buying and selling real estate in spain by non ... - taxation · income tax: 1,1% or 2% of the...

Euro Economics | Tax Legal Accountancy Spain | Barcelona Bilbao Girona Ibiza Madrid Marbella Valencia | Alliances: Mallorca Tenerife Lisboa EuroEconomics.com | 2013

Quality Partner in Spain

BUYING AND SELLING REAL ESTATE

IN SPAIN BY NON-RESIDENTS

Euro Economics Group

Barbara Ingenbleek

Lawyers, Tax Advisers & Accountants



ENOUGH REASONS

ENOUGH REASONS TO BUY A PROPERTY IN SPAIN



REAL ESTATE AGENT

● Free profession

● No exclusivity – no file

● Commission: 5% of purchase price plus VAT

● Reservation contract / deposit: between E 3,000 and E 6,000

● Contact a lawyer !



● Reservation contract + E 3,000 and E 6,000

● Check – urban matters / town planning

● Check – debts / charges

● Spanish fiscal number: NIE

STEP 1



STEP 2

● Advise: buy or not buy

● Sign sale / purchase contract + 10% deposit

● Seller decides not to sell: return deposit + same amount as

damage restitution

● Buyer decides not to buy: loss of 10%

● Opening bank account

● Proposal buildings – fire – theft insurance



STEP 3

● Preparation title deed – Cancellation mortgage

● Notary: to record

● Payment by bankers draft

● Ownership - responsibility



STEP 3

Charges & Taxes: seller

● Plusvalía Municipal

● Commission real estate agent

● Capital gains tax: 21% for non residents

- 3% retention



STEP 3

Charges & taxes: buyer

● Notary charges

● Land registry charges

● Lawyer: 1% of the purchase price + VAT

● Purchase from developer

- 10% VAT plus 1.5% stamp duties Andalucía

● Purchase: 2nd transfer – transfer tax Andalucía

- until E 400,000: 8%

- between E 400,000 – E 700,000: 9%

- as of E 700,000: 10%



STEP 4

● Payment: charges and taxes

● Arrange utilities: electricity, water, gas, telephone etc.

● Arrange direct debits: rubbish collection, community of owners etc.



Yearly obligations

● Town hall: property tax

● Town hall: fee rubbish collection

● Income tax: 1,1% or 2% of the cadastral value is taxed at 24.75%

● Wealth tax: assets minus debts

ej. properties minus mortgages, bank accounts, cars, boats

Exemption: E 700,000 ¦ value assets > 2 million = tax declaration

Scale: 0.20% to 2.5%

STEP 4



NOTES

● Tax on rental income: 24.75%

deduction of: property tax, rubbish collection fee, fee

community of owners

● Crisis?

● Buy a property in Spain!



CONTACT

Euro Economics

Quality Partner since 1996 …

• Consell de Cent 373, 08009 Barcelona

Tel: +34 93 215 12 23

[email protected]

• Calle Mayor 10, 48930 Getxo, Bilbao

Tel. +34 94 431 63 07

[email protected]

• Rambla Vidal 16, 17220 San Feliu, Girona

Tel: +34 97 232 22 52

[email protected]

• Calle de Corona 1, 07800 Ibiza

Tel. +34 97 131 77 67

[email protected]

• Principe de Vergara 73, 28006 Madrid

Tel: +34 91 521 73 48

[email protected]

• Avenida Ricardo Soriano 5, 29601 Marbella

Tel: +34 95 285 93 80

[email protected]

• Pl. Alfonso el Magnánimo 1, 46003 Valencia

Tel: +34 96 394 28 23

[email protected]



QUALITY PARTNER IN SPAIN

... Everyone we recommend this firm to,

just swears they are the best …

[John H. Brigs, World Wide Consulting, USA]

Jan Hendrik van Houten

Partner

Barbara Ingenbleek

Partner

Jeroen Oskam

Managing Partner

Dick Roest

Partner

Euro Economics | Barcelona Bilbao Girona Ibiza Madrid Marbella Valencia | Alliances: Mallorca Tenerife Lisbon EuroEconomics.com | 2013

buying and selling real estate in spain by non ... - taxation · income tax: 1,1% or 2% of the...

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