The most important tax for housing is the Property Transfer Tax (ITP). In this case, the amount depends on the percentage that is applied on the deeded price and the autonomous community in which the house is located, although as a general rule a rate of between 6% and 10% is applied.
However, for VPO housing, large families and young people there are usually reduced rates.
For example, in Madrid large families who buy to vacant home will pay 4% of ITP on the deeded price provided that the house purchased is the inhabited one.
These rates currently apply:
In the case of Andalusia, the ITP is 7% only until December 31, 2022, although it is possibly a measure is extended by the Andalusian Government.
It should be noted that for VPO housing, large families, people with disabilities and young people there are usually smaller rates. For example, in Madrid large families who buy a free home will pay 4% of ITP on the deeded price, provided that the house purchased is the occupied one.
The agency, an optional expense
The only optional expense of the sale of a home is that of the agency, the entity that the client can contract to process the settlement of taxes and perform other paperwork. They are free professionals, so in this case there are no specific rates, and they are usually hired only when a mortgage is opened to acquire the property. Its approximate cost is usually 300 euros.
What taxes are paid for buying a home before 2022
Whoever buys a used home before the end of the year must pay the ITP based on the purchase price, the price deeded in the purchase contract. As of January 1, 2022, it will be based on the reference value of cadastre.
Thus, buyers of second-hand homes will be able to pay taxes on the value of the deed as has been done until now. And if the regional administration on duty does not agree, it may initiate the famous verification of values to determine the value of the property according to any of the methods provided for in article 57.1 of the General Tax Law.
