TAXES GUIDES
PURCHASE TAXES GUIDE
Understanding property purchase taxes in Altea
Understanding property purchase taxes in Altea
What taxes are expected when buying a property in Altea?
Who should pay the purchase taxes, how much, when and how?
These are frequent questions we have encountered when helping clients. To help, we have created a straightforward guides for all on property tax in Altea.
At ALTEAINVEST we have the necessary -and accredited- training and experience of more than 45 years that will guarantee you effective help when buying or selling your home in Altea and plan your taxation in the best possible way to reduce (legally) the amount of your taxes and avoid possible penalties.
Clear and simple answers to guide you through the process:
There are different types of taxes when buying a property in Spain, depending on the type of property and who the seller is.
+ Second-hand property sold by a private individual
+ Newly built villa or apartment sold by a builder/developer
This FAQ covers the essential information about ITP for second-hand property transactions in Altea, including rates, calculation basis, exemptions, payment procedures, and deadlines.
The deadline to pay the tax is within 30 days after signing the public deed of sale.
This FAQ provides clear answers about VAT and Stamp Duty for newly built properties sold by developers, with details focused on the Valencian Community.
Buyers must pay Value Added Tax (VAT), generally 10% of the purchase price.
Yes, Stamp Duty (known as Actos Jurídicos Documentados, AJD) may also apply.
The AJD rate usually ranges between 0.5% and 2% in Spain. In the Valencian Community, including Altea, the rate applied is 1.5%.
The purchaser of the property is responsible for paying the Stamp Duty.
Stamp Duty must be paid within 30 working days from the date of signing the public deed of sale.
This FAQ provides clear guidance on the option and benefits of paying VAT instead of ITP on certain used property purchases in Spain.
Yes, in some cases, buyers can choose to pay VAT (Value Added Tax) rather than ITP (Property Transfer Tax) on a used property purchase.
It may be in the buyer's interest because VAT can sometimes be deducted depending on the activity or use of the property, potentially reducing overall tax costs.
No, paying VAT instead of ITP is subject to specific conditions and is not applicable to every used property transaction.
The buyer’s eligibility to deduct VAT depends on how the property will be used commercially or for business activities.
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