Advices > The taxes ...


Within the expenses that are generated in the operation of transaction, there exist a series of taxes:
  1. Taxes on the Transmission:

    • Value Added Tax (VAT): With general character it burdens the transmissions of the property, when this transmission is made by the promoter. It is calculated applying a percentage on the price of the transaction.

    • Property Transfer Tax (stamp duty): With general character it burdens the transmissions of the house, when this transmission is made between individuals or it is a second transmission made by a company that is subject to IVA. It is calculated just as the previous one.

    • Tax on capital transfers and documented legal acts (AJD): It burdens notarial documents, in this case the deed of sale. It is calculated just as the previous ones.

    These taxes are applied based on the salesman of the house and the type of the same one, according to the following table:

      New Property   New Property (VPO)   Used Property
      VAT: 7% and
      AJD: 0,5%     		  VAT: 4% and
      AJD: 0,5%     		  Stamp Duty ITP:6% or 7%
      according to Independent
      Community

  2. Capital gain:

    • Tax on the Increase of Value of Lands: It is a tax of municipal character. It burdens the increase of value of the property that takes place when transmitting. In their calculation a series of scales relative to the place and time passed from the last transmission take part.
  3. Tax of Real Estate Sing (IBI):

    • It burdens the entitlement of the property. It is calculated applying a percentage on the Cadastral value of the same one. The salesman must be up-to-date with the payment of this tax before transmitting the house.

    In relation to the Mortgage Loan, the applicable tax is the one of Documented Legal Acts:

    • It burdens the notarial documents, in this case the mortgage deed. It is calculated applying 0.5% on the value of the hypothecating responsibility.
Except for pact between the parts, the payment of these taxes corresponds:
  • To the Buyer: He has to pay as well the tax that burdens the transmission as the one of mortgage constitution.
  • To the Salesman: The Capital Gain Tax and to be up-to-date with the payment of the IBI corresponds to him.
Remember: Do not forget at the time of fixing the price to consider the amount of all the taxes and to determine in the deed who will make the payment of such. As you can see they are important amounts.