stevesainty

http://www.spanishpropertyinsight.com/2 ... goes+up+...

According to the above article the transfer tax for second hand property in Catalonia has increased from 8% to 10% from 1 August 2013.

The Valencia region has jumped onto the bandwagon and also increased ITP to 10% as soon as it can be written up.

Can anyone confirm or deny it please?

If it is true, when would the increase come into force in Valencia?

Fred James

Spanish Property Insight says it has definitely been increased in Valencia but I cannot find any reference to this in any of the Spanish newspapers.

The Valencian government met last week and discussed it but they don't seem to have made an actual decision. If they had you could be certain that there would be references to it in the press. There was heavy coverage of the actual meeting and all the papers referred to the potential increase.

The reason it is likely is that nationally the IVA on house purchase went up to 10% when all the new IVA changes were made earlier this year and the regions , who set the ITP rates, would like to use it as an excuse to raise the ITP to the same rate as you would pay on a new house.

Stella P.

http://www.costa-news.com/costa-blan...535-tax-hammer

Fred James

I have done a bit more searching and yes, it has been increased with effect from Tuesday this week when it was published in the official bulletin.

You can read it at

http://www.docv.gva.es/datos/2013/08.../2013_8347.pdf

They have also increased the transfer tax on vehicles from 4% to 8% and significantly reduced the previously generous IHT exemptions.

I am sure other regions will follow suit.

CapnBilly

Although they have reduced the IHT exemption, they have, if I have read it correctly, increased the individual allowances.

Fred James

Yes they have. The personal allowance for close relatives increases from 40k to 100k. Also the main home 95% relief which applies nationally in Spain normally has a maximum allowance of 122k - this increases to 150k.

The special 99% allowance that applied to the total inheritance (this only applies to habitual residents of the Valencian Community) is reduced to 75%.

There are some other minor changes but these are the main changes.

Porth

All governments are now hell bent on extracting as much as possible from those who are less able to withstand the pressure.

However here there is a brief reference to car/vehicle transfer going up to 8%

Whilst we are now most definitely going to return to the UK please just for the final nail in the coffin could someone explain the tax on vehicle basis?

I bought a car in France in 2007 and let us say it was at a cost of euros 32000 and I imported into Spain what is the cost to me for introducing it into the Spanish system? I paid the tax in France on purchase and the one off carte grise In France if one was to introduce a car from the UK or Spain into the country if you had a certificate of conformity and it passed the ITV when lights etc changed on the UK vehicle the total cost was 136 euros + the plates.

Here in Spain the 8% value is based upon the purchase value or current day value? If the former then I have to pay well over 2400 euros just to move from France to Spain. NO way Jose. I am moving a chattel from France to Spain paid the tax once and now expected to pay more tax on a depreciating asset. Where please Spain is the logic in all of that?

But of course in France motorway transport is not let us say inexpensive.

Fred James

The transfer tax of 8% only applies when you transfer the vehicle to a new owner and is based on the sale price but there are also official values that could be used if you tried to sell it for an artificially low price.

When you bring a foreign registered car into Spain you have, after a period, to register it on Spanish plates.

When you do that you have to pay a registration tax that is normally applied to new cars which is included in the purchase price but that also applies to used cars imported into Spain.

If you import the car at the same time as you become resident then this tax may be waived. If not it is based on the original price of the car when new, discounted for age, and the tax rate used varies from zero to 14.75% depending on the CO2 emissions.