2024-09-28 09:19:06
Home for life, or not. Times have changed, and with them the real estate market. Every time it is more difficult to choose where to settle, because our lives can change at any moment: We move because of a new job offer, an illness, a child, etc. Nowadays it is common to go to the second house, or even the third, based on our needs instead of adapting what you already have. To cover this expense, we sold our current home to buy another, although for this, we have the first one tell us the tax to pay for our decision.
One of the most important is Tax on Capital Gains (ITVNU), known as municipal capital benefitthe tax that pays the increase in the value of the land experiences as a result of the transfer of ownership, they explain from iAhorro blog.
However, if we sell our home when we are over 65 years old, we will be exempt from paying the said taxjust as if we repaid the money received from the sale in the purchase of another house that is in normal use. That is to say, Capital gain will only have to be paid if the money received is used to invest in other types of property.
New home prices
Before moving to a new home, there are many costs that we will have to consider. If so new house, you have to pay VAT of 10% for those who buy on the peninsula and 6.5% for the Canary Islands. If it is a second-hand house, will have to pay the money Property Transfer Tax, which is between 6% and 10% of the property’s value.
Then we have to pay notary business (between 500 and 1,000 euros depending on the nature of the license and its length), the record (500 euros), management (400 euros) and Recorded Legal Actions Tax for new homes (between 0.5% and 1.5% of the home value).
Do not forget about the mortgage
Even though the previous house was sold, It is more than likely that we will have to rent our new home, a task that also entails a series of expenses, such as assessment (between 200 and 400 euros depending on the size of the property) and an open boarda payment that not all banks use, but that do, ranges between 0.5% and 1.5% of the amount that is supposed to be financed.
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