In the middle of the Income Tax campaign, which ends on June 30, there are many taxpayers who have not yet filed their return and who are still asking questions to avoid making mistakes when presenting it.
And one of the big questions that flies over the heads of many homeowners now is what are the real taxes that affect an owner when buying a home, or what is the fiscal impact of having a second home.
Given the latter, Treasury official Roberto Gómez Rubio issues a clear warning. “If it is a second home that is empty, it is taxed by imputation of income,” he says. This concept, which usually generates many doubts, involves the payment of a tax calculated as 2% or 1.1% of the cadastral value of the property, a measure with which the Treasury can fine owners who do not meet certain requirements.
The Treasury technician indicates that many people do not really know the fiscal impact that the purchase or ownership of a second house or apartment can have, this being generally very high due to the large amount of taxes that must be faced.
In a LinkedIN post, Roberto Gómez clarifies some key concepts about the taxes that affect real estate from the moment a home is purchased until it is declared.
The huge entry costs when purchasing a property
When purchasing a home, the tax burden varies significantly depending on the type of property purchased. Thus, if it is a new construction home, the buyer must pay a VAT of 10% plus the dreaded Documented Legal Acts (AJD).
However, for second-hand houses the story is different, since the main tax that must be faced is the Property Transfer Tax (ITP), whose tax rate varies between 4% and 10% depending on the Autonomous Community in which we are located.
Day to day: habitual residence, rental and second homes
Likewise, while you are an owner, taxation depends only on the use we give to the apartment. Generally, the habitual residence is exempt from personal income tax tax, including the garage and storage room as long as they were acquired in the same original deed. But be careful, because Gómez warns of a very common trap: “If the garage or storage room is acquired later, even if it is where they usually reside, it will be taxed as an allocation of income.”
On the other hand, in the case of using the home for rental, these incomes are considered returns on real estate capital. Furthermore, the good news is that a general reduction of 50% is applied to the net return and the deduction of related expenses such as the community, supplies or the receipt of the IBI is allowed. Although this market also faces new regulations, since from 2030 a new requirement will be mandatory to sell or rent a house.
So what about beach or town houses? Owning a second residence without renting has direct tax consequences. And, as the expert bluntly warns: “If you have a second home, the income allocation is taxed as long as it is empty.” In addition, owners today face other major added concerns, such as the fear of squatting in their second home, a problem that adds a lot of complexity to the management of these properties.
Clear accounts when selling and avoiding scares
Finally, at the time of getting rid of the house, the operation generates a capital gain or loss that is calculated by the difference between the transfer price and the initial acquisition price. If there is a gain, it is taxed directly on the tax base of the personal income tax savings. However, the law also contemplates some important exemptions, such as the sale of the primary residence for people over 65 years of age or when the amount is reinvested in a new primary residence.
The Treasury warns those who signed their mortgage before 2013: they may lose the deduction for habitual residence if they change loans without meeting this requirement
The Treasury clarifies that appearing on the mortgage of a rented home does not give the right to deduct its expenses if you are not the owner
To all this calculation, in addition, we must always add the famous Municipal Capital Gains (IIVTNU), which taxes the increase in the value of the land. For all this, the Treasury technician concludes that it is essential “to do good planning in order to avoid fiscal surprises”, since, in his own words to round off the matter, “a small change can have important fiscal implications.”