When buying or selling property in Spain, you'll encounter several important taxes. Here's what you need to know about the main property taxes in Spain.

Taxes When Selling Property

Personal Income Tax (IRPF) Property sellers must declare income from real estate sales on their annual tax return. The tax rate varies progressively based on total earnings for the financial year.

Municipal Capital Gains Tax (IIVTNU) This local tax applies to the increased value of urban land during your ownership period. Payment is due at the town hall within:

• 30 working days after sale
• 6 months for inherited properties

Real Estate Tax (IBI)

• Paid annually to the city council
• Applies to business premises, housing, and garage spaces
• Can be split between buyer and seller based on the sale date

Taxes When Buying Property

New Buildings:

• Value Added Tax (IVA): 10% for standard properties, 4% for subsidized housing
• Canary Islands: 7% IGIC tax or 5% for primary residences
• Ceuta/Melilla: IPSI tax applies
• Stamp Duty (AJD): Rate varies by region, applied to purchase price

Used Properties:

• Transfer Tax (ITP): Varies by region, replaces VAT
• Generally ranges from 6-10% of purchase price

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