If you wish to emigrate to Spain soon, you may be able to benefit from a reduced transfer tax when purchasing property. In this post, you will find more information on the different favourable rates when buying the family home in Spain.<\/p>\n\n\n\n
The various autonomous regions in Spain have the power to set transfer taxes. These are the transfer taxes on resale (ITP<\/em>) and stamp duty on new construction (AJD<\/em>). <\/p>\n\n\n\n There is no reduced VAT rate<\/strong> on emigration. Residential new construction is sold at 10% VAT in the mainland and Balearic Islands and 7% sales tax in the Canary Islands.<\/p>\n\n\n\n So we need to check what the reduced rates and specific conditions are for each autonomous region. Below are some examples.<\/p>\n\n\n\n In the Comunidad Valenciana<\/em> there are a number of reduced rates for the first family home. <\/p>\n\n\n\n For houses for resale<\/strong> (ITP <\/em>), there is a rate of 8% for persons under 35 years of age acquiring their first family home. For persons acquiring a family home for the self-housing of their 'large family' with a combined income below 45000, the rate is 4%. The same applies if you buy the family home as a disabled person, for example with a disability > 65%. <\/p>\n\n\n\n A 'large family' basically means (but there are several exceptions): 2 parents with three children under 21 years of age.<\/p>\n\n\n\n For new building <\/strong>(AJD<\/em>), there is a reduced stamp duty rate of 0.1%. The deadline is 12 months after purchase to make the property a permanent residence. Additional condition is that you continue to live there for 3 years after deed. You should register with the municipality as soon as possible, with a deadline of 12 months, as well as provide proof of residence (e.g. water and energy bills).\u00a0<\/p>\n\n\n\n Find out more about purchase costs in Valenciana here.<\/a><\/strong><\/p>\n\n\n\n For houses for resale <\/strong>(ITP<\/em>) there are reduced rates for buyers under 35 with a professional income below \u20ac26,620 and \u20ac1,800 income from savings and investments, and who wish to purchase their family home. In addition, the 3% rate also applies to 'large families' with an income of less than \u20ac44,000 (unless you have more than 3 children). Finally, there is also the rate of 3% for certain disabled people with disability > 65%.<\/p>\n\n\n\n For new-build homes <\/strong>(AJD<\/em>) there is a reduced stamp duty rate of 0.1%. Compared to the Valenciana autonomous region, the conditions are stricter. For instance, the conditions are the same as for resale in Murcia (see above), while in the Comunidad Valenciana <\/em>the reduced rate has a wider scope.<\/p>\n\n\n\n Find out more about purchase costs in Murcia here.<\/a><\/strong><\/p>\n\n\n\n For houses for resale<\/strong> (ITP<\/em>), the standard rate is reduced from 7% to 6% if the purchase price is less than EUR 150,000 and you are destined the property as your usual residence. If you are under 35 years old, the rate when you buy a property destined as your usual residence with a purchase price lower than EUR 150,000 is even 3.5%.<\/p>\n\n\n\n For new-build homes<\/strong> (AJD<\/em>), the standard rate of 1.2% is reduced under the same conditions. The rate is 1% for habitual residence with a purchase price of EUR 150,000, but 0.3% if you are under 35.<\/p>\n\n\n\n In addition to the above reductions, there are other benefits, for example for victims of domestic violence. <\/p>\n\n\n\n Find out more about purchase costs in Andalusia here.<\/a><\/strong><\/p>\n\n\n\nReduced rates in Comunidad Valenciana (Costa Blanca North & South)<\/h4>\n\n\n\n
Reduced rates in Murcia<\/h4>\n\n\n\n
Reduced rates in Andalusia<\/h4>\n\n\n\n
Decision<\/h4>\n\n\n\n