Legal & Finance Assistance
Page 4
PLUSVALIA MUNICIPAL:
This is a municipal tax that is paid every time a property changes hand. It is a bit complicated to calculate. Basically it depends on the property's tax value and how long the property has been owned by the seller, it usually is between 300.00€ and 1.000€
TRANSFER TAX OR VAT (IVA):
Depending on the parties juridical status and the type of property, there is 6% transfer tax or 7-16 % VAT (IVA).
Normally this means; first hand homes, you pay 7% VAT plus 0,5% Document tax. Second hand homes you pay 6% Transfer tax. Villa plots from the promoter, you pay 16% VAT plus 0,5 % Document tax. Now you have nearly reached the end of all the purchasing property procedures and after you will have insured your new home and you will have made a Spanish Will relating to the beneficial ownership of the property, everything will be finally completed.
After such a hard piece of work you more than deserve to 'chill out' under the Palm trees of your new garden, having your first cup of tea together with your family and friends.
TAX LIABILITIES:
Every owner of a property in Spain will of course have some responsibilities to the Tax Authorities (HACIENDA).
NIE TAX IDENTIFICATION NUMBER:
Every resident employed or self-employed as well as every proud owner of a property in Spain has got a Spanish Tax Identification Number (NUMERO DE IDENTIFICACIÓN DE EXTRANJERO) or NIE for short.
That number identifies you to the Spanish HACIENDA (Tax Authorities) and all Spaniards have that too.
Applications are made (as with all other formalities your Passport and photocopy will be necessary) at the local police station of the POLICIA NACIONAL.
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