notarised documents <\/a>and may include the deed of sale, the mortgage and other documents related to the transaction.<\/p>\n\n\n\nStamp Duty rates vary in each autonomous region, in the case of the Balearic Islands it has a general tax rate of 1.5.<\/strong><\/p>\n\n\n\nTax on the Increase in Value of Urban Land (Capital Gains Tax)<\/h2>\n\n\n\n
The Tax on the Increase in Value of Urban Land,<\/strong> commonly known as capital gains tax, is another tax to consider when purchasing a property in Ibiza. This tax is based on the increase in the value of the land since the last transfer and is paid to the corresponding town hall.<\/p>\n\n\n\nThe amount of the capital gains tax is calculated based on several factors, such as the cadastral value of the land, the time elapsed since the last transfer and the tax rate set by each municipality. It is important to bear in mind that the capital gains tax can vary significantly depending on the location and length of time the property has been owned. It is therefore advisable to carry out a thorough investigation prior to purchase.<\/p>\n\n\n\n
Withholdings for non-residents<\/h2>\n\n\n\n
The Spanish Tax Agency (Hacienda) retains a 3% withholding from sellers<\/strong> who are NOT resident<\/strong> in the country, an amount that the buyer has to pay to the Tax Agency within the following 30 days. This withholding is considered a down payment towards the Wealth Tax arising from the sale of the property.<\/p>\n\n\n\nAre you still unsure about the costs of buying a home? Get in touch with us and we will be happy to provide you with all the information and advice you need.<\/p>\n\n\n\n