Additional costs when buying a new home
Normally these costs amount to about 10% to 13% of the declared value .
When buying real estate, which is not composed of new buildings, you have to pay a Land Transfer tax (Impuesto de Transmisiones Patrimoniales)
This is broken down as follows: 10% tax , local taxes, legal fees and notary fees.
In the Balearics the tax payable is tabulated as follows:
Till 400.000€: 8%
From 400.001€ – 600.000€: 9%
From 600.001 € - 1.000.000 €: 10%.
From € 1.000.000,01 : 11%
VALUE ADDED TAX (VAT = Impuesto sobre el Valor Añadido)
When buying first occupancy real estate, you must pay the value added tax, which is differentiated as follows
New construction : 10 %
Lands : 21 %
Broker commission : mediation commission is included in the sales price which means that the buyer does not pay the real estate agency any commission
Local property tax in Ibiza – IBI – MOD210
IBI is a municipal tax which has to be paid every year by owners of properties in Ibiza. The amount is determined by the value assigned to your property by the town hall – known as valor catastral.
The tax rate which has been approved by each Town Council – and which is the same for all properties within the municipality – will be applied to this value. This value is normally much lower than real marked value, which means this is not a very high amount.
Wealth tax – MOD 714
All property owners in Spain (both residents and no-residents) has to pay an annual wealth tax.
The Wealth tax is calculated on the value of the purchase price if it is larger than the town hall value (which it is 99% of all cases).
The tax is based on the net value of the total assets in Spain after deductions of the mortgage.
There is a tax-free allowance of €700,000. After that the tax rate works on a sliding scale starting at 0.2% and going up to 2.5%.
Calculated as follows:
Up to: 167.129,45€ the tax is 0,2 %
from 167.129,45€ to 334.252,88€ the tax is 0,3 %
from 334.252,88€ to 668.499,75€ the tax is 0,5%
from 668.499,75€ to 1.336.999,51€ the tax is 0,9%
from 1.336.999,51€ to 2.673.999,01€ the tax is 1,3%
from 2.673.999,01€ to 5.347.998,03€ the tax is 1,7%
from 5.347.998,03€ to 10.695.996,06€ the tax is 2,1%
from 10.695.996,06€ and above the tax is 2,5%