At what point during the purchase of a house do I have to pay taxes?
When buying a house, two taxes must be paid: The Municipal Property Transfer Tax (IMT) and the Stamp Duty Tax (IS). But when do they need to be paid?
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 (IS) - 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 finalized.
Understand better: IMT and Stamp Duty: Learn about the two taxes associated with buying a house
"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 finalized," 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, you can 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, made by young people aged 35 years old or younger", under these requirements:
- Do not be considered dependents for the purposes of article 13 of the CIRS.
- The amount 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 be holders of property rights, or a partial figure of this right, on an urban residential building, on the date of transmission or at any time in the three years prior.
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