IVA on property transactions
 

Hi
I was wondering do any of you wise people know if the current increases in Iva proposed to come into effect on 1st Aug affect the current property transaction IVA ?

Regards
Al

Re: IVA on property transactions
 

found this elswhere, but says here from 16th Juy.



The Spanish Government has announced IVA/VAT rate changes from Monday 16th July 2012


The 4% rate – to be kept at 4%
This is applied to items considered to be of basic need. It includes basic bread, frozen dough, eggs, cheese, milk, beans and fruit and vegetables.
Books, magazines and newspapers.
School material with the exception of electronic items.
Medicines for human use.
Vehicles for the disabled, wheel chairs and collective transport for the disabled.
Prosthesis and implants.
Official protection housing.

The 8% rate – to increase to 10%
Foodstuffs in general, with the exception of those in the 4% band, soft drinks.
Animals destined for human consumption or breeding.
Items used in agricultural, farming and forestry activities, such as seeds and fertilisers.
Contact lenses and glasses.
Disabled lifts and items for the diagnosis of illnesses.
Health assistance services, social services, and dental work.
Imported artworks and antiques.
Hairdressing.
The handing over of housing, including garages and annexes.
House construction (between promoter and contractor).
Services supplied by artists and technicians.
Sports, cultural and recreational services, exhibitions and fairs.
Funeral services.
Hotel and restaurants, cleaning of streets and public gardens.
Rubbish collection.
Transport of passengers and motorway tolls.

The General Rate – now 18% is to rise to 21%
All other products, including alcoholic drinks, tobacco, animals used in bullfighting, agricultural machinery.
CD’s.
Devices for the diagnosis and monitoring of pregnancy.
Television and radio services.

Re: IVA on property transactions
 

Here is a thought:
IVA is charged on new properties and has risen to 10% (we think, although there were reductions to 4% to help kick start market and help banks offload)

There is no IVA on second hand properties - it is a transfer tax, which does not seem to have been increased (yet?) currently it is 7% but can vary by region.

Although these taxes might seem high to Brits they are still low compared to other countries where purchasing property is subject to high taxes like France for example.

Re: IVA on property transactions
 

I thought property tax was 8% throughout Spain:confused: How much is it in France? In the UK it's nil under 125,000 and rises to 4% for 500,000+. In the USA it's only 1% to 2%

Re: IVA on property transactions
 

Things are changing almost by the day at the moment but VAT/IVA in France on new property is 19.6%. (According to http://www.globalpropertyguide.com/E...e/Buying-Guide )

It looks like 'Holiday homes' are to be targetted in France with higher taxes for owning/renting out.

In Spain I think the transfer tax ranges 7-8% dependent upon location.
(BTW Tax relief on mortgages in Spain also under threat.)

Yes the UK is cheap in comparison tax wise - it's just the running costs! (Council tax)

Re: IVA on property transactions
 

Plus another 1-2% every year in some sates

Re: IVA on property transactions
 

I think it's even higher in Andalucia as it also depends on the price of the property.

Mortgage tax relief has definitely been chopped again (for new mortgages).

Re: IVA on property transactions
 

Thank you learned amigos, panic over.

I have been getting some excellent rates for transfer of sterling, I did not want it mopping up with extra taxes.

Regards
Al

Re: IVA on property transactions
 

Fred - yes you are spot on as always, by co-incidence the rates were in our local paper this morning (Don't ask why, we are in Alicante province) In Andalucia it ranges from 7 - 10% for resales properties.

In the past you could usually reckon on 10% to cover total (Notary, tax, land registry etc) buying costs for all deals. But not any more.

Re: IVA on property transactions
 

http://www.typicallyspanish.com/news...le_35281.shtml

apparently been put back to September 1st:)

Re: IVA on property transactions
 

Appears to be some interesting moving of rates from low to higher bands though