Property Sales Tax in Murcia

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.

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 31/12/2011 when it will

revert to 8%.

Property Sales Tax in Murcia

The standard rate of tax payable in Murcia on the transfer of

second-hand property and the creation of rights over the

property (except for mortgages) is 7% of the value of the

property – Article 5 Decreto Legislativo 1/2010.

Incentives for legally classified 'large families'

A special lower rate of 4% applies to property transfers in which the

purchasers are legally classified as pertaining to a 'large family'

where the following criteria are met:

- The property shall form the main, habitual home of the family.

- The fact that the property is to be used as the family home should

be expressed in the deeds of purchase

Incentives for legally classified 'large families'

- The total income of the persons who will live in the property (less

individual and family deductions) shall not exceed €44,000 plus

€6,000 additionally for each child over the statutory minimum

number for classification as a 'large family'

Incentives for legally classified 'large families'

Incentives for Home Purchase by Young People

Property purchases by young people under the age of 35 shall attract

a lower rate of 3% in the following circumstances:

- The property must form the habitual residence of the purchaser.

The term 'habitual residence' is as per the legal definition in income

tax legislation.

- The value of the property must not exceed €150,000

Incentives for Home Purchase by Young People

- The total income of the purchaser (less personal and family

deductions) must not exceed €26,620

Incentives for Home Purchase by Young People

Lower rate of 4% for Public Housing

- A lower rate of 4% stamp duty is payable on the purchase of any

property that is classified as 'social housing'.

If you would be interested in a free and comprehensive

guide that will help you to avoid the typical pitfalls the

foreign buyers of property fall into as well as dealing

with issues such as...

Guide to Dealing with Property in Spain

To find out how to deal with such issues as...

Which legal checks on a property

are vital to avoid any problems

The step-by-step process

of buying a property in Spain

As well as...

Typical ploys to watch out for

to avoid being defrauded.

Property taxes you pay and

those you don't!

And much more...

Download the myAdvocate Spain guide to Dealing with Property in Spain by clicking on:

Secrets to Dealing with Property in Spain

Or for further information on the property purchase process specifically go to:

Spanish Property Lawyers

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