Have you paid 8% IVA ?

Read somewhere NO iva was added on new build properties only on resale properties, can anybody confirm this if you have bought a NEW property in the last few months.CHEERS

Hi,

This is how it works:

- NEW BUILD PROPERTIES (that is, properties that haven't been sold since they were built, even though they were built in 2009, as it happens in Mar Menor Golf Resort): You have to pay 10% VAT and 2% Stamp Duty Tax. That means that, to whatever the price advertised is, you have to add 12% for taxes.

- RESALE PROPERTIES (sold by individuals or by banks, even though banks have repossessed properties from the builder and they were never officially sold): You DON'T pay VAT, but you pay 8% Property Transfer Tax.

Hope it helps.

Francisco

I dont understand how they are working this IVA on new property, i a had a agent tell me the other day, say because they are bank owned property you have to pay IVA even tho they have never been sold/lived in ?.

The problem is that the bank respossessions have legally been sold and their title has been transferred, at The Notary, from the original owners that were the developer, back to the bank

When sold these properties are therefore classed at 2nd hand, resales, and therefore IVA is due, the movement fo the property is a sale

I know this because I have sold many of these properties

Thanks for that Roy, is there any properties around that are not having to pay the IVA,direct from builder etc

All properties sold directly from the builder are subject to 10% VAT.