property taxes

Hi

Thankyou to you all for the advise on the NIE now i ave sorted that I need abit more advice.  I am purchasing a property from a friend of ours private sale so funding it from the UK so I dont need a morgage in spain however when Im looking at taxes it says 7-10% Property transfer tax......... How do I know if it 7 or 10 % thats a big different lol.  The other taxes see to vary as well but they arnt as bad as this huge one . Any advise would be appreciated.

Thank you in advance

Spain is not one big country (well, it is when you look on a map) but 17 different self-governing regions with a federal government in Madrid. Each of these regions set their own rules for things like property taxes, inheritance tax and so on. Some regions have 7% tax for second hand properties with a higher 10% for new ones whilst other regions (like Valencia) have a blanket 10% tax on all properties.

Some regions also charge higher taxes on more expensive properties. 

You would have to say what region you are looking at for us to answer and whether it is new or resale.

Hi

aaaaa thank you Il look into it now . Thankyou for that honestly you try to goole things and never get a straight answer lol.

Thanks

Jane

Its Algorfa region.

thanks

So, Valencia region, therefore 10% transfer tax. On top of that you will have notary fees, land registry fees and legal fees - I suggest you find yourself a lawyer, because if anything goes wrong, you may end up buying from an ex-friend, which would be a shame! 

Take heed of mariedav's information about Spanish autonomous regions. When asking for other help or guidance in the future, you should always let the forum know where in Spain you're referring to, as many things vary regionally, from taxes to healthcare provision - and even language! 

"How do I know if it 7 or 10 % thats a big different lol"

An even bigger difference if the administration decides that the property is worth more than you are paying for it.

We bought a flat at 70kEuros. Valencia decided it was worth 114kE and charged us 10% of that!

Be careful

And don't forget, if it's a second home (i.e. you're not going to become resident and live there) you'll be paying non-resident income tax whether or not it's producing an income, and if you decide to sell again, you'll pay plus valia tax to the town hall on a perceived increase in value of the land, and if you have actually made a capital gain, tax on that too - and once the UK is no longer part of the EU, some or all of those those taxes will almost certainly be more than they are now because....well, because if Spain can screw foreigners, she does. And you may want to look into inheritance tax - the list goes on. Maybe you should ask your friends why they want to sell!

 if it's a second home (i.e. you're not going to become resident and live there) you'll be paying non-resident income tax whether or not it's producing an income

Just to clarify that:  If you let it and  declare the income I believe you are except from the imputed tax (second home tax) for the period it is let.

And just in passing:   If you do become resident, if you have another property of any type (garage space even)  anywhere in  the world, that includes Spain,  you will have to pay that imputed tax on that/those properties.