New taxes in Spain due shortly!

El Consell de la Generalitat (the Valencian Autonomous Government) has just drafted a Bill where property Transfer Tax (tax which is paid for purchasing properties) will be increased by 1 %.

Instead of paying 7% for re-sale properties in Valencia, purchasers will soon have to pay 8% property purchase tax in Valencia.  The purchase tax on new properties, however, remains at 4%.

Also included in the draft bill is the Wealth Tax which will have to be re-introduced this year (2012).

Originally, the Wealth Tax in Spain imposed by Spanish Central Government was to be re-introduced for 2011 and 2012 BUT the Valencian Autonomous Government decided to approve a 100 % tax allowance on any tax. Now, as the Valencian Autonomous Government struggles with financial problems, they have been forced to cancel the tax allowance.

Please note that presently this is only a draft bill – but it is likely to come into force in shortly.

Carolina Just Miró