A question about IVA for an estate agent

Hi Ef,

You only pay 7% IVA on a new property.

Unfortunately you will also pay 7% on a resale ,the only difference is the terminology,on a resale it is transmission or transfer tax.

So whatever you choose to buy the government win all hands down.

Hope this helps

Georgia

I knew that "you only pay 7% IVA on a new property.Unfortunately you will also pay 7% on a resale, the only difference is the terminology, on a resale it is transmission or transfer tax."

But I wanted Georgia to tell you, ef !  

How's you, Georgia ?

Hi Morerosado,

Really, really, really busy,there seems to be a return to confidence at the moment and property is starting to move again.

Last week and continuing this week it's the festival in Algorfa.

Skipped the bullfight on Staurday,not my thing,did the beer and sardine breakfast on sunday and going to the baby bull thingy tonight,not sure what exactly that entails but i am assured that there is no cruelty involved

We have the circus in Guardamar soon so spoilt for choice over what to do in the evenings at the minute.

Still damnnnnnnnnn hot!

Georgia x

dunno,she goes abck to vega baja on monday for x-ray to see how long the cast has to stay on for?

Hopefrully it won't be too long,she has not been in the best of moods and her arm is sweating like a virgin on prom night!

It has also limited her pasta making skills!

She goes to the hospital the same day the next additions arrive,the father in law and my two nieces.

The house is gonna start bulging at the seems soon.

Georgia

Thanks Patrick, what constitutes a brand new property for this 1%? ie if the original developer sells an offplan to an intermediary who then sells it to me still offplan, who pays the 1%?

If the investor has completed on the property then he has paid the 1% Title Deed Stamp Duty. If he simply sells on his contract the 1% is down to the first registered owner.

Have care though if you are buying the contract from the investor as there is a liability in the eyes of the Tax office for 7% transfer tax on the value of the contract that is sold to you and also the 7% IVA that results from the purchase from the developer. This used to be simply by passed by the developer tearing up the contract but Hacienda have introduced controls to ensure that all necessary taxes should be met so ensure you get clarification from your lawyer as to exactly what is happening.

Ok, thanks, that sounds complex. Never buying off plan in Spain again though, so next project will most defintely be a resale.

P.S. Why do you answer my EOS questions and not my direct emails?!!!!!!!!!!!!!