Buying a house in Spain implies different procedures and taxes, which means expenses. Knowing all the costs of purchasing a home will be fundamental because they affect the total outlay of acquiring the property....continue reading "Costs of Buying a Home in Spain: an Essential Guide for Foreign Buyers"
The decision of the Andalusian government will have a significant impact on those who buy a home before December 31, 2021, the end date of the measure. We must consider that the Tax on Patrimonial Transmissions and Documented Legal Actions is the most outstanding tribute that buyers of second-hand property must pay.
In Andalusia, this tax levied between 8% and 10% according to the property's value. Nevertheless, since the end of April, the Tax on Patrimonial Transmissions has become a single general rate of 7%. Meanwhile, that of Documented Legal Actions, which is satisfied when formalizing the public deed of sale, goes from 1.5% to 1.2%....continue reading "Andalusia reduces the Tax on Patrimonial Transmissions and Documented Legal Actions"
If you are a non-resident foreigner in Spain and do not know what taxes you have to pay when buying or selling your home, we help you to understand what taxes you have to pay. ...continue reading "What taxes does a foreigner have to pay to buy or sell their home in Spain?"
It seems rather ironic that a tax which is linked with the property market should have shot up during the years when the construction industry has been at a virtual standstill, but that is the case with the ‘plusvalía’, which is a municipal capital gains tax charged on the increase in value of the land when a property changes hands. This tax has become a veritable gold mine for town halls in the province of Málaga.
The ‘Impuesto sobre el Incremento del Valor de los Terrenos de Naturaleza Urbana (IVTNU)’, to give it its proper name, is levied on the increased value of a property when it is sold, compared with its value when it was bought. When a property is sold to somebody else, the tax is paid by the vendor. If it is inherited or given as a gift, the person acquiring it pays the tax.
The increase in revenue from this source began in 2013 and has continued: figures from the Provincial Revenue Board and the five local authorities who are not part of the organisation (Málaga, Fuengirola, Mijas, Benalmádena and Alhaurín el Grande) show that in 2015 the total amount raised was around 135.7 million euros, compared with 99.8 in 2014 and 80.3 million the previous year.
...continue reading "The ‘plusvalía’ has become a gold mine for town halls in Málaga province"
Spain’s Tax Agency is targeting the owners of apartments who placed rental ads last year in a crackdown on unreported income.
“According to data in the Tax Agency’s power, you have placed property rental ads in various media, including the internet.”
The note is a reminder that any income from such rentals must be declared, in the same way as income from foreign pension schemes or other foreign assets.
...continue reading "Taxman turns attention to hidden internet property rentals"