Real estate taxation in Spain: useful tips to make sure you're not wrong

 

Real estate taxation in Spain: useful tips to make sure you're not wrong


Spain continues to experience a period of strong growth and commercial expansion, which began in 2014, causing great interest in potential investors.
Also at the real estate level has been recorded this situation of extreme well-being, which seems impossible to stop. More and more people wanting to buy a property in Spain, because the entire economy marks important and positive elements:
Attractive prices, political stability, rising gross domestic product, highly developed infrastructure, rising domestic demand, lowering the unemployment rate.
But you need to understand how to move to avoid falling into error (at the level of jurisdiction) And know the benefits that you can enjoy.
First, in Spanish law are provided for different types of rights on real estate.
The rights on the ground and those on the buildings on the ground are not severable.
This is an exception: the hereditary construction right, which provides for its separation. The beneficiary of this right can build on or under the land of the owner of the building in exchange for a periodic rent. The contract is temporary: once the deadline has expired, ownership of the building passes to the owner of the building. The contract duration has a maximum limit of 99 years and the validity is given by the registration of the deed and entry in the Spanish real estate register.
These rights can be enjoyed by individuals and entities, both private and administrative. Since 1992, the regulations governing foreign investments have liberalized all investments in Spain.
For greater protection and security, investment rules are always linked to the place of origin of the investment, rather than to nationality. EU citizens are an exception to this rule.
Let us now move on to the purchase and sale of immovable property.

                                                          
Preliminary agreements are often used for real estate transactions.
Sales contracts are evaluated as consensual contracts, which means that they become concrete and with
effects of the law when the parties have reached a mutual agreement on the subject matter and price. Article 1278 of the Civil Code stresses that sales contracts are legitimately suitable regardless of form (written form is not mandatory). But, nevertheless, every transaction or real estate contract is stipulated in this form, in order to avoid future problems. To register a change in
property in the Register of real estate, the contract of sale must be evidenced in an act of public notary.
And taxation?
A transfer contract normally gives rise to subsequent tax derivations from the seller's side:
- public value added tax, levied on the increase in the value of the land continuing the ownership of the property through concrete criteria and is calculated on the basis of the value of the cadastral graph,
- Capital gains tax. If the seller is not resident in Spain, the buyer must block 3% of the purchase price and deposit it immediately with the Spanish tax authorities;
- income tax or corporation tax, as the case may be, on probable gains from the sale, both for residents and non-residents.

Read also

Luxury and modernity: wanting a home in the paradise of the Bahamas

Short holidays in the United States. The top 3 Americans.

Montenegro: the real estate market continues to grow

Real estate taxation in Spain: useful tips to make sure you're not wrong

Belgium: an investor's paradise

The quality of life among the best in the world: Vancouver

Israel and construction: new opportunities

 

Related Insights

  •  
    Real estate taxation in Spain: useful tips to make sure you're not wrong

      Real estate taxation in Spain: useful tips to make sure you're not wrong Spain continues to experience a period of strong growth and commercial expansion, which began in 2014, causing great interest in potential investors. Also at the real estate level has been recorded this situation of ...

  •  
    The great recovery of foreign real estate investments in Spain

    The great recovery of foreign real estate investments in Spain The number of overseas investments is back to the level of 2008   The number of foreign real estate investments in Spain has increased by 32.8% until June 2011, in comparison with the same period of 2010, according to the datas s...

Real Estate Listings

Cod. 39754

For sale 1 Bedroom, Spain, Alicante, La Mata, .

94,325.40USD
For sale
1 Bedroom

45 m²
www.horvatingatlanok.com ID:SH-300 Spain, Alicante, La Mata For sale this 45 m2 1 room +1 bathroom with sea view .First row to the sea. ...
Cod. 39744

For sale 2 Bedrooms, Spain, Alicante, Calle Pedro Garcia Bañon, .

249,366.00USD
For sale
2 Bedrooms

135 m²
www.horvatingatlanok.com ID.N-104 Residential Novomar 3 comprises of 4 modern 2 bedroom 2 bathroom villas with private gardens and swimming pool...
Cod. 39718

For sale House, Spain, Alicante, Lomas de Cabo Roig, .

248,281.80USD
For sale
House

81 m²
www.horvatingatlanok.com ID:R-1803 beautiful, virtually brand new terraced house in Lomas de Cabo Roigon. Fully furnished with lots of extras. Ref...
Cod. 39712

For sale House, Spain, Alicante, Los Altos, .

254,787.00USD
For sale
House

105 m²
www.horvatingatlanok.com ID:R-1631 Detached luxury villa for sale in Los Altos. There are two bedrooms (originally three), a living room, a large ...
Cod. 39700

For sale Villa, Spain, Murcia, Balsicas, calle mayor, 36 (Roldan)

536,679.00USD
For sale
Villa

2900 m²
Villa for sale with an area of 2900m2, with pool, outdoor kitchen, diverse gardens, basement, attic, living room, 5 bedrooms, 4 bathrooms, kitchen, di...
Cod. 39646

For sale Villa, Spain, Alicante, Moraira, Calle Laurel 1b

324,717.90USD
For sale
Villa

180 m²
This lovely villa with sea vieuws is located in el Pinar de L`Advocat in Moraira. The consists of 2 levels with 3 bedrooms and 2 bathrooms. Air-condit...
www.horvatingatlanok.com ID:TH-73 For sale a renovated apartment in Costa del Silencio, in the residential area of Chaparral. 56 sqm, living room,...
www.horvatingatlanok.com ID:TH-75 OFFER !!!! Last flats !!!!! Bungalows for sale in Golf del Sur (Sand Club Complex). 1 or 2 bedrooms, 1 bathroom,...
Cod. 39634

For sale 2 Bedrooms, Spain, Alicante, Playa Flamenca, .

147,451.20USD
For sale
2 Bedrooms

62 m²
www.horvatingatlanok.com Spain, Alicante, Playa Flamenca R-1619 Nice two-storey house in popular Playa Flamenco with 2 bedrooms, bathroom, fully...
Cod. 39631

For sale 2 Bedrooms, Spain, Tenerife Islas Canarias, Golf del Sur, .

118,177.80USD
For sale
2 Bedrooms

50 m²
www.horvatingatlanok.com ID:TH-76 3 apartments for sale in one or separately. Golf del Sur, some 100 meters from the ocean. Super small town, main...
2005-2020 REALIGRO REAL ESTATE LTD. All Rights Reserved - VAT Nr: 893969932
Neikos Digital Agency
  1. Preferences

    For a better use of Realigro website, set your preferences for language, currency, square meters or sq ft.

    Set now Don't show again
BB