Change to ITP, the property transfer tax

March 8, 2013

The Spanish property transfer tax, (Impuesto sobre transmisiones patrimoniales or ITP) is revised again for 2013.

Rather than applying one rate according to the purchase price, there are now three purchase price bands and the purchaser will pay the appropriate percentage rate within each band – as follows:

  • Amount payable on purchase price up to 400.000 Euros – 8%
  • Amount payable from 400.001 to 600.000 – 9%
  • Amount payable from 600.001 upward – 10%

Example for purchase of a house for 525.000 Euros.

– 8% on 400.000 Euros = 32.000 Euros.
– 9% on 125.000 Euros = 11.250,00 Euros.

TOTAL: 32.000,00 + 11.250,00 = 43.250,00 Euros

Calculating your buying costs.

For an overview of all of the costs you should allow for when buying a property in Mallorca, please see: Property purchase costs in Mallorca

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