THE ITP: TAX ON PATRIMONIAL TRANSMISSIONS

The buying of a property comes tied to the payment of the amounts of taxes from the selling part to the buying part. In our previous article that we talked about the IBI, the annual tax that the owner of a property had to pay for having a property, now, we are going to talk about ITP (Patrimonial transmissions).

The ITP is charged on all autonomous communities of Spain since the early years of 90 for the buying of a property. This tax that affects the buying, although today to the rent of a property, is a state tribute although its collection is destined to the autonomous communities that are in charge of applying it in mayor or less measure.  

Difference on buying: If it comes about getting a new property, the tax that belongs this operation is IVA (VAT), which is the same for all States. But if it is a secondhand property, the Tax on Patrimonial Transmissions (ITP) applies.

What is it and who is affected?

It is a tax that charges the transmissions of the patrimony that are made between particulars. It applies on all those cases that a transfer of patrimony or property is made. Among the most common cases are the sales of cars and properties.

This tax has to be paid by the person who acquires the property, due the person who sells will have to pay tribute in the IRPF for the patrimonial earnings that he or she have acquired and which are understood as the difference between the price at which he bought and at which he sold.

The rented also held to the ITP

The normative establishes with clarity who has to pay it. On the same way that the trading of a house or a used car, in which the person who pays it is the buyer, in the case of renting, the tenant is the one who pays the ITP.

To calculate what has to be paid, it will multiply the amount of annual rent for the years of the contract. If its duration is less than three years, it will be paid for this term, but if it is higher, the annual cost will multiply by many years as the contract lasts.

The tax on patrimonial transmissions

In the case of transmission of a secondhand property, the buyer will be forced to pay the ITP, whose tax varies according to the autonomous community. It uses to be between the 6% or 11% over the price of sell reflected on the public writing of the buy-sell.

The minimal states for the Tax on Patrimonial Transmissions are the following; however, all autonomous communities apply rises according by the State:

  • 6 %, if it is about the transmission of real states.
  • 4 %, if it is about the transmission of personal properties

Therefore, it is important to understand these variations before deciding where it wishes to buy. This tax will finish before 30 days from the date of signing before the public notary.

ITP for communities

On the next table, it shows the ITP that it has to pay on each autonomous community of Spain at the moment of getting a house. In three communities like Baleares Islands, Asturias and Extremadura, the ITP changes more. The value of the property determined by the type of ITP that it has to apply.

How to do it?

The tax has to be paid before the Delegation of the tax office of the autonomous community corresponding after completing the official form established for this purpose. It can also be domiciled.

It is necessary to give the D.N.I o C.I.F., and the first copy and a simply copy from the public writing or the original of the contract and a copy if the transaction subject is contained in a private document, of the act giving place to the born of the tax.

The time of incoming of the tax is 30 working days. (without counting the Sundays or holidays) that begins to run from the day next of giving the property contract.

In any case, to spear any fright, it will always come handy to consult a lawyer to get fiscal advice.

Now that you have the knowledge of what ITP is a tax that you will have to pay at moment you get a property… Do you have the chosen house of your dreams? We help you with that matter too! In Mallorca, you have a great variety of zones and landscapes to discover.

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