Date post: | 30-Jun-2015 |
Category: |
Economy & Finance |
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Property Sales Tax in Cantabria
Property Sales Tax Payable in Spain
All new properties in Spain are subject to IVA (equivalent to
VAT in the UK & Ireland) whereas secondhand properties are
subject to ITP (Impuesto de Transmisiones Patrimoniales).
IVA is set by the State government and ITP is set by the
regional government.
Property Sales Tax Payable in Spain
The Spanish government announced on 19/08/2011 that the
IVA rate would be reduced to 4%, down from the standard 8%,
in order to promote the sale of vacant new properties in Spain.
This specially reduced rate is valid until 31/12/2011 when it will
revert to 8%.
Property Sales Tax Payable in Cantabria
The standard rate of tax payable in Cantabria on the transfer
of secondhand property and the creation of rights over the
property (except for mortgages) is 7% of the value of the
property.
Rate for Higher Value Property Transfers
The rate of tax payable increases from 7% to 8% on that
portion of the value of the property over €300,000.
Rate for Higher Value Property Transfers
The higher rate of 8% also applies on the portion of the value of the
property over €30,000 if the property in question is a garage, not
being a garage attached to a property where a maximum of two
garages may attract the lower rate of 7%.
Lower rate of 5% in Special Circumstances
A special lower rate of 5% applies to property transfers in which the
property that is the subject of the transfer shall constitute the
principal residence of the purchaser where any one of the following
criteria are met:
Lower rate of 5% in Special Circumstances
- Where the purchaser is a legally defined 'large family'
- Where the purchaser is a person with a physical, sensory or mental
disability, classified as being a disability of a degree between 33%
and 65%
Lower rate of 5% in Special Circumstances
- Where the purchaser is under the age of 30 at the date of purchase
of the property. If the purchasers are a married couple and only one
is under the age of 30, then a rate of 6% applies
- To certain property transactions that involve state subsidised
housing
Lower rate of 5% in Special Circumstances
- This special rate only applies to those property transactions with a
value under €300,000, with the normal rate applying to any portion
above that amount.
Property Transactions in Areas of De-population
In any geographic area of Cantabria that has been classified
as suffering from depopulation, the rate of tax on property
purchases shall attract a rate of 5% for those properties up to
the value of €300,000, with normal rate applying to any portion
over that value.
Lower rate of 4%
- A lower rate of 4% shall apply where the property being purchased
shall constitute the primary residence of the purchaser where the
purchaser has a disability classified as being of a degree greater than
65%. The following special circumstances should be highlighted:
Lower rate of 4%
- Where the disabled person is one of a number of joint purchasers
then the 4% rate shall apply to that portion of the property that
pertains to them
Lower rate of 4%
- Where the purchasers are a married couple, with shared
matrimonial assets (sociedad de gananciales) and where one of the
spouses is disabled to a degree greater than 65%, the rate of 4% shall
be applied to the purchase
Lower rate of 4%
- As with the other special rates, this rate shall apply up to a value of
€300,000 with the standard rate applying on the portion of the
transfer over this amount
If you would be interested in a free and comprehensive
guide that will help you to avoid the typical pitfalls the
foreign buyers of property fall into as well as dealing
with issues such as...
Guide to Dealing with Property in Spain
To find out how to deal with such issues as...
Which legal checks on a property
are vital to avoid any problems
The step-by-step process
of buying a property in Spain
As well as...
Typical ploys to watch out for
to avoid being defrauded.
Property taxes you pay and
those you don't!
And much more...
Download the myAdvocate Spain guide to Dealing with Property in Spain by clicking on:
Secrets to Dealing with Property in Spain
Or for further information on the property purchase process specifically go to:
Spanish Property Lawyers
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