Foreigners will be asked to pay retrospective tax on their Spanish property

Jan. 15, 2015

Foreigners will be asked to pay retrospective tax on their Spanish property

The Spanish authorities began to verify the real estate transactions concluded with foreigners over the past 4 years for understating the real cost of housing. Some expats are suspected of reducing property values in order to evade the Impuesto de Transmisiones Patrimoniales (ITP), Spain's equivalent of stamp duty. It is a percentage of the price, paid at the time of purchase, the Global Property Guide reports.

The final amount of ITP varies by region, and it's about 7% on average in Spain. In case of violations foreigners will be asked to pay more ITP.