SPAINSH PROPERTY TRANSFER TAX
The Spanish tax on Patrimonial Transmissions (known as ITP) include 3 different types of taxes:
-
- Patrimonial Transmissions (Transmisiones Patrimoniales Onerosas, TPO)
- Company Operations (Operaciones Societarias, OS)
- Documented Legal Acts (Actos Jurídicos Documentados, AJD), like notarised documents.
In this article we are going to focused on the first one: Patrimonial Transmissions against payment.
This tax charges the transmissions of the patrimony or property that are made between particulars. These transmissions are out of the commercial traffic.
Mainly, it taxes the sale of second-hand houses, the rent of your property, the sale of a vehicle or capital increases. And has to be paid by the natural person who acquires the property or the patrimony.
The ITP in a buy-sale of a house
Only for a second-hand house between particulars, because for the purchase of a new house you only pay the IVA tax. The ITP is paid by the person who buy the house, the other one has to pay the IRPF tax.
The ITP when rent a house
You only pay for it once, when the contract is signed. The tax base is calculated multiplying the price of the month of rent and the months of the rental.
Example:
-
- Cost of the rent: 500 euros/month
- The lease is for 3 years (36 months)
The tax base on which the ITP is applied: 500×36= 18.000 euros
To that base you need to multiply the tax %. If its 8%, the tax to paid will be –> 1.440 euros.
The ITP in the transmission of a vehicle
To calculate the amount, you need to go to the list that the Agencia Tributaria published every year with the average sale price of all the cars brands.
ITP% BY AUTONOMUS COMMUNITIES:
These transmissions tax differently in each Autonomous Community, between 6% and 11% over the price of sell reflected on the public writing of the buy-sell. So, the higher the price of the transaction the higher will be the tax price.
| SPANISH AUTONOMUS COMUNITIES | % ITP
(2022) |
| ANDALUCÍA | 7% |
| ARAGÓN | 8-10% |
| ASTURIAS | 8-10% |
| BALEARES | 8-11,5% |
| CANARIAS | 6,5% |
| CANTABRIA | 10% |
| CASTILLA Y LEÓN | 8-10% |
| CASTILLA-LA MANCHA | 9% |
| CATALUÑA | 10-11% |
| COMUNIDAD VALENCIANA | 10% |
| EXTREMADURA | 8-11% |
| GALICIA | 9% |
| C. MADRID | 6% |
| MURCIA | 8% |
| C.F. NAVARRA | 6% |
| PAÍS VASCO | 7% |
| LA RIOJA | 7% |
HOW TO DO IT?
To pay the ITP tax, first you need to have your NIE number.
The TIMING to pay the tax starts the day after the formalisation of the buy-sell contract. Since then, you have 30 working days to do it.
You always must fill an official form in accordance of the transmission done. In most cases you will have to fill the official 600 Form (modelo 600, as it’s named in Spain). Unless you buy a second-hand vehicle (620 Form).
You can fill it in the tax office or you can download and completed online.
Apart from that Form, you will have to attach your contract signed.
