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Taxes on the purchase of a property in Andalusia, Spain

In this blog, Welex, leading law and accountant firm in La Costa del Sol, is going to explain real cases of expenses and taxes in the purchase of a property in Andalusia, Spain: Taxes, notary and registry.

If you have decided to buy a property in Andalusia, Spain, we would like to inform you in a very precise way, as these are real cases, about the costs and taxes paid by several buyers in the purchase of their properties in Spain.

Keeping in mind that the taxable base of the transfer tax and documented legal acts is the value of the property transferred, we are going to present several cases with different purchase prices in Spain.

It is necessary to understand that the Tax Agency in Spain has the power to check the price declared in the purchase and sale transaction by the parties, in accordance with the reference values assigned by the Tax Administration itself, which appear in the official tax registers.

If the value determined by the Spanish Tax Administration is different to that declared by the parties, the Administration will notify a regularization proposal for the payment of the tax in accordance with the reference value assigned, communicating the valuation proposal duly motivated, with an expression of the means and criteria used.

The reference value is determined by the General Directorate of the Cadastre, obtained by examining the prices of all property sales and purchases made before a notary public, based on the data of each property in the Real Estate Cadastre in Spain. The reference value is the minimum amount for the payment of transfer tax and documented legal acts.

You should also take into account whether the object of the sale is a single property or several properties, such as garages and storage rooms. When dealing with a larger number of properties, the notary and registry fees will increase.

It is also necessary to consider whether we are dealing with the purchase of a newly constructed property transferred by the Developer, in which case the buyer will have to pay 10% VAT and 1.2% in respect of Documented Legal Acts in Spain. If, on the other hand, it is a second or subsequent transfer, the buyer will have to pay a 7% transfer tax.

Having said this, let us look at the following cases in Spain:

1) Purchase of a newly built home sold by the developer.

Purchase price: The amount of 297.500,00 €.

Expenses and taxes in Spain:

– VAT 10%: 29.750,00 €.

– Documented legal acts. 1.2%: 3.570,00 €.

– Notary’s office: 774,86 €.

– Land Registry: 302,45 €.

2) Purchase of a property of 340.000,00 €.

Expenses and taxes in Spain:

– Transfer Tax 7%: 23.800,00 €.

– Notary’s office: 846.45 €.

– Land Registry: 538.29 €.

3) Purchase of a property, two garages and a storage room for a purchase price of 435.000,00€.

Expenses and taxes in Spain:

– Transfer Tax 7%: 30.450,00 €.

– Notary’s office: 1.529,68 €.

– Land Registry: 1.280,72 €.

If you wish to see more examples, keep reading here: https://www.welex.es/taxes-on-the-purchase-of-a-property-in-andalusia-spain/

We hope the above information has been useful and of interest to you. If you have any questions regarding the payment of your taxes in Spain we invite you to contact our offices for any legal or fiscal advice you may need.

13 septiembre 2023/por adminproseo

Lawyer in Marbella

Donations from non-residents in Andalusia, Spain

At Welex, law and accountant firm in Marbella, we are pleased to explain a topic of great relevance to non-residents in Andalucía, Spain: donations. As experts in this area, we know the importance of understanding the legal and fiscal aspects involved in donations from non-residents in Spain.

Our aim is to provide you with the information you need to make informed decisions and ensure that your donations are made in accordance with current legislation in Spain. Rely on our knowledge and experience in the field of non-resident donations in Andalucía, Spain, as we guide you through this important legal process.

In the event that you are the owner of a property in Andalusia, Spain, and you are considering the possibility of donating it to a relative, we would like to inform you about the following aspects of the donation that may be of interest to you.

We assume that you are not resident in Spain for tax purposes, therefore you are obliged to appoint a person who is resident in Spain to be your representative in front of the Spanish Tax Office in relation to inheritance and gift tax in Spain.

Inheritance and gift tax are applicable throughout Spain and in the case of the acquisition of real estate located in Spain, the non-resident in Spain who receives the gift has the option to choose between the application of the state tax regulations or the regulations of Andalusia, Spain, in our case.

In the Autonomous Community of Andalusia, Spain, there is a 99% tax rebate for certain family members receiving the donation, which would be the following:

– Family members considered as Group I: Descendants, natural or adopted, under 21 years of age.

– Family members included in Group II: Descendants and adoptive descendants aged 21 or over. Spouses, ascendants or adoptive parents of any age.

