Buying Spanish land – legislation and taxes
The amount of tax payments when buying a land plot is a value that depends on a number of factors: cadastral value of land, status of the seller (legal entity or individual), the amount of tax in the Treasury (IAJD), which differs in different autonomous communities. If a land plot is acquired from an individual, only the Property Transfer Tax (ITP) is payable, the amount of which varies from 6 to 10% of the value of the land plot in different autonomous communities. In Madrid, for example, 7% would have to be paid, while in Catalonia, 10% would have to be paid on top of the documented amount transferred by the buyer to the seller for the land purchased.
- If the land is purchased from a legal entity, there will be more payments:
- VAT will be 21%;
- IAJD tax to the Treasury – from 1% (so, in Catalonia it is 1.5% of the price of the land).
Thus, buying land from a private person, the investor pays an additional 6-10% tax, but if the seller is a legal entity, the tax expense will be from 22% of the price of the land. Other Spanish laws relating to land transactions prescribe the following:
- Equal conditions for residents and non-residents to buy land;
- Prohibition on the purchase of land located less than 150 meters from the edge of the sea (these lands are in state ownership), in some regions it is not 150, but 100 meters;
- Residential buildings can only be built on those plots of land on which this is permitted.
This is all the restrictions. They are very few, Spanish law and here we can call very friendly to foreigners. So you can already go to https://yes-mallorca-property.com/ and find there exactly the property that you like. At the moment, buying property in Spain is very easy, so you can always pay more attention to this issue. In the end, you will have the chance to buy a great property, which can be used as you want.
The procedure for buying land in Spain
To buy land in the suburbs of Barcelona or any other region, you must take a series of consecutive steps. The algorithm of actions is almost no different from the steps to be taken to buy a ready-made house or apartment.
- Determine the purposes for which you will buy the land (think in advance whether you want to organize your business in the future – cafes, hostels, hotels, bars, restaurants, galleries, etc.);
- Choose your favourite regions of the country;
- Find a reliable real estate agency, check out the offers;
- Go to Spain, check out all the land options on offer;
- Check the legal clarity of the land – no encumbrances, no debts, etc. (reliable agencies do not offer these options);
- During your trip, apply for an NIE (foreigner’s personal number), open a bank account;
- Once you have made up your mind, draw up a contract with a notary;
- Register the land you bought, pay taxes and fees.
Professional real estate agency helps at all stages of buying land in Spain. Specialists will help you navigate and correctly set priorities, organize the purchase correctly and comfortably. Land in sunny, plentiful and hospitable Spain is waiting for you. So it is best to immediately contact a specialized company that will be ready to provide you with assistance in such matters. If you really want to buy land or real estate in Spain, then you just need to pay attention to specialized agencies that can help in this matter. This way you will have a chance to quickly find a great land plot that will be a great solution and will allow you to reach a new level in this matter. Buying land in Spain is not that difficult, you should just try to find competent helpers who will be excellent in this matter.