Overseas investors have long had a keen interest in the Spanish property market, and no matter of any issues or uncertainty that we face here in Britain, Spain will remain as a very popular place to invest. Spanish law stipulates that a husband and wife, as well as children under the age of 18, can be considered as one single application under the Golden Visa Scheme, applying confidence to anybody looking to move to Spain.
The good thing about Spanish property agents is that they regularly deal with overseas investors looking to take advantage of the Spanish market, meaning that they are well placed to help you with your move to their country. However, as with any investment, it is important that you conduct your own research and begin looking into different aspects of your property investment, even before anything else happens. One thing that it is advised that you consider as soon as possible is everything relating to Spanish property tax.
Taxes and Regulations Depend on the Region
In Spain, different regions are often let to their own devices where authority is concerned, as the country has one of the most decentralised governments in the world. This means that different regions are able to stipulate their own tax systems and regulations, and so something that applies to one place may not apply to another, meaning you should always conduct your research when looking at properties in different regions.
Spanish Property Tax Charges
The Spanish Capital Gains Tax is different when compared to the UK Captain Gains Tax, as it is charged in some form, no matter how long you have lived within the country, apart from to those who are over 65 and have lived in the property for over 3 years. Spanish residents are required to declare any profit that they generate from the sale of the property, whereas non-residents will see 3% of their sale withheld, with the balance due within 3 months of selling the property.
If you are purchasing an existing property, you will need to pay Property Transfer Tax, whereas for new-build properties, you will be required to pay IVA (VAT). It is safe to assume that these charges will be up to 10% of the property price, and so these charges will certainly have a big impact on the property that you choose to purchase. You may also have to pay Title Deed Tax and the Land Registration Fee as the buyer, however these charges are much small, and typically range between 1% and 2.5% of the purchase price.
Inheritance tax was once different for some people depending on whether or not they were a Spanish resident. However, since 2014 both residents and non-residents have been subject to equal inheritance taxes.
For more information or to browse a range of property for sale in Spain, please contact Hopwood House.