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Will I pay more tax if I purchase a property through an agent, as opposed to buying directly?
Tax Law
Antonio Flores Vila
12th of August 2002
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Q. I am buying a resale villa in Murcia (Bolnuevo). My question is: if I buy through an agent the tax would be 7% VAT, but what is the tax if buying PRIVATELY please? (A gestoria has been telling me it is still 7% but books say it is slightly less).
Barrie Avis
Redwick, S. Wales
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A. The taxes you pay in Spain when purchasing property are the same whether you are Spanish or foreigner and whether you purchase through an agent or directly from the owner. When you purchase a resale property, the tax attracted is 6% Transfer tax, and if you buy from a property developer or habitual trader, you are looking at paying 7% VAT plus 0.5% Stamp Duty.
Therefore, the intervention of real estate agents, lawyers or ´gestorias´ does not have any effect on the tax demanded by the Spanish Inland Revenue on the property transaction, and other information contradicting this is incorrect and misleading.
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