LINKS for BUYERS
Property Taxes and Charges
Find out about the taxes and charges levied when buying property in Spain…
There are two taxes on all residential property. These are collected by the State for the local authorities. These taxes are assessed at individual rates according to location and can vary substantially. Ask the estate agent for these details when looking at properties to buy.
Taxes IBI (Local Taxes)
Due on all property registered at the Land Registry except agricultural land. The owner of the property is liable for paying this tax. Even if a property is only used occasionally, if it is furnished and supplied with water and electricity this tax must be paid. The amount varies based on location and the value of the property.
Basura (Rubbish Collection)
Town Hall tax for the collection of rubbish.
Both the above are paid to a local government collection agency called SUMA, each town and village usually has a SUMA office.
Comunidad (Community Charges)
For those owning property such as an apartment within a complex there are maintenance and service charges to pay. Potential buyers should consider these charges before purchasing. Charges vary according to the size and quality of the complex, and the facilities such as lifts, swimming pool, gardens, tennis courts.
Spanish Succession Laws – the Law of Inheritance
Buyers are advised to draw up a Spanish will with a notary to cover assets in Spain. This becomes essential if the owner’s situation is more complicated with previous marriages, particularly those involving children and step-children.
Capital Gains Tax and Wealth Tax
This is currently changing; consult a professional tax advisor.
The Patrimonial Tax is a yearly tax based on the rateable value of the property. It is paid once a year, in December.
Currency Exchange – Foreign Currency Direct plc
Every time you send money abroad through your bank you are losing out on the exchange rate. Comparisons have shown that Foreign Currency Direct can save our clients as much as 3% – 6% on currency transfers.
They have been voted ‘Best Exchange Rates’ & ‘Best Currency Provider’ by the Sunday Times for three years running and they charge no commissions or hidden fees.