Tax rises in the Balearics for 2016
by Ibiza-Legal
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As from the 1st of January, the Balearic Government has raised some taxes, affecting the Property Transfer Tax that has to be paid when buying a property, the Inheritance Tax and the Property Tax, amongst others.

The Property Transfer Tax (ITP in Spanish) is a state tax but it is collected by the Administration of each Autonomous Community (in our case, the Balearic Islands). It is the buyer who must pay it and it is calculated based upon the real value of the property.

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Cadastral and registration regularization
by Ibiza-Legal
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At the end of 2010, the Spanish government decided to update the Cadastral database.

This gave property owners in Ibiza the opportunity to regularize their situation and update previously undeclared property details in the Cadastre without being fined.

For this reason, the regularisation is also known as “Cadastral Amnesty”.

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Which costs are charged to the seller of a property?
by Ibiza-Legal
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If a resident or non-resident sells his Spanish property, this may mean he has made a profit and capital gain which he has to pay taxes on.

In principle the seller has to pay a capital appreciation tax (“Plusvalía municipal”), unless another agreement has been made with the buyer.

Such an agreement is however, according to the latest case law, only valid under certain conditions.

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