When buying a property in Spain you must pay a Transmission Tax or VAT. That’s why it’s strongly advised to calculate the anticipated taxes before making an offer, or even making the decision to buy a property, whether that’s here in Mallorca or any other part of Spain. Purchasing a property also involves side costs …
Purchase Tax in Mallorca
Purchase Tax in Mallorca
When you buy a Property in Mallorca, or any other place in Spain, transmission tax has to be paid. Purchase tax in Mallorca are different depending of the property you are buying. As you will see if you use my Mallorca’s buying tax calculator, in case you buy a brand new property you will pay IVA tax. In case the property you are buying it’s not new, you will pay transmission tax (ITP) for your property purchase in Mallorca.
Mallorca’s buying tax calculator service.
The best way to calculate the taxes arising you purchase in Mallorca, it’s sending me the details and in a few hours you will get a breakdown, not only with the exact amount of taxes but also with the costs of buying the property in Mallorca.
IVA tax when buying a house in Mallorca
The vendor it’s a promoter, a company who had developed the property. In some cases, the promoter had both an old property but has fully reconverted.
The IVA tax may be 4%, 10% or 21% depending of the characteristics of the property you are buying.
This tax it’s going to be paid the same day you buy the property. Vendor will withhold it and wire it to tax offices.
Transmission tax on the acquisition of a Property in Mallorca
Transmission tax will be paid when you buy a second house in Mallorca and in this case the amount that you will paid it’s progressive. So, it depend o the purchase price. For properties under 400.000 euros you will pay 8%, that tax will rise up step by step up to 11%.
This tax has to be paid in a period of 30 days after the purchase.
Before you close the deal it’s essential to know the final cost of your purchase, so I recommend you to use my Mallorca’s buying tax calculator service.
In theory, the answer is simple. Every property elicits different taxes. In order to calculate these taxes, you must first understand the details of the property. The direct taxes that you pay when purchasing a property are on a sliding scale. Whereas, the indirect taxes that are paid annually on a Mallorcan property, depend greatly …
Costs Mandatory costs. Public Notary. To be able to inscribe a property at you name on the Land (property) Registry you have to sign the purchase deed in front of a Public Notary. Notary it’s paid by the purchaser and cost will depend of the amount of the purchase but also of the pages of …
Before even making an offer on a property in Mallorca, it’s wise to create a tax plan detailing the specific tax implications you may face once you make your purchase. This is important for understanding both the lump sum you will pay as well as the tax breakdown. Try my free Tax Calculator Service What …