Taxes | Perez Santa Maria

Location and address

Avda. Albir, 2 - (Playa del Albir). 03581, L´Alfas del Pí, (Alicante)
Phone: +(34) 96 686 59 76
Mobile: +(34) 633 377 222
Fax: +(34) 96 686 58 13



Impact prosecutors, in the Sale of buildings Any kind of sales tax has implications that affect the buyer and seller. In the following paragraphs we will develop the various topics to be taken into consideration by its economic importance in any sales transaction.


At first, all transmission assets behaves for the buyer to pay a tax. At present the tax has a dual qualifier: The tax on capital transfers and value added tax (VAT). It apply one or another depending on the tax status of the seller. Overall we can say :

1º,- Sales of real estate that made businessman who is not (or whoever the owner is not spent on developer, builder or employer), are subject to tax on capital transfers

2º,- The sales made by businessmen and companies dedicated to the promotion, development, construction and rehabilitation of buildings and land that have referred to the consideration of solar, or urban land, and of course, housing and buildings, are are liable for VAT (Value Added Tax). In addition Scripture Service is subject to the payment of Stamp duty.

Each tax rate or both percent applies on a tax base, or on the price or value of the property subject recruitment. This set the parties to the document itself, but the Tax Administration, after their verification and regardless of what may have noted the contractors, what sets. The deadline for income tax is thirty days (no holidays), which begin to elapse from the day following the award of the contract (be it private or public).

The taxpayer, that is, who is obliged to satisfy the tax, is the buyer. Since the last reform of the tax system, the buyer should not expect to be the Tax Administration, which will turn the settlement, but must anticipate and enter the amount that corresponds with the so-called self.

They are subject to the payment of this tax all transmissions of estates in which the seller is an individual.

The contracts or scriptures Public Sales tax to 8% on the value of the property conveyed. The Tax Administration, has the power to revise the price that the parties have made it in Scripture.

Implementation of Value Added Tax (VAT)

They are only subject to VAT transmissions made by real estate entrepreneurs who are dedicated to the urbanization of land and promotion, construction or rehabilitation of buildings for sale, award or assignment by any title, but are conducted occasionally.

On the contrary are exempt from this tax and taxed by the Broadcast Capital (8%) the transfer of land that do not have the status of building and the second and subsequent deliveries of buildings.

The tax rate to varied over time and now the general is 16%, while the narrow, applying to housing (including garages and annexes to them) is 8%.

Significantly, the seller is the one required to pay and who should make entry into the State, but with the right to pass on, and thus collecting VAT from the buyer. Thus, the seller acts as a collector for the Administration.

Implementation of Stamp duty.

The deeds are in principle subject to the payment of Stamp duty. And we say in principle because the scripts that reflect the transfer of immovable property and subject to payment of tax on capital transfers, are not taxed by this tax. By contrast, the Scriptures subject to VAT are supplemented by the payment of tax documented legal acts.

Fortunately, this tax rate is low, as it is set at 1% of the value of the transaction.

The income tax (IRPF) and the property tax.

Other repercussions from the sale of immovable property.

The deeds are in principle subject to the payment of Stamp duty. And we say in principle because the scripts that reflect the transfer of immovable property and subject to payment of tax on capital transfers, are not taxed by this tax. By contrast, the Scriptures subject to VAT are supplemented by the payment of tax documented legal acts.

Fortunately, this tax rate is low, as it is set at 1% of the value of the transaction.

The income tax (IRPF) and the property tax.

Fiscal and legal obligation to abide by foreigners in Spain.

They are considered residents in Spain, all those individuals who remain on Spanish territory more than 183 days a year, or fix their permanent establishment in Spain (both natural and legal staff).
There are agreements between Spain and various countries to avoid double taxation, that is, pay taxes in two or more countries, even for those who earn income in several countries.
To be considered resident, is mandatory hold valid residence permit issued by the competent authority, through the police station.

Foreign Residents.

When a foreign resident, is involved in any sale transaction or any economic activity in Spain, has the same tax treatment, to be applied to any Spanish citizen. That is, if you treat a person who has sold his property, must pay the Municipal Gain, the municipality where the property is located and subsequently sold must carry out the corresponding Declaration of Income and Wealth, by the possible increase in the wealth that has experienced in the operation of buying and selling. This declaration of Income and Wealth, must take place the following year, made the purchase and sale transaction.

