FAQ about buying property in Spain

When buying a property in Spain, the buyer must pay several taxes and fees, which include:

• Property Transfer Tax (Impuesto sobre Transmisiones Patrimoniales, ITP): This tax is levied on the buyer when buying property on the secondary market and its rate depends on the region in which the property is located. In most regions of Spain, the tax rate ranges from 6% to 10% of the property value.
• Value Added Tax (Impuesto sobre el Valor Añadido, IVA): This tax is levied on the buyer when buying property on the primary market and its rate is 10% or 21%, depending on the type of property and the region in which the property is located.

• Tax on acts of legal entities (Impuesto de Actos Jurídicos Documentados, AJD). In most regions of Spain, the tax rate ranges from 0.5% to 1.5% of the property value.
• Registration fee: This fee is charged for the registration of real estate in the real estate registry and its cost depends on the region in which the property is located.

In addition to the above taxes and fees, there may also be additional costs such as notary and attorney fees.

The cheapest real estate in Spain is on the Costa Blanca, where the average price per square meter is 1,458 euros, in other regions prices vary.

For example, the average price per square meter in the center of Barcelona is 5,000 euros (3,000 euros outside the center of Barcelona), in Madrid - 5,300 euros (3,600 euros outside the center of Madrid), in Marbella - 4,600 euros (2 900 outside Marbella).

The average cost of renting a one-bedroom apartment:

• Barcelona City Centre: €1,039
• Barcelona surroundings: 820 €
• Center of Madrid: €1,015
• Outskirts of Madrid: 793 €
• Center of Marbella: 925 €
• Marbella surroundings: 833€

The average cost of renting a three-bedroom apartment:

• Barcelona City Centre: €1,769
• Barcelona surroundings: €1,305
• Center of Madrid €1,762
• Outskirts of Madrid 1,270 €
• Center of Marbella: €1,666
• Marbella surroundings: €1,733

In Spain, the income tax levied on companies and individuals is called "Impuesto sobre Sociedades".

For companies, income tax in Spain is calculated on the basis of their annual tax base, which is determined by deducting from the company's total income all direct and indirect costs associated with the business. The income tax rate in Spain is 25%, but there are special tax incentives and reduced tax rates for small and medium-sized enterprises.

For individuals, income tax in Spain is calculated based on their annual income. The tax rate depends on the level of income and can vary from 19% to 45%. Also in Spain there are various tax deductions and benefits that can reduce the amount of income tax.

It is important to note that Spain has double tax treaties with many countries, thus avoiding double taxation for individuals and companies that have income or business in Spain and other countries.

The most popular option for obtaining a residence permit in Spain is investment in real estate. The minimum investment amount is 500 thousand euros. You can buy several objects at once for this amount.

There are also no restrictions on the type of real estate - it can be both residential real estate (apartments, villas) and commercial real estate - hotels, office space, land plots.

• no need to live in the country;
• investment property can be rented out;
• European citizenship after 10 years;

• visa-free travel in the Schengen area;
• opportunity to work and do business in Spain;
• return on investment (sale of real estate) - for this you need to live in Spain for five years and obtain permanent residence status.