Tax Legal Assistance on acquisitions and transfers of real estate

The purchase and sale of a home, in addition to the legal support necessary for the preparation of the corresponding deeds, is subject to different taxes and fiscal charges. What taxes do you have to pay when selling or buying a flat? Who is responsible for paying them? And, how are the gains derived from the sale of a property calculated for the purposes of the personal income tax return (IRPF)?

Often sellers and buyers of housing have doubts that are not few when it comes to knowing what taxes are imposed on a sale and to whom it is appropriate to pay them, as well as on the taxation of profits in the Personal Income Tax Return (IRPF).

Our professional team specialised in these transactions will assist you in your decision making when conducting a sale of real estate, through the following process:

  1. Advise in the first instance if the sale should be done through partnership or as an individual. If it is better to buy the shares of a company that owns a property in Spain or to buy the property directly.
  2. See the taxes levied on the operation depending on whether it is a new or second-hand home, local, rural or urban land, etc., ie it can be a transaction subject to and not exempt from VAT, subject operation and exempt, subject to the Tax of Patrimonial Transmissions in its corresponding scale, or reduced.
  3. Once the transaction tax (VAT or Property Transfer Tax) has been identified, we will advise you on the best way to carry out the purchase and sale with the lowest taxation, as provided for in the regulation of the various taxes. Example: you can opt for the option of acquiring a property subject to reduced Property Transfer Tax (2.00%) in compliance with certain requirements, you can waive the exemption from VAT on the transfer of a property, etc.
  4. An exhaustive calculation of the expenses inherent to a sale will be made: Notary, Registry, Lawyers, Commission Real Estate Agency, surplus value, and taxes (VAT, Property Transfer Tax, or Stamp Duty).

Throughout this process, our customers have the best advice to determining how to acquire or sell properties both in terms of direct taxation on the sale, as well as minimize the tax impact of the same (Inheritance tax and Donations).