ITP Comunidad Valenciana property transfer tax

Everything You Need to Know About ITP Comunidad Valenciana

If you are planning to buy a property in Spain, understanding how the ITP Comunidad Valenciana works is essential. This property transfer tax represents the most significant cost after the purchase price itself for any buyer in the region.

What is this tax and when should it be paid? 📍

The transfer tax (known as ITP) is the levy applied to the purchase of resale properties between individuals. It should not be confused with VAT (IVA), which only applies to brand-new buildings.

After signing at the notary, you have 30 business days to settle this tax with the regional tax authorities. A late payment of the ITP Comunidad Valenciana can lead to significant surcharges and late interest fees. 📅

Calculation of costs and annual taxes 📈

Currently, the general rate applied in the region is 10%. This calculation is based on the acquisition value or the cadastral reference value of the property.

Practical example for a 150,000 euro purchase:

For a house at this price, the standard ITP Comunidad Valenciana to be paid would be 15,000 euros. 💸
In addition to this one-time tax, remember the annual property tax (IBI), which for this price usually ranges between 400 and 700 euros per year depending on the municipality. 💶

Available tax reductions 💡

This is where most buyers can save money. The law provides for several cases where the rate can drop drastically below the standard 10% of the ITP Comunidad Valenciana.

There are specific benefits depending on your personal profile or family situation that can significantly reduce the total tax burden. 💰

If you want to know everything there is to know about the reductions applicable to certain cases and discover if you meet the requirements to pay the legal minimum, do not take risks. Poor management of your tax file can cost you a lot of money. ⚠️

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