When do I have to pay taxes when buying a house?

When are the taxes associated with buying a house paid?

According to the Tax Authority (AT), the taxes associated with buying a house - Municipal Property Transfer Tax (IMT) and Stamp Duty (DS) - must always be paid "before the acquisition is finalized".

This is because the purchase of buildings in national territory is always subject to the payment of these two taxes and both must be paid before the purchase is made.

In general, the IMT and IS must be paid on the day the documents for payment of the tax are generated or on the next business day, but always before the acquisition is completed," explains the AT.

For example, "if the document is generated on a Friday, you can pay it until the following Monday, inclusive. If Monday is a national holiday, it will be possible to pay until Tuesday".

However, young people up to 35 years old are entitled to exemption from these two taxes, currently. According to the AT, "the first acquisition of an urban property or an autonomous fraction of an urban property intended exclusively for own and permanent housing, carried out by young people aged 35 or under," subject to these requirements:  

• Do not be considered dependents for the purposes of article 13 of the IRS.

• The value that would serve as the basis for the settlement does not exceed €324,058 on the mainland and €405,073 in the Autonomous Regions.

• And do not hold ownership rights, or a partial figure of this right, over a residential urban building, at the time of transmission or at any time within the previous three years.

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