Taxes

These are the taxes associated to the construction, acquisition or sale of a property in Spain.

Property Tax

Property Tax (Impuesto sobre bienes inmuebles – IBI) is paid every year by owners of any type of real estate property.

  • This tax is fixed by Town Halls and it is applied to every single property inside their municipality.

  • It is calculated based on the cadastral value of the property (i.e. the value of the land plot plus the buildings).

  • A tax coefficient ranging between 0.4% to 1.3% is typically applied for urban properties.

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Tax on Capital Gains

Tax on Capital Gains (Impuesto de plusvalía or IIVTNU) is charged by Town Halls on urban properties.

  • This tax is calculated based on the increase of the value of the property over the last twenty years taking into consideration the current cadastral value of the property (only the land, not the building).

  • In the case of an onerous transtaction, such as a buying-and-selling operation, the person who transfers the property will have to pay the taxes.

  • If the seller is not a Spanish resident, the tax will have to be paid by the buyer .

ICIO Tax

This construction tax is charged by the Town Halls and must be paid any time a works license is required. It amounts to around 5% of the total construction costs.

Property Transfer Tax and Stamp Duty
  • Property Transfer | This tax is paid when a property is sold. It is paid by the buyer.
  • Stamp Duty | This tax charges for the formalization of all the related paperwork