Transfer Tax

Hi,

      Can someone tell me what transfer tax is. and why we have to pay it on a new property?

                                  Thanks for all advice.

 Hi, the Region of Murcia charges 7% land transfer tax / ITP (impuesto sobre tansmisiones patrimoniales) for all propertieswhich are not bought directly from developer. On CDA most properties sold are by banks so even the place is new it is already second transmission you are due for that tax. The reason you pay tax is the law in Spain which says so, sure you have similar taxes in the UK. Hope this helps, Rupert

The 7% Transfer Tax applies on Resales and is the equivalent of the Stanp Duty we pay in the UK (which varies between 0% and 7% currently depending on price of the property).