Tax rates in Spain of Property Purchase and sale apply - Updates 2026!
The following tax rates in Spain of Property Purchase and sale apply:
1. IVA - VAT: on the purchase of new built properties:
The VAT on the purchase of a newly built house or flat and associated garage / parking space by a constructor (promoter) is 10 %. There is as well a stamp duty of 1.5%.
2. Capital gains tax:
Who sells a property in Spain as a non-resident must pay capital gains tax on the net profit, which is the difference between the purchase price and the selling price. The applicable tax rate is 19% on the net gain if the seller is a tax resident of an EU country or of the European Economic Area (Norway, Iceland or Liechtenstein), and 24% if the seller is resident in any other country outside the EU/EEA. When calculating the taxable gain, certain acquisition and improvement costs related to the property may be taken into account from the date of purchase. Special transitional regulations may also apply to properties acquired before 1994.
If the seller is not resident in Spain the purchaser has the obligation to retain 3% of the purchase price at the signing of the deed of sale and purchase and pay it to the Spanish Tax Office as payment on account of the vendor's capital gains tax. This amount will be credited to the final tax. If the amount of the 3 % is higher than the final tax amount, the seller is entitled to a refund.
3. ITP -transmission tax:
The real estate transfer tax on the purchase of real estate that accrues on the sale by private individuals or resale is calculated in Andalusia from 28.4.2021 as follows: For villas / apartments and plots they are fully taxed at 7%, regardless of the amount.
4. -Tax on the increase of value of urban plots - Plusvalía:
The tax on the increase of value of urban plots, also known as Plusvalía-tax, your lawyer needs to check with the respective community. This is paid by the seller. If he is not resident, the buyer is liable!
The Plusvalía tax is waived if you can prove that the property was sold with a loss.
5. VAT – general VAT rate:
The general VAT rate is 21 %. This is the case for building plots, commercial locals and common services in which the seller is an entrepreneur.
6. Commercial rental:
For commercial rentals is the retention, to which the tenant is obligated against the Spanish treasury in favour of the tax account of the landlord, since July 2015 19 %. The tenant has to pass that amount (retención) with the form “Modelo 115” directly to the tax agency.
7. Inheritance tax exemption:
In Andalusia, the inheritance tax exemption for inheritance to spouses and descendants has been increased to € 1,000,000, provided that the estate of the heir in Spain before the inheritance is not more than € 1,000,000.00.
¡Check with your attorney for precise information in your own case!
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