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Tax considerations when buying property in Spain

Tax Matters

This page is an advisory page only and represents our understanding of the current legal and business situation. Advice and opinions expressed here should never be used as a replacement for professional advice.

You need to discuss these matters with your lawyer.

You will be particularly interested in capital gains tax and inheritance tax, both of which can be very high.

A spouse in Spain cannot inherit without being taxed. And a spouse in Spain does not have automatic inheritance of a partner's assets.

Tax laws are different for residents and non-residents.

Tax rules are far too complex to go into here. You must seek professional advice, preferably before purchasing, to minimise your tax liability. Many purchasers with children actually buy the property in the children's names with the parents having permanent right to sole occupation until death.

Property Tax

Property in Spain is subject to an annual property tax. The tax authorities assess the value of your property and you pay a percentage of that value (it is not very high). Your lawyer can check this for you.

Buying property in Spain - First Steps - Choose your area

Decide on the type of property you want and see what is available

Calculate your budget and arrange finance

Arrange an inspection visit to see available Spanish properties

Making an offer on a property

Exchanging currency

Arranging a mortgage on your Spanish property

Legal matters

Deposit and completion

Tax considerations when buying Spanish property

Approximate costs when buying property in Spain


Mistakes to avoid when buying