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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