Property Sales Taxin Valencia

(Source AEAT)

Property Sales Tax Payable in Spain

All new properties in Spain are subject to IVA (equivalent to

VAT in the UK & Ireland) whereas secondhand properties are

subject to ITP (Impuesto de Transmisiones Patrimoniales).

IVA is set by the State government and ITP is set by the

regional government.

2

Property Sales Tax Payable in Spain

The Spanish government announced on 19/08/2011 that the

IVA rate would be reduced to 4%, down from the standard 8%,

in order to promote the sale of vacant new properties in Spain.

This specially reduced rate is valid until 01/01/2013 when it will

change to 10%.

3

4

Property Taxes Payable in Valencia

Spanish property law in the Valencia region, specifically Article

16 of Law 11/2000 sets out the rate of tax payable on the

transfer of secondhand property and the creation of rights over

the property (except for mortgages) as being 7% of the value

of the property.

5

Where the property being purchased is a property subsidised

by the government then it is subject to a tax rate of 4% if the

property is going to constitute the main home of the

purchaser Law 13/1997

Protected or Social Housing

6

Article 13 of Law 13/1997 as amended by Article 32 of Law

14/2007 provides that a property acquired by a legally

defined 'large' family for the purpose of being their main

home is subject to a special tax rate of 4% where:

- the property is purchased within 2 years of the family

achieving the status of being 'large'

Initiatives for Large Families

7

- the property formerly used as a family home must be sold

within the same period of time

- the new property must be at least 10% larger in area than

the previous home

- the total taxable income of the family unit may not exceed

€44,074

Initiatives for Large Families

8

Purchase of Housing by the Disabled

Law 13/1997 further provides that the acquisition of a property

by a person suffering a physical or sensory disability to a

degree greater than 65% or a mental disability greater than

33% shall attract a rate of tax of 4% for that part of the

property which they acquire.

For more information or assistance with legal or tax

matters from our network of local English-speaking

property lawyers in the Valencia Region, go to:

9

Property Lawyers in the Valencia Region