What about House Tax?

As in the UK, the situation can be complicated at times!

When you buy a property you will pay either Property Transfer Tax (for resale properties) at 6% or IVA (VAT) on new properties at a rate of 7% in addition to 0.5% stamp duty.

'Plus Valia' is a tax charged when selling a property. It is a local municipal charge based on the increased value of the land between purchase and sale. This can be small when selling an apartment but expensive on a villa standing on a large plot.

Capital gains tax can also be charged when you sell a property at up to 35%. Specialist tax advice should be sought as there may be ways to reduce the CGT significantly.

When you buy off-plan and sell before completion - you will normally avoid all the above taxes apart from IVA.

In summary, buyers of property are usually responsible for IVA or Transfer Tax plus your own lawyers charges (who usually also collects and pays the Property Registration fee and Notary cost).

Sellers of property are usually responsible for Capital Gains Tax, Plus Valia and any selling agent costs