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Hi, can anyone help with this. We bought a property in Villamartin in 2021 and paid the government tax of 10%. If we sell the house and buy another one do we have to pay 10% again on the full purchase price is is there some sort of allowance?
Posted: Wed Mar 1, 2023 9:53pm
Helpful member
Hi
Yes you would have to pay again, the rate varies between communities and you pay more for a new build
Posted: Thu Mar 2, 2023 8:42am
Legendary helpful member
Yes you pay everything again in full when purchasing another property.
Not forgetting the tax you have to pay when you sell your property along with estate agent and legal fees. Estate agent fees average around 5%.
Drop your solicitor a line and ask for his professional advice as everyone’s situation is different.
Different rules for taxation for residents to non residents, length of time you’ve had the property, profit/loss on property price and in some cases your age.
Also the way money is retained by a solicitor after the sale may have some bearing on the amount you have to spend on another property.
It can be extremely costly buying and selling in Spain
Lynn
Posted: Thu Mar 2, 2023 6:29pm
Legendary helpful member
Hi Mike,
Yes, ITP (Property Transfer Tax) would be payable on another house purchase. In Comunidad Valenciana, the ITP rate is 10% - you don't pay ITP on a new-build, but you pay IVA (VAT) instead, which also happens to be 10% of the purchase price. ITP is cheaper in other regions, e.g. 8% in Murcia and 7% in Andalucía.
Kind regards,
Kim
