Buying Property in Spain: Tax Deductions

Income Tax Deductions when

Buying Property in Cantabria

For anybody living in the Cantabria region of Spain and

therefore who is subject to income tax the fact that a number

of tax-breaks exist in relation to property dealings will no doubt

be of interest.

As is the case in general with regard to taxation matters,

there is quite a wide variation in the tax breaks available, with

each autonomous community applying those deductions

considered to be reasonable and beneficial according to the

regional government.

Spanish Property Law

The regional level exemptions available in Cantabria were

encacted by the parliament in Santander with the most

important provisions contained in Ley 6/2005, Ley 62/2008

and Ley 11/2010

The most important deductions available are as follows:

Purchase/Renovation of Property in areas of Depopulation

Purchasing or renovating a property in areas classified by

the regional government as areas of depopulation

The deduction is worth 10% of the invested amount up to

€300 a year or €600 if it is the principal personal residence

The deduction is restricted to one

For renting of the principal personal residence

A taxpayer can deduct 10% of rental monies paid in

respect of their principal personal residence up to a value

of €300 annually on condition that:

For renting of the principal personal residence cntd...

i) They are aged between 35 and 65 years of age (unless

they are disabled > 65%)

ii) The taxpayer's income may not exceed €22,000 (before

subtraction of mimimum personal exemption or that for

dependants) or €31,000 if joint declaration

For renting of the principal personal residence cntd...

iii) The amount of rent paid must be greater than 10% of

the taxpayers income

In the case of a joint declaration, the maximum deduction is

€600

Purchase of Principal Personal Residence

Where the tax payer purchases their princpipal personal

residence then in line with most other regions, this is no

longer tax deductible for those who earn more than €24,107

and rises to 15% with a limit at €9,040 for those earning

€17,707 or less.

Simply put, the property transaction process in Spain is

unique to this country with legal assumptions made

here that just don't exist elsewhere

Pitfalls Dealing with Property in Spain

If you would be interested in a free and comprehensive

guide that will help you to avoid the typical pitfalls the

foreign buyers of property fall into as well as dealing

with issues such as...

Guide to Dealing with Property in Spain

To find out how to deal with such issues as...

Which legal checks on a property

are vital to avoid any problems

The step-by-step process

of buying a property in Spain

As well as...

Typical ploys to watch out for

to avoid being defrauded.

Property taxes you pay and

those you don't!

And much, much more!

Download the myAdvocate Spain guide to Dealing with Property in Spain by clicking on:

Secrets to Dealing with Property in Spain

If you need legal advice in Spain but are concerned

about dealing with lawyers about which you have

little or no background information, then get peace

of mind at no additional cost by using the:

'Look before you leap'

Lawyer Verification System

myAdvocate Spain™

More information and contact:

www.myadvocatespain.com

info@myadvocatespain.com

Tel. +34 931 845 073