If you are a “non-resident” (=you are not a taxpayer in Spain), 3% of the price will be deducted at the notary’s office. The value added tax is 21%. If this is lower than the 3% that was deducted from the sales price at the notary’s office, you can start a procedure to claim back the difference. For example, you bought a property for €200,000 and sell it at later date for €300,000. During the exchange of contracts in the notary’s office a cheque will be written for 3% of € 300,000 (= €9000) The value added tax is 21% of €100,000 (= €300,000 – €200,000) = €21,000
This 3% is not deducted at the notary’s office if you are “tax-resident”. However, you will receive a tax demand for the 21% instead.
Plusvalia tax. This is a local tax payable to the municipal council. This is based on the added value of the land (since purchase).
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