Resale Property - Private Sale

Transfer Tax (Impuesto sobre Transmisiones Patrimoniales – ITP) This tax is levied if the property is regarded as second hand. This Transfer Tax is 6%/7% of the purchase price, depending on the region where the property is located. The buyer has to pay this tax. Deposits paid before the sale is complete are not subject to the transfer tax. The full amount of the tax has to be paid upon completion.

New Build -  Developer Property

VAT & Stamp Duty (IVA & Actos Jurídicos Documentados) This tax is charged if the property is brand new and the seller is the developer. The VAT (known as IVA) is 7% on the price a built residential property and 16% on plots of land or commercial premises. The Stamp duty is 1% of the purchase price.  VAT and Stamp Duty are paid by the purchaser and if a deposit is paid before completion it will be subject to VAT as soon as it is paid. Transfer tax doesn´t apply when dealing with a new property.

I will cover some of the other costs on my next post.