Taxes when buying or selling a home in Catalonia
When carrying out real estate transactions in Barcelona, It is crucial to understand the taxes when buying or selling a home in Catalonia. We must keep these taxes in mind if we do not want to get any surprises..
In Araico Assessors, experts in the Barcelona real estate market, we provide you with a detailed guide to the key taxes to consider if you are in this situation.
Property Transfer Tax (ITP)
When purchasing a second-hand home, must be paid Tax on Property Transactions. This can vary between 5% and the 10% of the transaction value.
The buyer is responsible for settling the ITP before the Generalitat of Catalonia within a period of 30 business days.
Municipal capital gains, another tax when buying or selling a home in Catalonia
In the case of the Municipal capital gains, taxes the increase in value of the land since the last transfer and the seller has the responsibility.
In this case, Payment is made at the corresponding Town Hall within a maximum period of 30 days after sale.
Personal Income Tax (IRPF)
If the home is sold for investment purposes, The seller must declare the capital gain in the corresponding fiscal year.
On many occasions, sellers for investment purposes do not take this tax into account and make erroneous calculations that lead to unpleasant surprises.. For that reason, It is always recommended that to make a real estate investment, consult a real estate advisor first.
Other additional expenses and taxes when buying or selling a home in Catalonia
In addition to the taxes mentioned, Real estate agency fees should be considered, notarial and registration costs, among other disbursements.
Tips to minimize taxes when selling a home in Catalonia
- Advance tax planning: Consult experts to identify tax benefits and optimize the transaction.
- Exemptions and bonuses: Take advantage of available exemptions, such as Municipal Capital Gains for inherited homes.
- Habitual housing: If it was your main residence, You could have tax benefits such as the exemption of capital gains in personal income tax.
- Deductible costs: Consider expenses such as previous renovations or fees that may be deductible.
- Price negotiation: Reducing the sales price may result in a lower tax base and, but still, a lower tax payment.
If you want to buy or sell a home in Catalonia, trust Araico Assessors, You will obtain the key information and we will facilitate your real estate transactions in Catalonia. Request personalized advice for a successful experience when buying or selling a home in Barcelona.