Another factor to take into account when calculating inheritance and gift tax is the compulsory application of a multiplier coefficient for the different groups of family members. In the aforementioned cases of Groups I and II, the multiplier coefficient is 1.0. In the case of relatives included in Group III (2nd and 3rd degree collateral relatives by blood or affinity, ascendants or descendants by affinity) the coefficient would be 1.5 and in Group IV (more distant degrees of kinship and strangers) 1.9.

Keep reading here.

If you need advice on donations from non-residents in Andalusia, Spain, do not hesitate to contact Welex, law and accountant firm in Marbella. We are here to assist you through the whole Spanish legal and tax process.

Holiday Homes in Andalusia, Spain

Welex, our leading firm of lawyers and accountants in Marbella, is pleased to detail in this blog information and tax advice on holiday homes in Andalucía, Spain.

Our geography in Spain offers one of the best destinations for sun-seeking travelers among others, so it is not surprising that many see the south of Spain as an opportunity to start their own tourist accommodation business.

In order to assist you in the process of setting up your holiday rental in Andalusia, Spain, we have put together this short guide explaining the differences between flats and holiday homes in Andalusia, Spain.

In Andalusia, Spain, according to the legislation, there are different types of tourist accommodation depending on their uses and characteristics. We are going to focus on tourist accommodation in Andalusia, Spain.

Tourist flat in Andalusia, Spain:

The Junta de Andalucía defines the concept of tourist flat in Decree 194/2010 as a “set of accommodation units […] intended to provide tourist accommodation services, which have adequate furniture and facilities for the conservation, preparation and consumption of food and beverages, and which are subject to exploitation in common by the same owner”.

Tourist flats in Andalusia, Spain, are considered as tourist accommodation establishments that can provide tourist services complementary to accommodation.

Homes for tourist purposes in Andalusia, Spain:

In Decree 28/2016 it is defined as “properties located on land for residential use, in which an accommodation service is offered for a price, on a regular basis and for tourist purposes.

The homes for tourist purposes in Andalusia, Spain, according to the regulation will be advertised in tourist offer channels: national rental platforms, tourist service companies, travel agencies, among others.

The number of places is limited to 15 places if rented as a whole, 6 places if rented in rooms, and in no case may there be more than 4 beds per room, with a maximum rental contract period of 60 days.

The regulations are made up of a wide range of laws and regulations, the main one being the Andalusian Tourism Law 13/2011, which regulates all tourist activities in Andalusia, Spain. And you will be able to see in detail the requirements that must be met in terms of equipment, accreditation of ownership, occupancy license, complaint forms, etc.

How is income taxed in Spain?

Non-resident taxpayer in Spain:

On a property for tourist purposes in Andalusia, Spain, the income is taxed as income from real estate capital as it is income derived from the letting of real estate. If the owner of the property is resident in another Member State of the European Union, in Iceland or Norway, he will be taxed at a rate of 24% on the income he obtains and will be able to deduct the expenses he incurs in connection with the rental. In addition, you will be taxed at a reduced rate of 19%.

If your accommodation is a tourist flat, the income obtained will have to be declared as income from economic activities.

As a taxpayer in Spain, you will be obliged to file a quarterly tax return (form 210) for the income you receive every quarter and an annual tax return.

What income must be declared and what expenses are deductible in Spain?

The total income obtained from the short-term rental of your tourist accommodation and the following expenses that are directly related to the rental of the accommodation, i.e. those that correspond to the time during which the accommodation has been rented, are not included in the long term rentals

Practical example:

If you rent a property for tourist purposes in Andalusia, Spain, during the summer months, you cannot deduct the expenses for the whole year, they must be prorated based on the months it has been rented.

To conclude, if you are interested in investing in holiday homes in Andalucía, Spain, you have come to the right place. At Welex, our leading firm of lawyers and accountants in Marbella, Andalucía, we are committed to providing you with the advice and support you need to make the most of this opportunity.

We have a team of highly qualified experts who are fully conversant with the laws and regulations in force in Spain. Whether you need assistance in obtaining the necessary permits and licenses, the fiscal and financial management of your property, or the resolution of any legal disputes in Spain, our firm is here to help you every step of the way. Don’t hesitate to contact us for a personalized consultation and find out how we can facilitate your plans in the exciting world of holiday homes in Andalucía.

13 julio 2023/por adminproseo

Entradas

Taxes on the purchase of a property in Andalusia, Spain

Donations from non-residents in Andalusia, Spain

Holiday Homes in Andalusia, Spain

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