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Home > Buying Guide > How to buy a home in Spain: Payment of taxes

Buying Guide  

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How to buy a home in Spain: 
Payment of taxes

Before you buy, it is important to note that the conclusion of any contract of sale involves the obligation to pay taxes, so you should quantify the amount payable in advance. The price stated in the deed of sale form the basis on which to calculate the tax payable, but if such amount is less than actual value, the Treasury will rotate an additional assessment for the difference.

The tax payable will be different depending on whether buying a first home, made directly to the developer, or purchase of previously owned homes.

PURCHASE OF NEW HOMES: The buyer must pay the seller the amount of Value Added Tax (VAT) and the Canary IGIC. Such tax shall be paid the vendor and will be delivered along with the price. In addition, the buyer will pay the Stamp Tax, corresponding to the Autonomous Communities, whose amount will be between 0.3% 
(Super-reduced rate for cases specially protected by law) and 2% of 
sale that is stated in writing. The payment of this tax will be self-assessed on an official form, and entered in an account of the Treasury, through any of the collaborating banks.

Who handles payment 
of taxes?

The management of tax payment, ie, obtaining self-assessment forms, the calculation of the fee, the income of the amount in the relevant institution, and the presentation of the form with payment made at the office of the Treasury may be carried out either by the buyer himself or by a private agency or by the notary in which writing has been granted if management serves. The choice of system is the buyer, who should know:

  • That place has to submit a form of self-assessment of the Property Transfer Tax on purchase of used housing, and stamp duty in case of purchase of new housing, is: 

    • The tax office of the autonomous community, in the case of provincial capitals. 

    • Liquidating the District Office, which is carried in the records of the Property, if it comes to people who are not provincial capital. 

  • That the payment of Property Transfer Tax and Stamp Duty must be done within 30 working days from the date of execution of the deed. Delays will result in the imposition of surcharges. 
  • That the payment of those taxes is required for you to take out the registration of rights acquired in the Land Registry. 

BUYING USED HOUSING: Where to buy existing homes to the owner thereof, the tax payable will not be the Value Added Tax (VAT), but the transfer tax, paid to the Autonomous Region in the housing that is acquired through self-assessment of the amount in an official form, and income from that account in the Treasury through any of the collaborating banks. Amount: the amount is fixed by applying a percentage of the price to be determined by the Autonomous Community, which is between the 
6 and 7%.

DEED OF LOAN is subject to the payment of stamp duty tax, for a fee will be between 0.5% and 1%, according to the Autonomous Community in question, the total amount of the mortgage liability, ie , not the amount actually paid, but the guaranteed amount for the repayment of principal, interest and costs of implementation. The writings of novation, subrogation and cancellation of mortgage loans are tax exempt.Finally we note that if you buy subsidized housing (VPO), tax rates will generally be reduced. 

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