Residents and non-residents who are buying and selling a home in Spain have to pay additional taxes.

The majority of Spanish residents have concerns about taxes they'll be expected to pay when purchasing or selling a home. This article explains the tax on property ownership in a simple way by drawing on tax advisors and economists José Miguel Golpe Saavedra and Mario Borio. The taxes that must be paid to the Spanish State, Autonomous Communities, or Municipalities will be one of the many factors that we'll take into consideration. Qatar sale

Any natural person who purchases a home in Spain must pay the following taxes:

If you buy a newly built home in Spain, you must pay VAT. A general rule of thumb is that when a home is sold directly by the developer, it has been newly built. 10% of the sales price, which appears in the title deed, will be the VAT percentage.

The Property Transfer Tax is levied on properties that do not qualify for VAT because these types of properties are only purchased by those who already own property, or when someone other than the developer sells the property. The autonomous community in which the property is located must pay the ITP. Autonomous Communities and taxpayers have a wide range of options when determining the percentage to be applied to the final price.

In Spain, all property owners will have to pay these taxes each year:

The Property Tax is called the IBI (Tax on Real Estate Assets). The tax is payable to the town hall where the property is located. Cadastral value is the percentage of taxes owed depending on where the property is located and personal situation of the property owner.

IRPF (Personal Income Tax): For those individuals who are residents in Spain for tax purposes, who own property here, they are legally required to declare their IRPF income in their tax returns.

If you reside there regularly, you don't have to pay any taxes.

A small percentage of the property value is included in income if the property is unoccupied and the taxpayer does not own a primary residence. This income is subject to adjustment, based on the cadastral value of the property and the time since the last time the cadastral value was updated.

Income from a rental property, including both what is received and what is paid out, must be taxed based on the capital gains yield from real estate.

You will have to determine whether you have made a profit or loss in equity if you decide to sell your home. This is your habitual residence, and you will be able to claim the tax exemption for reinvesting money in a main residence if you have made a profit (provided that you meet the legally established requirements).

Resident income tax is different from non-resident income tax. Non-residents who own property in Spain must pay their taxes if they own the property themselves or employ someone who is a resident in Spain to handle their personal taxes. Income earned from renting out one's property in Spain is subject to a 19% or 24% (depending on the location) surcharge for non-Spanish tax residents. Residents of the European Union (EU), Iceland, or Norway may apply a deduction for expenses related to the property.

Residents and non-residents alike should be aware of the one important tax in Spain that could impact property sales:

When a property is sold, there is an obligation to pay the capital gains tax (known as "Plusvalía") for the increase in the property's value. It is a tax that will be collected from the property's seller and paid to the local authority. Spain's present tax policies are highly controversial, as owners have reported incurring losses from the sale of their property and still being charged the tax.