Local municipal tax (plusvalia)
This tax is based on an officially assessed increase in the value of the land since the last time the property was sold. This can be quite small if purchasing an apartment, but expensive on a villa with a large plot, which has not changed hands for years. Find out the exact amount from the Town Hall. Do not confuse this tax with the vendor’s capital gains tax on his profit on the sale which some foreigners also mistakenly call by the same name (“plusvalia”).

In practice “who pays what” is negotiated prior to signing the Option Contract or Contract of Purchase/sale and this must be stipulated in that contract, as well as any listings of the contents/fittings to be included in the sale, when the owner accepts your final offer in writing.

In accordance with Spanish law, the purchaser is responsible for transfer tax or (I.V.A. + stamp duty when buying from a developer), plus Registration Fees and Notary’s Fees.