The regional government of Andalucia has just approved a Decree removing Wealth tax
which was payable by those individuals with assets of 700.000€ (non-residents
for Spanish assets) or 1.000.000€ for residents on their worldwide estate. This would be attractive to those who are considering buying Andalucian property and
possibly taking up residency with one of the Visa options in Spain. In January 2022 the regional government extended the reduced 7% flat rate of property
transmission tax – ITP – payable by the buyer. This, together with the favourable inheritance tax rates for families in Andalucia,
makes this area of Spain a good place to buy property.In other regions of Spain the tax on purchasing property does vary. For example,
at present Murcia has a flat rate of property transmission tax of 10% payable by
the buyer. Some areas such as Majorca have varying rates depending on value.
For new constructions you pay Iva at 10% at current levels. It is 21% for
commercial property and plots of land.It is worth noting that in the Canary Islands – IGIC – the equivalent of Iva – is
charged at only 7%. Vera Liprandi, partner at our Tenerife Office, is dealing
with resales as well as purchases of newly constructed properties and can
advise on all tax levels and obligations for buyers and sellers. There are also
some very good tax incentives so it is worth enquiring about your individual
case.As well as tax savings, the better climate in Andalucia and the Canaries means
there are also energy cost savings. The Spanish property market is now strongly regulated and property rights are
protected by Land Registration and the Notarial system. Although a Deed is
signed before a Notary it is still very important to have an independent
conveyancing lawyer to check all aspects of a purchase including land
registration, licensing, taxation aspects and contracts.For more information contact us on [email protected]or call for a consultation with one of our property specialists.For our Tenerife office contact our Tenerife partner Vera Liprandi on +34 922 719520 or email on [email protected]
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The regional government of Andalucia has just approved a Decree removing Wealth tax
which was payable by those individuals with assets of 700.000€ (non-residents
for Spanish assets) or 1.000.000€ for residents on their worldwide estate.
This would be attractive to those who are considering buying Andalucian property and
possibly taking up residency with one of the Visa options in Spain. In January 2022 the regional government extended the reduced 7% flat rate of property
transmission tax – ITP – payable by the buyer.
This, together with the favourable inheritance tax rates for families in Andalucia,
makes this area of Spain a good place to buy property.
In other regions of Spain the tax on purchasing property does vary. For example,
at present Murcia has a flat rate of property transmission tax of 10% payable by
the buyer. Some areas such as Majorca have varying rates depending on value.
For new constructions you pay Iva at 10% at current levels. It is 21% for
commercial property and plots of land.
It is worth noting that in the Canary Islands – IGIC – the equivalent of Iva – is
charged at only 7%. Vera Liprandi, partner at our Tenerife Office, is dealing
with resales as well as purchases of newly constructed properties and can
advise on all tax levels and obligations for buyers and sellers. There are also
some very good tax incentives so it is worth enquiring about your individual
case.
As well as tax savings, the better climate in Andalucia and the Canaries means
there are also energy cost savings.
The Spanish property market is now strongly regulated and property rights are
protected by Land Registration and the Notarial system. Although a Deed is
signed before a Notary it is still very important to have an independent
conveyancing lawyer to check all aspects of a purchase including land
registration, licensing, taxation aspects and contracts.
For more information contact us on [email protected]
or call for a consultation with one of our property specialists.
For our Tenerife office contact our Tenerife partner Vera Liprandi on +34 922 719
520 or email on [email protected]