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The tax rate on the real estate purchase in different regions of Spain

The tax rate on the real estate purchase in different regions of Spain

The tax rate on the real estate purchase varies significantly in different autonomous regions of Spain. For example, when you buy property in Madrid, you pay less tax than on Ibiza Island. In some regions taxes have increased significantly in recent years, while in others they have declined. Let’s compare tax rates on the real estate purchase in different parts of Spain.

Andalusia

In Andalusia the tax rate ranges from 8% to 10% depending on the value of the property. In some cases the rate can be 3.5%, provided that the borrower is up to age 35, physically challenged or a member of a multi-child family. Each case is considered individually.

Aragon and Asturias

Aragon and Asturias also decided to set the tax rate in accordance with the value of the acquired property. The minimum rate is 8%. Housing under state protection is also exempt from taxes.

Balearic Islands

The Balearic Islands have a special tax treatment. If the property is going to be a permanent residence of the taxpayer and if its value is less than 200,000 euros then it is taxed at a rate of 5%. In other cases the rate increases significantly. If the property is not intended for permanent residence the tax can reach 11% depending on the purchase price. It is worth noting that garages are treated as a special type of real estate therefore they have different taxation.

Canary Islands

The Canary Archipelago sets a total rate at 6.5%. This is one of the regions where the tax rate is reduced to 5%, provided that the price of the property does not exceed 150,000 euros and the property is going to be used for personal permanent residence.

Castilla La Mancha

The general tax rate in Castilla La Mancha is 9% but if the borrower has a permanent residence and complies with certain requirements the tax rate may drop to 6%.

Castile and Leon

In Castile and Leon the tax is 10% of the real estate value if the value exceeds 250,000 euros but the total rate is 8%. Property may be taxed at a rate of 4% for multi-child families, physically challenged people or buyers up to age of 35. But in these cases there is going to be a strict checking for compliance with certain conditions and requirements.

Catalonia

In Catalonia if the property value is up to 1 million euros the tax rate is 10%. If the property value is more than 1 million euros the tax rate is 11%. Once again there are lower rates for physically challenged people, multi-child families and when you acquire housing which is under state protection.

Extremadura

Tax rates range from 8% to 11%. If the property value exceeds 600,000 euros the tax is 11%. This is the highest rate in Spain. The tax rate is reduced, provided that the property is going to be used for personal permanent residence.

Galicia

The general rate is 10%, which is quite high, but for multi-child families, physically challenged people and people under the age of 35 who are buying property for personal residence for the first time the rate is reduced to 3%.

Madrid

This is one of the autonomous regions where the tax rate is very low. It is set at 6%. Not to mention that for multi-child families the rate is reduced to 4%.

Murcia

The general rate is set at 8% but there are also lower rates for multi-child families, borrowers under the age of 35 and physically challenged people.

La Rioja

The tax is 3% subject to compliance with certain requirements. The general rate is 7%.

Valencia

It has one of the highest tax rates of 10%. There are bonuses for physically challenged people and multi-child families.

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