed
and forward this to the Tax Office. This retention is on account
of the vendor’s Capital Gains Tax liability.