New Property Tax (IVA) When Buying A New House In Spain 



Property Tax in Spain for New Properties

 Property tax in Spain, as mentioned in other post about Property Taxes in Spain there are 2 types of property taxes when buying a house.
– One for second hand properties (ITP) , Property Transfer Tax
– and one for new ones, IVA (VAT) (stamp duty)All new properties  in Spain are required  to pay IVA tax.
To know a little more about this tax:- It is paid one time when  the house is new.  Next time it is sold It will pay ITP.
– Most of properties pays a 10% of IVA tax.  Social protected property pays as low as 4%.
– The payment is due when purchasing the property after signing at the Notary.
– Sometimes a new property had an owner before, and then we should pay ITP instead of IVA.
– If the property is sold by a company, you still have to pay the same IVA, a 10%.
– In some areas as Catalonia, the ITP and IVA taxes have the same rate, a 10%.
– IVA is not the only expense when buying a new property in Spain, there are other expenses.

A 10% sounds expensive, but it is still one of the lowest IVA tax in Europe for properties:

Taxes for new property Spain

Cristian de la Torre – Your Real Estate Buyer´s Agent in Spain

Source: New feed