The Transfer Tax — If I buy, will I receive an additional tax demand from the Junta de Andalucia?

Although in 2012 and 2013 these additional tax demands for transfer tax (commonly called “complementarias”) have been less usual, it is important to know where they come from and if you can be asked for extra taxation when buying. First of all, I will briefly define what is the transfer tax and how is calculated to then explain why you may receive one of these “complementarias”.


What is the Transfer Tax?: As a buyer of a property in Spain, there is a tax over and above the property price that you will have to pay. Depending upon whether you are buying a new property from a developer, or a resale property from a private individual, you will either have to pay VAT & Stamp Duty, or a Transfer Tax (ITP). In this article I am going to talk only about the transfer tax. This tax applies if the property is deemed to be a second or posterior transfer (i.e. not the first time a newly built home is bought), and is paid by the buyer. The full amount of ITP tax has to be paid upon completion.

What are the rates for the tax?: The rates are different for each autonomous region. In our case, they have been fixed by the Junta de Andalucia as follows:

· 8% for transactions below 400.000 euros.

· 9% for amounts on top of 400.000 euros but less than 700.000 euros.

· 10% for the amounts exceeding 700.000 euros.


What is the base for the tax?: This is where the problem comes. The base for the tax is the maximum between the purchase price as declared on the purchase title deed and the tax value of the property. The first one is clear and that is the one that everybody states on its transfer tax declaration. The second one comes from applying a coefficient to the catastral value of the property. That coefficient varies on each of the councils of Andalucia and it is meant to adjust the catastral value to the market value of properties. The coefficients are published by the Junta de Andalucia at the beginning of each year.

How do I know if I am going to be asked for additional transfer taxation?: It is a matter of calculating the tax value of the property you are thinking on buying. If that value is higher than the purchase price, you will receive one of these “complementarias”.

How do I calculate the tax value?: As I said, by multiplying the catastral value, the one that comes on the IBI (council tax) receipt, by a coefficient. The coefficients for 2013 are 1,13 for Benahavis, 1,00 for Estepona and 1,27 for Marbella.

What was the problem in 2011?: That the same coefficient was 3,20 for Benahavis. Therefore, according to the Junta de Andalucia, the tax value in 2011 was approximately three times the one in 2013 so the tax value was always on top of the purchase price and additional tax was demanded.

* Since each particular case is different, it is fully recommended that you check your own numbers with your lawyer or tax advisor.