The purchase and sale of real estate is an operation that can have important tax consequences for both parties. In Catalonia, there are taxes levied on the sale and purchase of real estate and it is important to be aware of them.
Firstly, it should be noted that the purchase of real estate is subject to Transfer Tax and Stamp Duty (Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos Documentados, ITP-AJD). This tax is levied on the transfer of goods and rights, and its tax rate varies depending on the autonomous community. In Catalonia, the general ITP-AJD tax rate is 10%, although there are reductions in certain cases, such as in the sale and purchase of homes for young people.
In Catalonia you must also pay the Tax on the Increase in Value of Urban Land (IIVTNU), commonly known as the "plusvalia municipal", which is paid by the seller. This tax is levied on the increase in value of urban land from acquisition to transfer, and its tax rate varies according to the municipality. There are two ways of calculating the municipal capital gains tax and the taxpayer is free to choose the method that is least harmful to him.
On the other hand, if the sale of property is between private individuals, it is also necessary to settle the Personal Income Tax (IRPF). In this case, the seller must declare the capital gain obtained in the sale, which is calculated by subtracting the acquisition value of the property from the transfer value. It is important to note that there are tax reductions in certain cases, such as the sale and purchase of the primary residence.
Lastly, if the purchase and sale of real estate is carried out through a company, Corporate Income Tax (IS) must also be taken into account. In this case, the gain obtained in the sale will be included in the taxable base of the IS, and the corresponding tax rate will be applied.
In conclusion, the sale and purchase of real estate in Catalonia is subject to different taxes that must be taken into account by both parties. It is important to be aware of them in order to plan the transaction properly and avoid unpleasant surprises. If in doubt, it is always advisable to consult an expert for personalised advice.