@The Australian wrote:
The Spanish tax man will fleece anybody owning a property in Spain for every Euro they have got. Sales tax on the Catastral valuation of the property, yearly property taxes rising, stealth taxes, money confiscation by a bankrupt Government desperate for funds. Annual wealth tax. It is only going to get worse.
And yet according to the published figures, over 38,000 foreigners bought property in Spain last year, an increase of 28.4% over 2011.
Go figure, as they say.
I am happy to buy a brand new property…peanuts compared to Australian prices but I am confused about all the taxes I will have to pay.
Can anyone help me?
For new build property the purchase tax (VAT or IVA in Spanish) is now 10% and I guess you have to add on maybe 3% to cover other costs (notary, mortgage, etc).
there are other taxes as descri¡bed here: https://www.spanishpropertyinsight.com/tax-and-pensions/property-taxes-for-non-residents/
but as a rule of thumb I’d budget for 13% purchase costs, at least €200/month on local council taxes, insurance, maintenance, community fees, etc, and then say €10k to sell the place.
It all adds up, and when you compare it to renting I find renting usually wins.
(Oh and take Jake with a pinch of salt by the way)