Majorca Property News

Real estate transfer tax for Mallorca real estate is on 01 May 2012 increased

To meet the deficit targets for the year 2012, the government of the autonomous region of  the Balearic Islands plans to increases several tax measures.. Among other things, the real estate transfer tax increase.

This tax was previously standard 7% and is to be differentiated in accordance with a replacement value.

 

     Properties up to 300.000 € - here is the tax rate as before, at 7%

     Property 300000-500000 € - are taxed at 8%

     Property 500000-700000 € - are taxed at 9%

     Properties of more than 700,000 € will be taxed at 10%

 

Since the government has a comfortable majority in parliament, the scheme on 02 April is decided and valid for notarial certifications from 01 May 2012 on.

It should be noted that the percentage of taxes calculated according to the different field levels. An example: Purchase Price 500.000 €, the first 300,000 € 7% fall in taxes on the next € 200,000 are 8% of taxes due.

 

Not affected by this regulation is the control that comes with the first sale of a new property due. In this case, so no real estate transfer tax but a value added tax (VAT) is levied. The last year was still 8% and was reduced for the year 2012 by 50% to 4%.