– 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:
Source: New feed