What are the costs involved in the purchase?
Comparable to a purchase in Belgium and the Netherlands, you pay VAT (on a new build) or registration fees (on an existing property), notary fees and the costs of your lawyer. The good news is that these costs are generally lower for new build properties than in Belgium and the Netherlands. You should bear in mind that, on top of the purchase price, you will have to pay around 13% to 14% in costs. That way, you will not be faced with any surprises!
What are the costs of owning a home in Spain?
The exact costs are different for everyone. It depends on a number of factors, such as the type of property you have bought, the municipality where it is located, but also on yourself. Will you use the property as a second home, are you moving to Spain or are you going to rent it out? Below we give you an overview of costs that people are often faced with. Would you like to find out what is applicable to you? Feel free to ask us!
The 'Impuesto sobre Bienes Inmeubles' (IBI) is a form of property tax. The exact percentages vary from municipality to municipality, but are generally between 0.4 % and 0.9% on the cadastral value of the property.
Spanish income tax
Of course, this depends very much on your personal situation. Are you using the property as a second home? Then you pay the 'Impuesto de no residentes' (IRNR).
You must declare annually 1.1% or 2% of the cadastral value of the property, on which you pay 19% tax. Do you rent out your house? If so, you will have to pay 19% on your net rental income. Are you buying the property through a company or moving to Spain? Then things are different again. Contact us for more information.
Spanish patrimony tax
There is not much to worry about. Spain does have a wealth tax that also affects Spanish property (the Impuesto de Patrimonio), but the exemptions are so generous that most people are not affected. Want to be sure? Feel free to ask us. Immo Linea Spain is here to inform you.
If you have bought your property in a residence, in most cases you will have to pay a common fee. This depends on the type of residence, but also on the services provided by the residence.
Post-purchase tax guidance
Whether you become a Spanish resident or only have a second residence there, you are obliged to file a Spanish tax return. You can do this yourself (in which case it is free) or have your Spanish tax lawyer do it for you, which will cost you around € 150/year. Whichever option you choose Immo Linea Spain will be happy to help you on your way!
Taxation in Belgium and the Netherlands on owning a second residence in Spain
If you remain a Belgian or Dutch resident, your Spanish home must also be declared in your tax return. However, the tax impact is small (and sometimes non-existent) as Belgium and the Netherlands have to exempt the income from your Spanish property. In some cases, you may even be able to obtain a tax benefit from your Spanish property! Curious? Come and talk to us about it. Immo Linea Spain will be happy to give you all the information.