The VAT on new buildings is 10%.
This includes about 3.5 percent for the notary, registration, lawyer, application NIE and seal right.
If you need a loan, it will be 1% on the mortgage value above.
What taxes will you pay afterwards?
In addition to the ground charges (IBI) and the waste tax (Basura), there is also the non-resident tax that is calculated by the cadastral value. This amount differs per municipality. when you rent, the non-resident tax is replaced by 19% tax on your net rental income.
You can count on an IBI from 0.4 to 0.95% of the cadastro value per year, an equally high non-resident tax and 100-200 euros on home waste tax.
What if you sell?
Globally, you have to pay 19% on the profit, the difference between the purchase and sales costs, min the price for the work. Also your initial registration costs or paid VAT you can withdraw.
There is also temporarily held 3% to cover any debt, when you are selling and not a resident.
If there are no or few, or if there is no value added tax, you can recover it, but that can take up to a year.
What if you rent?
Also here you have to pay 19% on your net profit, the difference between the rental income and all the costs you make, such as IBI, basura, urbanization costs, water, electricity, your credit load, internet, TV, refractory works etc.
You can also cut off 3% of the construction value.
You will also have to submit a quarterly statement. Here our lawyer can act as a gestor and manage this for you.
Not every municipality gives a rental license!
If you want to start renting, we will go for you targeted projects with rental license.