Property Transfer and Stamp Duty Tax
Transactions subject to property transfer tax
- Purchase of new properties do not pay Transfer tax, but V.A.T.
- Purchase (or transfer) tax, must be paid on purchase of any type of second hand Real Estate
Tax rate to be paid, depends on value of property:
If you buy a second hand property and declare its value much lower than the approximate market value, the Spanish Tax inspectors could feel that the purchasing price is too low and you may be applied heavy penalties. Your Lawyer can help you in this matter by asking the tax office what is the market value of the property that you intend to buy.
When is stamp duty due?
This tax will be paid upon signature of some public deeds, of notarial documents, registry office documents…
The rate applicable differs from one case to another.
This tax shall be paid at the Treasury office (Delegación de Hacienda) of the corresponding Community within 30 working days after signature of the deed or the contract.
It is suggested that all technical and legal matters pertaining to taxes be referred to a Spanish Solicitor for advice, guidance and execution.