The increase in the wealth, applies to the properties, which have remained in the estate of the seller less than 11 years. In this case, applies generally the following rules:

1 - The increase in the wealth gained is the difference between the purchase price and the selling price of property (profit realized).
2 - This difference is taxed with a 11.11% a year, counting from the date of purchase until the sale, except for the last two years.
3 - The first increment 1.202,02 Euros, are exempt from paying taxes, and the rest is covered by 20% to calculate the fee to pay.

Foreign Non-resident.

Those non-resident foreigners in Spain, also must pay taxes, is an obligation of a real and objective in anything that takes into account the personal circumstances of the payor.
When a Non-Resident, sell their property in Spain, which is notarized after 31.12.1985, he must apply a 3% Withholding purchase price for joining the Public Treasury.
This retention must necessarily be applied, under Law 18/1991 of July 6 of income tax (IRPF). The buyer will retain 3% of the selling price of the property at the time of the signing of Scripture before the Public Notary authorizing, and have one extendible period of 30 working days to enter into the Treasury.
Esta retención está considerada como un pago a cuenta, por los impuestos que resulten a pagar, por el posible incremento patrimonial, aflorado en la transacción inmobiliaria.
After income of 3%, should notify the sale to the public finances through the Prosecutor Model 212. This statement should make the necessary calculations to get the possible increase in the wealth (the same procedure as for residents), but the difference is that the rate to apply on the increase in the wealth is no longer 20%, but 35% deducting course, the payment made to account for previously (3%).
(The 35% is the percentage tax applicable to profits or capital gains earned by non-residents in selling their property in Spain).

The payment of capital gains MUNICIPAL

Any transfer of immovable property for urban nature, involves the payment of tax Increase Value of Land, called the municipal surplus.
This tax burden on increase in value experienced by the character of urban land (excluding rustic in nature and forestry), subject to Property tax (IBI) and that as a result of its transmission.
Instruments subject to tax.

They are obliged to pay the tax all acts that mean transfer of immovable property, whether by purchase, gift or inheritance.
The obliged to pay the tax must submit to the council at which the land subject to taxation the corresponding statement, which must accompany the document showing the acts or contracts resulting from the imposition.

This declaration must be made within 30 working days from the date of the contract in all transmissions made interventions, or sales, donations, the constitution of usufruct, the right to use room and so on ... and on 6 months, when it comes to inheritance or succession mortis causa. The taxable, or whoever has to satisfy the tax and against whom the council can only address is:

1, - In cases of transmission of land or rights subject to tax, made on a non-profit, that is for free and generous (gifts, inheritances etc. ..) the person receiving the transmission or the right.
2, - transmissions of land or rights subject to tax, for valuable consideration, namely through payment (purchase, barter etc. ..), transferring, or in the case of sale, the seller.

Payment of property tax (IBI)

The Property tax (IBI) is regulated by the Law on Local finance, whose taxable event comprises the ownership of real estate and rustic nature of urban sites in the respective municipality or ownership of a right Usufruct or actual surface, or of an administrative concession on such property or on public services to those affected, gravel and the value of those buildings.
The fee payable is calculated by applying a percentage to the amount of land value, which appears determined by the tax authorities, upon receipt of real estate each year.
This percentage may vary per property is located in a municipality or another, since it was set with the relevant municipalities.
Currently the rate applied in the municipality of Alfaz del Pi, is 0.75% on the cadastral value.
This tax is collected and managed directly by Suman, Alicante Tax Management, which owns tax office in all major towns.
The period of payment of that tax (IBI) is established from July 22 until August 27 each year. We recommend, however, this tax in their household or box d savings bank, pay that is paid to their time. In case of default or delay, the amount of receipt will be plus costs and interest on late payments.
This information has been provided by the Legal Department of Real Estate "Perez Santamaria." Through a system of machine translation. Given that the Spanish tax system, especially with regard to the percentages, is very changeable, given that each year, the Government may establish changes in different laws etc. ..., it should always consult each case before making any real estate transaction.