IBI | Inheritance Tax | ITC -Stamp Duty

GLOSSARY OF CONVEYANCING IN SPAIN > Index

Buying and selling property in Spain often means having to turn your hand to a wide range of things.
Each of them uses terms and abbreviations that can be difficult to understand.
We hope this glossary will give some plain English explanations to some of the most common
conveyancing terms.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Please, select the first letter of the word from the list above to jump to appropriate section of the glossary

IBI(ANNUAL REAL ESTATE TAX): This tax is very similar to the local rates or community charge that you pay to the local authorities in your home country. All property owners, both resident and non-resident, have to pay the tax annually to the local administration that covers the area where the property is located.
*Please, go to our Conveyancing Guide for more details. CLICK HERE

INHERITANCE TAX: This tax is payable on inheritance of property by spouses, children or any other party who receives part of the deceased’s Spanish estate. Spanish law provides that property registered in joint names is deemed to be held on a 50-50 basis and therefore on the death of one partner the surviving spouse inherits the deceased spouse’s 50% share.
*Please, go to our Conveyancing Guide for further info. CLICK HERE

ITC (STAMP DUTY): ITC (Impuesto sobre Transmisiones Patrimoniales) is roughly equivalent to UK Stamp Duty and is levied at between 6% to 7% of the purchase price depending on the Autonomous Region (Comunidad Autónoma) involved. However, it should be noted that the above does not apply to newly built properties but just to privately owned or resale properties. The tax is paid by the buyer after the final exchange of contacts to the Tax Collection Agency (Agencia Tributaria).

IVA (VAT): Value Added Tax (Impuesto sobre el Valor Añadido or IVA) and documentary stamp duty (Impuesto sobre Actos Jurídicos documentados or IAJD): These taxes do apply to newly built properties and are paid the first time a property is sold normally by the developer (comprador) of the property. The IVA rate is 7% of the selling price and the IAJD is fixed between the 0.5% and 1.5% of the selling price depending on the Autonomous Region (Comunidad Autónoma) involved. If a deposit is given before signing the Sales Deed (Escritura de Venta) a 7% IVA tax will apply. IVA and IAJD are paid directly by the seller to the Tax Collection Agency (Agencia Tributaria).

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