Transfer Tax on Resale Property Purchases Increases
The Spanish Transfer Tax and Stamp Duty (impuesto de transmisiones patrimoniales y actos jurídicos documentados) is a regional tax with a filing period of 30 days after the property purchase
Since January 1st 2012 the tax has increased abd any Spanish Resale Property Transfer / Purchase Tax Prior to 2012 in Mallorca if you were purchasing a resale property you had to pay a 7% Tax on the purchase price of the property. As of the 1st January 2012, the Tax on the purchase of resale properties up to 400.000 euro has risen to 8%, on the amount above 400.000 euro you have to now pay 9% and if you are buying for over 700.000 euro then the Tax on that amount rises to 10%. In essence Taxes on resale purchases have not decreased, but have in fact increased overall.
Mariano Rajoy explained that the Spanish Government will try to come up with a Budget for next year that enables Spain to meet its deficit commitments with the European Union and said “I hope we won’t have to take such difficult decisions as those we took in the first months of this legislature”.