Tue. Apr 13th, 2021

Acquiring a home is an essential step on which many aspects have to be taken into account, and it is crucial to plan the amount of taxes that we will have to pay.

From now on, our starting point for calculating these amounts will be the fixed price and must be included in the deed of sale. If we are going to pay for the house a price lower than its real value, we will have to take into account that in that case, the Treasury will turn a complementary settlement for the difference.

Purchase of new housing:

In this case, we will have to pay the seller the amount of Value Added Tax (VAT), on the declared value of the property in the deed.
As buyers, we will have to pay the Tax on Documented Legal Acts on the declared value, or the type of lien established by the Autonomous Community in which the home is located.

Purchase of used housing:

In this case, we will have to take into account the Property Transfer Tax that is paid to the Autonomous Community in which the home is located. As it happened in the Tax on Documented Legal Acts in the acquisition of a new home, we will have to do it by means of the self-assessment of its amount in an official form and its entry into a Tax Administration account through one of the banking entities collaborators This amount is fixed by application of the tax rate on the value of the property in the deed or the type established by the Autonomous Community.

What taxes should we consider on the mortgage loan deed?

In this case, it is subject to the payment of the Tax of Documented Legal Acts, for a quota resulting from the application of the tax on the total amount of the mortgage liability, not the amount borrowed, if not the amount Amount that the mortgaged party has guaranteed for its return. Recall that the Autonomous Community may have established a different type of tax. Certain deeds of novation, subrogation as well as the cancellation of mortgage loans are tax exempt. Likewise, the Official Protection Housing generally have reduced tax rates.

Who manages the payment of taxes?

Payment of taxes, P​roperty Taxes Past Due obtaining self-assessment forms, calculating the fee, entering the amount and submitting the way with the payment made at the Tax Administration office, may be made by the buyer, interested party or person designated by him. In any case, as a buyer, you should keep in mind that, the place where the self-assessment form of the Property Transfer Taxes and Documented Legal Acts is presented is the Tax Administration of the respective Autonomous Community or, where appropriate, the District Liquidation Office in charge of Property Registrars.
The payment of the taxes of Patrimonial Transmissions and Documented Legal Acts must be done within 30 working days from the date the deed is granted or within the period established by the competent Autonomous Community. Delays carry surcharges. The payment of the taxes above is essential for the formal registration in the Property Registry.
To expand this information you can consult with us to know how to buy a home in Illinois.

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