Tax rate on company operations and stamp duty

Tax rate on company operations and stamp duty “ITP and AJD in Spanish” is defined as the amount that the taxpayer must pay.

The tax quota is determined as follows:

In company operations: the type of tax to be applied is 1%

As a general rule, in company operations the tax rate to be applied is 1%, but there are several exceptions. In some operations the tax rate will be zero, but a tax submission must still be made.

Exempt company operations:

A. Constitution of companies.

B. Capital increase.

C. Contributions made by partners that do not involve a capital increase.

D. Transfer to Spain of the headquarters of the effective address or of the registered office of a company

when neither were previously located in a Member State of the European Union.

In stamp duty

A. A tax rate of 1.5% will be applied,

to the first copies of deed and notarial acts when they concern valuable things or assets, contain acts or contracts inscribable in the land registry (“Registro de la Propiedad in Spanish”), companies house (“Registro Mercantil”), industrial property registry (“Registro de Propiedad Industrial”) and the registry of movable property (“Registro de Bienes Muebles”).

B. A tax rate of 0.3% will be applied,

to the purchases of the habitual residence when the real value of the property does not exceed € 130,000. This only applies to taxpayers under 35 years of age.

C. A tax rate of 0.1% will be applied, 

in the acquisition of the habitual residence, when the real value of the property does not exceed € 180,000 and the acquirer has a disability of 33% or more.

D. A tax rate of 0.1% will be applied,

for notarial documents that formalize the constitution and cancellation of real guarantee rights (derechos reales de garantía), when the taxpayer is a reciprocal guarantee company “sociedad de garantía recíproca” with registered office in the region of Andalusia.

E. In the case of bills of exchange (letras de cambio) will be applied the tax scale established in the law.

 

Do not hesitate to contact our law firm in Marbella if you have any questions regarding the Andalusian tax rate on company operations of transfer tax and stamp duty or at the time of buying a property. Our team of expert lawyers will be happy to advise you and carry out all the relevant procedures of the purchase.