Who pays ITP in Spain?

This tax must be paid by the buyer within the next 30 days after the purchase of the property.

What is the ITP percentage in Andalusia since May 2021?

The ITP is now 7%

What is the stamp duty rate in Spain?

Stamp duty The general rate is between 0.75% and 1.5%, depending on the region of Spain and the taxable event. Stamp duty is also levied on certain commercial (e.g. bills of exchange, promissory notes), court, and administrative documents.

What is AJD tax Spain?

One of the taxes that you are due to pay in Spain is the infamous mortgage tax or AJD (Actos Juridicos Documentados) tax. This tax is officially stated as between 1-1.5% depending on the region you are in. This takes the effective cost of the tax (in this made up but realistic example) to 1.92% of the mortgage amount.

How much is ITP?

The general (national) rule of ITP is 7%, but many of the autonomous regions have applied higher local rates. The rate you pay depends upon the autonomous region where you buy.

What is ITP tax?

ITP (Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos Documentales), in English Property Transfer Tax and Documented Legal Acts, is an indirect tax which is applied to onerous transfers of property, in other words operations of exchange of wealth or assets between living persons (such as the purchase or …

How much should I offer on a house in Spain?

Your starting offer will depend upon many factors such as the state of the market, what you know of the vendor, and the price and characteristics of the property in question. An offer of 20% below the asking price is a very different thing when the asking price is 200,000 Euros to when it is 1 million Euros.

How much does it cost to have your taxes done at ITP?

Fees start at $150 for an experienced tax professional to safely and securely maximise your tax return. All of our offices can provide a free, obligation-free quote. For online assisted tax return preparation, we will contact you with a quote by email, phone or fax after you fill out the online form.

Do you have to pay ITP when buying a property in Spain?

When you first start looking to buy a property in Spain the term “ITP” might pop out. But, What is ITP? Second hand properties are not charged with VAT (IVA in Spanish), however these resales come across with a tax called ITP “Impuesto sobre Transmisiones Patrimoniales”, which is a transfer Tax set at autonomous community level.

What is the property tax rate in Spain?

The rate of Spain’s equivalent of Stamp Duty Land Tax currently varies between 6%-11% depending on where in Spain the property is located. If you’re buying a property in Alicante for example, which is in the Valencia region of Spain you can expect to pay ITP at a rate at 10%, whereas buying in Madrid the purchase tax is currently set at 6%.

What’s the general rate of transfer tax in Spain?

The Transfer Tax rate is ceded to the autonomous regions, who can choose to apply the general rate, or their own rate. The general (national) rule of ITP is 7%, but many of the autonomous regions have applied higher local rates. The rate you pay depends upon the autonomous region where you buy.

When do you pay ITP on a second transfer?

ITP applies if the property is deemed to be a second or posterior transfer (i.e. not the first time a newly built home is bought), and is paid by the buyer. If any deposit is paid before completion of the sale it is not subject to ITP pro rata. However the full amount of ITP still has to be paid upon completion.