Skatter och utgifter att köpa en fastighet på Mallorca eller någon annanstans i SPANIEN

When you buy a property in Mallorca or elsewhere in Spain first you have to pay TAXES

NEW PROPERTY: If your buy a new property the vendor will add 10% IVA (VAT) to the price. This VAT will be paid by you on the day of purchase directly to the vendor, who will deposit it for the tax authorities.

You will also have to pay an extra 1.2% tax called “Actos Jurídicos Documentados” (Stamp Duty). This tax must be paid during the 30-day period after signing the purchase deed by you or your representative using the model 600.

So, for a €300.000 NEW PROPERTY you end up paying €337.200.

SECOND-HAND PROPERTY: If you buy a resale property you will have to pay all the taxes the day you sign the deed, and from that moment you have 30 days to pay the Transmission Tax, (“ITP Impuesto Transmisiones Patrimoniales”). This tax is progressive, so it will increase proportionally to the value of the property as follows.

-From €0 to €400.000…………………8%
-From €400.000 to €600.000……….9%
-From €600.000 to €1.000.000…..10%
-Over €1.000.000………………………11%
..


.e.g.1. You buy a property for €185.000.
-From €0 to €400.000 — 8% of €150.000, you pay €14.800.
So, the ITP tax for purchasing a €185.000 property is €14.800.
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e.g. 2. You buy a property for €550.000.
-From €0 to €400.000 — 8% of €400.000, you pay €32.000.
-From €400.000 to €600.000 — 9% of €150.000, you pay €13.500.
So, the ITP tax for purchasing a €550.000 property is €46.500.
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e.g. 3. You buy a property for €2.350.000.
-From €0 to €400.000 — 8% of €400.000, you pay €32.000.
-From €400.000 to €600.000 — 9% of €200.000, you pay €18.000.
-From €600.000 to €1.000.000 –10% of €400.000, you pay €40.000.
-Over €1.000.000 — 11% of €1.350.000, you pay €148.500.
So, the ITP tax for purchasing a €2.350.000 property is €238.500.


COSTS

As well as the taxes mentioned above, when you buy a property you have to pay costs. Some are mandatory and others are optional.

Mandatory:

Notary fees: The purchaser has to pay the notary deed.

Property Registry Fee: your property must be entered in your name with the local Property Registry

Lawyer fees: These go from 1% of the purchase price if your lawyer is only advising on the purchase, up to 2% if your lawyer is helping you get a mortgage or signing the deed on your behalf using Power of Attorney.

Optionals: Hiring an architect or surveying the property you are going to buy, as well as getting a valuation. If you are going to apply for a mortgage then a valuation is mandatory.

Mortgage costs: If you get a mortgage to buy the property, this mortgage will also be signed in front of a Notary. You will also have to pay the cost of this notary deed. In addition, the mortgage also has to be entered in the property registry; to do this you have to pay the property’s Registry tax.

Once you have signed the mortgage in front of the Notary, you have one month to pay an extra 1.2% of the total amount of the mortgage as “Actos Jurídicos Documentados” (Stamp Duty). Usually the bank will pay this on your behalf.

In brief, the costs and expenses of buying a property are approximately an extra 10 or 13%.


OTHER TAXES

As well as the taxes and expenses related to the purchase, once you have become a property owner in Mallorca, or elsewhere in Spain, you will have to pay other taxes annually.

Annual taxes and declarations arising from your property ownership in Mallorca or elsewhere in Spain

.-IBI (Land Tax) The “Impuesto sobre Bienes Inmuebles” is a tax you have to pay every year. It goes from €100.00 for a small apartment up to a few thousand for a large detached house. Before signing any contract you should ask the vendor to show you the last annual receipt in order to know how much you have to pay for your new property.

– National income tax for NON-RESIDENTS in Spain only(“Impuesto sobre la imputacion de rentas de inmuebles a no residentes”):  If you earn any income from your property, e.g. if you rent out your apartment, you will have to pay tax on it. Even if you do not earn any income you still have to pay this tax. It is between 1.1 to 2% of the cadastral value of your property.

– Garbage collection: The Town Hall in your municipality will charge you a garbage collection tax annually. 

– Waste incinerator tax. This tax is also paid annually.


See Also: REGLER OM köpa en fastighet i MALLORCA, eller någon annanstans i SPANIEN .


Don’t hesitate to contact me for free information.
Toni Marqués. Real Estate Solicitor in Mallorca.
toni@palmalawyers.com….WhatsApp: (+34)678216706


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