Do You Pay Stamp Duty On Property In Sotogrande?
by Liz Seyi Digital marketing managerOne of the most important things to appreciate for anyone
looking to buy a house in
Sotogrande is the fact that the outlay involved in a
property purchase is not restricted purely to the property’s purchase or
mortgage price. There are other key costs to account for, including relevant
taxes and duties, which together typically add about 10% to 15% to the price of
a house in Spain.
Stamp duty is very much one of those costs; however,
there can be some scope for confusion here, including as to whether and how
stamp duty applies for new-build and second-hand properties.
So, here’s a quick rundown of the latest stamp duty
situation for those interested in acquiring a property in this part of the
Costa del Sol.
How the situation differs between new and resale properties
Stamp duty in Spain is commonly referred to as AJD,
or Actos Jurídicos Documentados. It is most associated with the purchase of new
homes – that is, properties that have never been bought before.
The buyers of new properties in Spain are required
to pay both stamp duty and VAT – the latter known as IVA in Spain, and
amounting to 10% of the property price. In the case of houses that have been
bought previously, however, purchasers will need to pay Spanish Transfer Tax
(ITP) instead of VAT, with stamp duty often being included in the ITP price.
With regard to Andalucía specifically – where Sotogrande
is located – new tax rules that came into force in the region in 2019 have
implications for how much you pay. The AJD tax here is currently 1.5% of the
mortgage loan applied for; however, it can be as low as 0.3% for people under
35 years old, or 0.1% for people with disabilities equal to or greater than
33%.
What’s more, the new tax rules’ modification of the
AJD – which is also often referred to as the ‘Tax on Documented Acts’ – means
it must now actually be paid by banks, instead of affecting the consumer.
We can be key allies in your journey to a Sotogrande property
purchase
The various taxes, fees and other costs that apply
for those looking to buy a house in Sotogrande
can be a confusing subject; they are also liable to change. We are therefore
unable to guarantee that all of the information mentioned in this article will
be entirely up to date by the time you read this, so would urge you to seek
professional advice on the latest situation.
One thing we can guarantee, however, is that here at
Property Sotogrande, we will always serve as a dependable portal to the most
recent property listings from leading estate agents for the Sotogrande area of
Spain.
We allow you to search multiple agents’ property
listings simultaneously, which could enable you to land your dream Sotogrande
home sooner than you think!
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Created on Feb 24th 2021 02:44. Viewed 245 times.
Thank you so much everyone........
Feb 24th 2021 03:51