FISCAL CHANGES IN 2010

Features » Property

Contributor / 2010-06-23 15:07:30

2010 will not only be the year in which we had the wettest winter, it will also be the year in which we experience numerous fiscal changes. In this article we give an overview of the most important changes that especially concern non residents in Spain.

You sell a property in Spain and make a profit

As stated in the last Leader, a non resident in Spain pays taxes over any realised surplus values from real-estate sales. The surplus value is roughly the difference between the sales price and the purchase price minus the costs associated with the purchase (for example estate agent and notary costs).

This tax was 31% until 31st of September 2006. It went down to 18% between January the 1st 2007 and 31st of December 2009 and has now been increased once again to 19%.

You are a non resident and you rent your property in Spain

In this situation you must pay tax in Spain on the gross income. This rate is 24% and remains unchanged in 2010.

You own a property in Spain which is empty during the whole year

As stated in the last Leader, you have to pay taxes on a notional rental income which will be calculated on the rateable value of your house. The tax is 24% and this rate remains unchanged as well.

You’re planning to buy a new property

If you buy a new property you won’t pay transfer tax but you will pay VAT. Starting July the 1st 2010 the VAT rates in Spain will be changed. Currently you pay 7% VAT when buying a new property, from July the 1st this will be 8%. In this case it’s worth considering completing the purchase before July the 1st.

The VAT raise will also be felt while purchasing consumer goods. Here the VAT will be raised from 16% to 18%. The lowest VAT rate (essential goods) remains unchanged at 4%.

You’re planning to buy an existing property

Till now on the transfer tax with the purchase of existing properties in Andalusia you paid 7%. However, since the beginning of March the Andalusia government has increased the transfer tax from 7 to 8%, starting 19th of March 2010. Be aware; the raise only concerns the real value higher than 400.000 euro.

The raise of 7% to 8% also applies the transfer of garages with a real value higher than 30.000 euro, the purchase of new cars with a potential of more than 15 fiscal HP and the transfer of boats with a length of more than 8 metres.

For more information email newproperties@ctv.es or take a look at the website www.torrequebrada.nl