Reply To: Naive couple want to buy a house in Spain!

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Anonymous
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Hi Bopsy,

IVA is the Spanish equivalent of VAT currently 7% which is applied to all property purchases in Spain.

Whether you buy off plan or a resale property, the amount is the same, the name is different, so you need to account for 7% of the purchase price.

Under declaring you don’t want to get involved with đŸ˜‰ This is when you under declare the value of the property, when sold, the value under declared doesn’t show up on the books, therefore you are not liable for capital gains tax on this amount.

Be very careful on this as in the past a lot of sales have gone through with Black Money for the under declared amount leading to a chain of problems later on.