Interview to Yolanda Lobao, Partner at Auren, published by the Lucas Fox blog on the 17th of December 2015.<\/p>\n
Property lawyer Yolanda Lobao explains the local rules and regulation, as well as the tax situation for Buy-to-let properties in Spain.<\/p>\n
The transfer of properties when they are second-hand will normally attract Transfer Tax (ITP) at the applicable rate depending on the region in Spain where the property is located (currently the 10% in Catalunya). The tax applicable could be VAT (4%, 10% or 21% as applicable) and AJD (Stamp Duty on Legal Documents at the rate of 1,5%) in case of newly built properties and land. The tax has to be paid by the Purchaser.<\/p>\n
The tax rates need to be checked at the moment of conducting the transaction due to the tax laws permanent changes.<\/p>\n
Once the property is purchased, there would be taxes associated to the ownership of the property; Non-Residents Income Tax or Residents Income Tax and Wealth Tax payable by Tax Residents and Non-Residents in Spain, with an exemption which varies from 500.000.-\u20ac to 800.000.-\u20ac. Both taxes are due to be paid once a year.<\/p>\n