Author Topic: Spanish Property Tax  (Read 657 times)

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spaceward

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Spanish Property Tax
« on: December 09, 2014, 13:13:25 PM »
Hi all,

After spending a cracking week in PP back in the last week of October it has made me even more interested in owning a property in this lovely Mallorcan town so I've spent most of last week reading about Spanish tax laws regarding owning property , selling property etc etc and to be completely honest I'm sinking in what I can only describe as a mire of laws , numbers ,percentages etc.

Please could someone give me a basic "simple and straight forward in laymen's terms " understanding as to what I should be expecting to pay on owning a property , when I decide to sell the property etc etc.

Thanks again to all on this Forum who have helped in anyway to answer my questions regarding my hopes of owning an apartment in PP. I very much appreciate it.

Regards,
Ian

Belladonna

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Re: Spanish Property Tax
« Reply #1 on: December 09, 2014, 15:24:58 PM »
Ah. Straightforward and simple eh!? More like a wing and a prayer! I think the only way is to have a good recommended solicitor. Someone will be able to help with knowing someone up to date I'm sure. Although to be honest Ian, I still think it will be confusing!  ::)
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Eleanor

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Re: Spanish Property Tax
« Reply #2 on: December 09, 2014, 15:39:46 PM »
It is confusing and I agree with Bella. Ian do get as much info as you can before taking the step. When buying the example given is to add 10% of the purchase price to cover the tax etc of buying. Selling is another matter altogther. Plus (soapbox time again) agents charge 5% + iva so keep that in mind. There are things which pop up all the time even when you think you have thought and budgeted for everything. Money can be taken from your account without your knowledge and rules which apply here do not always safeguard you in Mallorca.

Be very aware also of the little things as an example - if you take out house insurance in Mallorca you have to give 2-3 months notice of cancellation (depending on company terms) this is law. Try to get a continuation quote and you will find it impossible. Therefore you have to cancel your insurance 2/3 months prior to expiry and then either start again with them or a new company. This is just one thing to watch for - believe me there are loads!

I do not want to put you off at all. I just wish there was more info around when we bought. Even the internet wasn't around then. Had I been aware then as I am now I just wonder .... really wonder! Just be careful and get as much info as you can and whatever you think your costs are going to be then double it and you may be ok.  :)
Eleanor


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spaceward

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Re: Spanish Property Tax
« Reply #3 on: December 11, 2014, 13:15:28 PM »
Hi,

Thanks very much for your response to my questions regarding Spanish property Tax . I am allowing an additional 15 % for the buying but I'm completely unsure about what I'll be having to pay in on going tax in the years that I own the property and when I come to think about selling .

Does anyone have any idea of figures , percentages of tax payable during ownership and / or experience of selling ?

Thanks again for everyone's help.

Regards,
Ian