Real Estate Taxation in Spain
How much tax will you have to pay for the purchase of a property, and for its upkeep?
This is the question we are most frequently asked by our clients.
The answer is not easily calculated.
In any real estate transaction the payment of taxes is of the upmost importante for our clients
When buying a property, planning the payment of real estate taxes is essential. At this early stage, an experienced tax advisor familiar with real estate transactions will be able to calculate the extent of the taxes you will have to pay, even before you make the purchase.
We cannot emphasise the importance of planning and ordering the payment of taxes more.
Above all, you need to bear in mind that state, regional and municipal laws all affect Spanish tax regulations.
If you want to know what taxes you will have to pay for the purchase of your home, do not asume that the taxes you pay in your country for this transaction are the same as the taxes you pay in Spain.
One of the most frequent mistakes made by 80% of foreign investors in Spain is to make a comparison with their home countries.
Although there will be certain similarities, there are also major differences that make good tax advice even more necessary in Spain.
These differences, in relation to the taxes you would pay in your country, include the way in which taxes are levied, legislated, investigated, claimed and inspected by the tax office.
Please note that you must pay estate taxes both on a regular basis, and also on a one-time basis for specific acts, for example as a buyer, as a seller, when you receive an inheritance or upon making a donation
It is often advisable to calculate the tax consequences of each type of operation before making decisiones on which legal form is the most appropriate and advantageous for you.
Therefore, legality and taxation always go hand in hand when making appropriate decisions in wealth management.
To maintain precise fiscal control and to benefit from tax regulations in the most favorable way for you, contact us now.