CHARGES TAXES & EXPENSES FOR PROPERTY

Capital Assets Tax

(Impuesto sobre el Patrimonio).

In addition to the Real Estate Tax (IBI), all property owners, resident and non-resident alike, have to pay a Spanish tax on their capital assets. However, the amount of tax you are liable for differs depending on whether you are resident or non-resident. As a non-resident you will be taxed only on your Spanish property. The taxable amount is the higher of the purchase price, as it appears on the deeds or ‘escritura’, and the ‘valor catastral’, which is the town council’s valuation for the purposes of calculating the amount of IBI to be paid. The tax is very low; for capital assets up to the value of €250,000 only 0.2% is levied.

This is clearly a complicated area and it is best to seek professional advice on your individual case with an accountant.

It is expected that this tax will cease to be collected with effect from the end of the year 2008 / 2009, but the appropriate law has not been passed yet.

PREV.     NEXT

1. Finding a Property.
2. Real Estate Agents.
3. Choosing a Lawyer.
4. Negotiating the purchase.
5. The Reservation Contract and Deposit.
6. Exchange of Private Purchase Contracts.
7. Completion.
8. Registry.
9. Special Considerations when buying Off-Plan.
10. Fees when buying.
11. Taxes when buying.
12. Other Expenses.
13. Differences between the contract price & the amount actually paid.

Selling

1. Real Estate Agent & Lawyer.
2. Fees when selling.
3. Taxes when selling.

Charges Taxes & Expenses for Property

1. Service Charges in Communities.
2. Annual Real Estate Tax. ( IBI )
3. Rubbish Collection Tax.
4. Capital Assets Tax.
5. Property Owners’ Imputed Income Tax.
6. The Tax Returns.
7. Insurance.
8. Mortgages.

Other Legal Matters

1. NIE – Identification number.
2. Open Spanish Bank Account.
3. Making a will in Spain.
4. Inheritance Tax.
5. Investment Opportunities on Spain.

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