IVA (VAT) rates in Spain

IVA is charged at 21% (from 1st September 2012) on most goods and services in Spain, but not everything gets hit with the full 21% and the situation is different for property.

Reduced rate ( 10% )

Passenger transport

Toll roads

Sporting events of an amateur nature

Exhibitions and fairs

Health products and equipment

Non-basic food products and water

Rubbish collection and treatment

Pest control

Wastewater treatment

Super-reduced rate (4%)

Books, newspapers and magazines (Electronic equivalents are taxed at the full standard rate).

Human medicine

Basic foodstuffs (bread, milk, cheese, eggs, fruits, vegetables, cereals and potatoes)

Exempt from IVA

Education provided by the state or licensed bodies

Tutoring on subjects that are included in the curricula at all educational levels

Sporting services provided by public bodies or associations

Cultural services such as museums, libraries, seminars and conferences

Artists, writers, composers and translators of artistic and scientific work

Insurance

Postal services

IVA / VAT on property sales

New property sales are charged to IVA at the super-reduced rate of 4%, but will move to the reduced rate of 10% on 1 January 2013.

Sales of land for property development are charged at the full rate

Secondhand property sales also attract a tax of of between 6% and 8% currently, but this is not actually IVA but is a transfer tax called Impuestos sobre Transmisiones Patrimoniales (“ITP”). ITP is not set at national level but rather autonomous community level.

Neither of these taxes is “stamp duty” as we know it in the UK. There is a form of stamp duty in Spain called AJD (Actos Juridicos Documentados) on all notarisation of documents. AJD is only payable on land and new property sales. The rate is a minimum of 0,5% of the sale price but can be up to 1% if the autonomous region so decrees, and most do.

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