What are the taxes on the purchase of a home?

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When buying a home you must take into account the tax burden, there are various taxes that will decrease the expected return and must therefore be calculated 

  1. VAT: Value added tax is currently in 10%, for many years remained in the 7% and during the crisis the Government of Zapatero downgraded it to 4% to stimulate sales.
  2. IAJD: Documented legal acts tax levied the contracts of the purchase of a home and the mortgage, it ranges between 0,5% and 1,5%, according to the autonomous communities. In Barcelona has been changing in recent years, going from 0,5% to 1,5% currently applied
  3. ITP: The property transfer tax, levied on the sale of second hand dwellings. The law that regulates the ITP refers to the «real value of the home», but the Government calculates it by applying coefficients to the rateable value or by accepting the value declared in the sale if this top. In Barcelona, this tax is 10%.
  4. Added value: Tax the increase of the value of the land of urban nature is paid by the seller to the municipalities, the calculation is done by applying coefficients to the rateable value according to the years that have been proprietary.
  5. IBI: Tax on real estate, is a municipal tax levied the home ownership. It is calculated by applying a percentage of the rateable value. In Barcelona, the percentage applied is the 0,825% on the rateable value.

In short, a 13% on the value of the purchase is paid (10% VAT + ITP 1,5% + IAJD sale + 1,5% IAJD mortgage). Therefore, before buying a house you should do well the numbers and take into account all these taxes so you don´t have unpleasant surprises.

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