At the moment of the purchase, doubts arise about the taxes to be paid.

IBI – Impuesto sobre Bienes Inmuebles

It is the best known of all municipal taxes and is levied on the ownership of a property. It is levied annually and the amount is determined by the cadastral value assigned to the property, set by the Ministry of Finance according to the value of the land and the construction. It also depends on the tax ordinances of each Town Hall, so it can vary a lot from one locality to another.

It is a tax that, although it will not be decisive when buying a property, it is important that you are aware of it, as they will have to pay it when you become an owner.

PLUSVALIA – Impuesto sobre el Incremento del Valor de los Terrenos de Naturaleza Urbana

This capital gains tax is levied on the increase in value of land. According to the Law, it must be paid by the seller, unless there is an agreement between the parties, which must be stated in the public deed of sale.

The amount will depend on several things: the years elapsed since the last settlement, the municipality in which the property or land is located and even the area in which it is situated.

ITP – Impuesto de transmisión patrimonial

Transfer tax: The last of the real estate terms we are going to discuss today affects second-hand homes. If this is the case, it is not the VAT tax that is due, but the transfer tax. It will depend (and a lot) on the autonomous community in which the property is located, with oscillations of up to 5 points between the communities that pay the most property tax and those that pay the least. In case of the Canary Island this tax in not so high as in another autonomous community.

IRPF – Impuesto sobre la renta

Income tax.The profit that the person who sells the property has, will have to declare it in the IRPF of the corresponding year.

Tasa de basuras

The rubbish tax is the tax that is paid for producing rubbish.