taxes


Just one month remaining to save VAT on a property purchase in Spain

With just one month remaining before the VAT on the purchase of a New property in Spain increases from the current 4% to 10% on 1st January 2013, there is still time to benefit and save money.

In order to save paying this increase you must complete the purchase of a new property by signing the title deed before a notary prior to 31st December 2012.

What is a new property?

A new property is one that has never been registered to a first time buyer, i.e. that from a developer, a builder or even a re-possession from a bank as long as it has never been registered for the first time to a purchaser.

Despite many things taking time to accomplish in Spain, buying a property can in fact be extremely quick – just 7 days! Once having decided to purchase a New property, all paperwork can be checked by a lawyer, searches made at the land register, and all necessary appointments made at the notary all within 1 week. As long as the vendor and purchaser (or their notarised legal representatives) and funds to purchase are available, the property can be signed before a Notary within this time frame.

So if you’re still pondering and want to save 6% on your purchase costs, there’s still time to do so.

Here are some examples of New property in and around Nerja where you can save the 6% VAT before the end of the year:

2 Bedroom, 2 bathroom luxury built apartments in Torrox Costa with private underground parking spaces and lock-up storage room and 2 communal swimming pool complexes from just 195.000 Euros.

RELATED TOPICS:

Guide to purchasing a property in Spain.

New rates of VAT in Spain to take effect as from 1st September 2012.

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The Banker

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Transfer Tax & Stamp Duty 2012

The Andalusia regional government has introduced an increase on the Property Transfer Tax (ITP) and Stamp Duty (AJD), whish will be applied from January 1st 2012.

 

Transfer Tax for resale property purchases will now be calculated according to the following rates:

  • Any amount up to 400.000€ – 8% Transfer Tax
  • Any amount between 400.000€ and 700.000€ – 9% Transfer Tax
  • Any amount in excess of 700.000€ – 10% Transfer Tax

Here is an example: A property valued at 750.000€ will be subject to a tax of 64.000€, which is based on the following calculation:

  • 8% up to 400.000€ – 32.000€
  • 9% between 400.000€ and 700.000€ – 27.000€
  • 10% over 700.000€ – 5.000€

Transfer Tax applicable for a private parking space, when purchased as an independent property, will be based on the following rates:

  • Any amount up to 30.000€ – 8% Transfer Tax
  • Any amount between 30.000€ and 50.000€ – 9% Transfer Tax
  • Any amount in excess of 50.000€ – 10% Transfer Tax

Please note that the Property Transfer Tax is not based on the property purchase price, but on the minimum fiscal value, which is regulated by the Regional Government. Should you have any query about this value, please do not hesitate to contact us.

Stamp Duty has also been increased from 1% to 1.2% and applies to brand new property purchases and mortgages, where Transfer Tax does not apply.

These taxes apply only for properties located within the region of Andalusia.

Source: Transfer Tax & Stamp Duty 2012 in Andalucia, Spain | Costa Consulting Bureau.

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Income tax, IBI and motorway tolls go up but electricity, IVA and phone line rental frozen

Income tax, IBI and motorway tolls go up but electricity, IVA and phone line rental frozen

THE start of 2012 will see income tax increase and pensions rise by one per cent, but electricity, gas bottles and telephone standing charges will be frozen.

Young people between 22 and 30 years of age can no longer claim the 210-euro benefit for buying a first home, but those currently in receipt of it will continue to be able to claim.

The tax reduction on a first home will be reintroduced, and IVA will not go up, but income tax will rise.

Civil servants’ salaries will be frozen, and mains gas will increase in price.

Bottled gas remains at 15.09 euros and landline standing charges via Telefónica will stay at 13.97 euros.

Toll fees on motorways will increase by up to 3.2 per cent.

The percentage charged on land registry values for IBI, or asset tax, will rise, and the cost of postage stamps will increase by 2.86 per cent.

Rail travel will go up, but the exact figure has not been calculated so far.

Source: Income tax, IBI and motorway tolls go up but electricity, IVA and phone line rental frozen.

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