Hi Jima,
I’m sorry I still don’t understand? Have you bought and paid your 30%
Contract a property in Novo Arcos? I have and have only been liable to pay 7% I.V.A. (Spanish V.A.T) on this payment which is not TAX.
I paid €5000 Euros to Sunset to reserve my property then 30% for Contract less my reservation and 7% I.V.A. My understanding is that any property bought and any payments made being stage payments are all subject to 7% I.V.A. on Spanish property regardless of whom you buy from the developer, builder or private seller. Please see below info from: http://www.spanishpropertyinsight.com/off-plan-property-7.htm
Taxes and other administrative costs when buying off plan in Spain When you buy a residential property off plan from a developer you pay
Exactly the same taxes as you would were you to buy a finished property from a developer.
You will pay VAT of 7% on top of the purchase price. Any stage payments you make will include VAT. When you sign the public deeds before a Notary you will also have to pay 1% of the property price (excluding VAT) in stamp duty.
Finally, as is the case when you buy any property in Spain, you will have to pay the Notary fee and the land registry fee. These vary according to the price of the property and the number of clauses in the deeds. Combined they shouldn't amount to more than 1% of the price of the property.
So please can you let me know your interpretation of this Transmission Tax as my lawyer or myself have never heard about this?
Thanks Andy