I am looking to do a straight property swap from france to the region i am looking to buy long term. Then resell the swapped property to another better property. This could involve additional taxes & legal fees. Would i be liable for the IVA Spanish tax if i resold the property swap house straight away .
You only pay VAT when you buy a new home from a developer. So at the time of the swap you wouldn’t pay VAT but you would have to pay something called Transfer Tax, known in Spain as ITP, for whatever value you swap for. Even if you are paid in kind (property), there has to be a monetary value on the deeds, for example €200,000, and depending on where you buy, you would have to pay ITP, which is 10% in places like the Valencian Region and Catalonia. You would then pay capital gains tax and Plusvalia when you sell that property, and then either ITP or IVA when you buy the next property, depending on whether you buy a newly built property from a developer or not. Transaction costs are high in Spain, it pains me to say.