Taxes to Pay for the Sale of a Property
Whenever you are thinking of selling a property, you have to know that the seller of a house must face the payment of three taxes:
1.Personal Income Tax(IRPF).
2.The Tax on the Increase of the Value of the Lands of Urban Nature (IIVTNU) denominated ¨plusvalía municipal¨.
3. Real Estate Tax (IBI).
Personal Income Tax (IRPF)
What is this tax?
It is a tax of the Spanish Tax Agency. It is the most important tax of the Spanish tax system and it is necessary to pay it if the sale of the property meant an increase in the seller's patrimony.
When does it have to be paid?
It is a tax that is paid during the year following the sale by means of the tax return.
The Tax on the Increase in the Value of Urban Land (IIVTNU) called ¨plusvalía municipal¨
What is it?
It is a municipal tax levied on the increase in value of urban land at the time it is transferred. When it is the transfer of a house, what is taxed is the transfer of the land on which it is built and not the building.
When does it have to be paid?
Within 30 working days from the date of sale.
Real Estate Tax (IBI)
What is it?
It is the tax that is levied on the value of the real estate of urban, rustic nature or of special characteristics.
When does it have to be paid?
Each legal authority determines in the tax ordinances the dates of payment. At the end of the voluntary payment period, the debt will be enforced with the corresponding surcharge and interest for late payment. There is usually the option to pay in installments: again, each local authority will establish the criteria and deadlines for taxpayers to pay the IBI in installments.
If you are looking for advice from a real estate professional, the professionals at Novocasa Silla can help you.
