Taxes on Property Purchases in Aragon

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Slide 1:

Buying Property in Spain: Tax Considerations

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Taxation Rates When Buying Property in the Aragon If you are planning to have dealings with property in the Aragon region of Spain then you will be subject to the payment of sales tax.

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The specific rate payable will depend upon whether you are entitled to any deductions which are laid out in a number of different pieces of legislation enacted by the Aragonese Parliament relating to the area of property and taxation. Spanish Property Law

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Ley 4/1998 establishes that in standard transfers of property the rate of tax payable is 7%.This applies as much to the transfers of rights as to outright transfers of the property, excepting rights conferred by the creation of a mortgage on the property. Spanish Property Law

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Article 121(5) of Decreto Legislativo 1/2005 establishes a lower tax rate of 3% applicable where a 'large family' (as legally defined) purchases a property. Apart from fulfilling the main requirement of being a legally defined 'large' family, the following criteria must be satisfied: Initiatives for Large Families

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Initiatives for Large Families 1) The family must be a designated 'large family' within the legal definition 2) Within two years either side of having purchased the new home any prior home has been sold 3) The value of the home may not exceed €240,000

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Initiatives for Large Families 4) The new home must exceed the prior home by 10% in size 5) The purchasers may not have net income greater than €35,000 as a family group. This limit may be increased by €6000 for each additional child over the legally required threshold

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The concept of a large family in Aragon may be defined as follows: Normal – Where there are three or four children Special – Where there are five or more children Initiatives for Large Families

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The concept has also been extended to certain situations where a child is disabled or where the parents are divorced. Initiatives for Large Families

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If you would be interested in a free and comprehensive guide that will help you to avoid the typical pitfalls the foreign buyers of property fall into as well as dealing with issues such as... Guide to Dealing with Property in Spain

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To find out how to deal with such issues as... Which legal checks on a property are vital to avoid any problems The step-by-step process of buying a property in Spain

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As well as... Typical ploys to watch out for to avoid being defrauded. Property taxes you pay and those you don't!

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And much more... Download the myAdvocate Spain guide to Dealing with Property in Spain by clicking on: Secrets to Dealing with Property in Spain Or for further information on the property purchase process specifically go to: Spanish property lawyers

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Always make sure to get information on a Spanish lawyer’s professional background as well as the legal fees they will charge before you commit to using their services. consider this free service from myAdvocate Spain™: 'Look before you leap' Lawyer Verification System

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More information and contact details: www.myadvocatespain.com [email protected] Tel. +34 931 845 073