How much is Plusvalia in Spain?

One of the taxes that charges the selling of a property in Spain is the Plusvalía. But what is it? There are thousands of articles about how much will the buyer pay for the purchase of a property in Spain (aprox. 10% of the property price).

How is Plusvalia calculated in Spain?

The plusvalía is a local (municipal) tax charged by the town hall on properties when they are sold. It is calculated on the rateable or market value of the property, and the number of years that have passed since the property last changed hands.

How is Plusvalia calculated?

How is Plusvalía tax in Spain? To calculate the Plusvalia tax in Spain we have to take into account the increase in the value of the land over a maximum period of 20 years and the percentage applicable to this increase, as well as the tax rate (the percentage) approved by each local council, which cannot exceed 30%.

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What is the Plusvalia tax in Spain?

The plusvalía or land value tax is the tax applied to the increase of the value of the urban land once a property is transferred, sold, inherited, or received after a donation; paid by the seller in the vast majority of cases.

Who pays Plusvalia in Spain?

Plusvalia tax is one of two taxes owners pay on selling property in Spain (along with capital gains tax). Plusvalia tax is also paid on inheriting property in Spain (along with inheritance tax).

Is Plusvalia capital gains tax?

When you sell a property in Spain, you have to pay two different taxes: Plusvalia (in Spanish “Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana” or IIVTNU) and Capital Gains Tax (in Spanish “Impuesto sobre la Ganancia Patrimonial”).

How much tax do I pay when I sell my Spanish property?

Selling property tax: How much is selling property tax in Spain? When selling a property in Spain you need to be aware of the payment of Plusvalia and Capital Gains Tax. The payment of Capital Gains Tax is between 19% and 24% and Plusvalia would be a percentage of the sale.

How much does it cost to sell an apartment in Spain?

There is no fixed fee when it comes to selling a property in Spain as there are many factors that influence the amount of taxes to pay. Generally speaking in Spain on average the buyer will end up paying around 12%-14% on fees and taxes and the seller around 23% on the profit made from selling the property.

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How much is IBI tax in Spain?

Property tax (IBI) is paid by the purchaser once a year, which can be divided into several installments. The annual tax rate is 0.4 percent to 1.1 percent of the property’s cadastral valuation. This tax will be domiciled in Spain on your current account.

How much is Spanish non resident property tax?

The most up-to-date valor catastral can be found on your annual property tax (Impuesto sobre Bienes Inmuebles- IBI) bill. The most usual calculation of the taxable income is 1.1% of the valor catastral. The current tax rate for non residents is 19% for residents of the EU/ EEA and 24% for others.

How long do I need to live in a house to avoid capital gains tax?

Avoiding a capital gains tax on your primary residence

You’ll need to show that: You owned the home for at least two years. You lived in the property as the primary residence for at least two years.

Do you need a solicitor to sell a house in Spain?

Although it is not mandatory to sell property in Spain assisted by a lawyer, it is highly advisable that you do; particularly if you are a non-resident. Lawyer and regular contributor Raymundo Larraín Nesbitt takes us through the advantages of having legal representation when you sell a property in Spain.

What percentage is plusvalía?

One of the taxes that charges the selling of a property in Spain is the Plusvalía. But what is it? There are thousands of articles about how much will the buyer pay for the purchase of a property in Spain (aprox. 10% of the property price).

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At what level does capital gains tax start?

Capital Gain Tax Rates

The tax rate on most net capital gain is no higher than 15% for most individuals. Some or all net capital gain may be taxed at 0% if your taxable income is less than or equal to $40,400 for single or $80,800 for married filing jointly or qualifying widow(er).

What is Basura tax Spain?

MUNICIPAL TAXES (BASURA) are the expenses which must be paid to the Town Hall (Ayuntamiento) for rubbish removal. The amount due varies from one town to another and is normally paid during the months of April/May every year. The annual cost lies between 90.00 Euros – 170.00 Euros.