How the transfer tax is calculated

The payment of taxes is always a big headache for many Spaniards, especially on the dates when the Income Statement is approaching. However, it is not necessary for the declaration to be filed with the Treasury before having to deal with other taxes that must be processed on special and specific occasions. This is the case of the property transfer tax, which in this article of .com will explain how it is calculated.

Photo source: press.tucasa.com

one

The Patrimonial Transfer Tax is the one that we have to pay when the transfer of ownership is made in the following circumstances:

• Vehicle, whether land, sea or air, between two individuals, so it will usually be second-hand.
• Variations of capital in legal persons.
• Legal acts documented as bills of exchange, deeds or notarial deeds, among others.

two

To calculate how much we have to pay for this tax, first we have to know the tax base of it. It is equivalent to the value of the good that is the object of the transmission, in the case of vehicles, and of the same value plus the premiums in the case of variations in the capital of a company.

3

About the value of the transfer, we will have to apply the following taxes, depending on the circumstances and the type of property:

• Real estate : tax from 8% up to 400, 000, from 9% up to € 700, 000, and 10% for higher amounts. In the case of garages, the rates are the same but in fractions up to € 30, 000, € 50, 000, and more than € 50, 000 respectively.
• Movable property: generally 4% except for exceptions.
• Individuals: 1%
• Legal acts: varies between 0.3% and 2%, depending on the type of document in question.

4

Once we have applied the tax rate corresponding to the good that is transmitted, we will know what the amount of the tax is. To make it effective, we will have to present the 620 model in the corresponding Tax Agency office, with the documentation that identifies the two parties that make the transaction.