Key Takeaway for US Buyers: When purchasing a brand new construction property or an off-plan villa directly from a developer in Mallorca, you do not pay the progressive Property Transfer Tax. Instead, you pay a flat 10 percent Value Added Tax (IVA) on the purchase price. Additionally, you must budget for a regional Stamp Duty […]
Key Takeaway for US Buyers: Yes, real estate commissions paid to a legally registered agency are highly tax-deductible in Spain, but specifically against Capital Gains Tax. When you hire our VIP Dedicated Buyer’s Agent Service, the fee you pay us is legally added to your property’s acquisition cost. When you eventually sell the villa, this […]
Key Takeaway for US Buyers: Opening a Spanish bank account as a US citizen before arriving in the country is highly complex due to strict international banking regulations and FATCA reporting. However, by utilizing a legally binding Power of Attorney, our VIP Dedicated Buyer’s Agent Service can bypass standard retail branches and open your non-resident […]
Key Takeaway for US Buyers: When a US citizen sells a property in Mallorca, they are subject to a 19 percent Spanish Capital Gains Tax on the net profit. Crucially, the Spanish government mandates a strict 3 percent withholding tax at the time of sale for all non-residents. With our VIP buyer’s service, we plan […]
Key Takeaway for US Buyers: While Spain does not have a specific tax officially named a «mansion tax» like New York or Los Angeles, the Balearic Islands impose a progressive Property Transfer Tax (ITP) that heavily targets high-value transactions, peaking at 13%. Furthermore, annual wealth taxes act as a recurring levy on high-net-worth assets. Our […]
Key Takeaway for US Buyers: Buying property in Spain does not necessarily trigger immediate US tax liabilities, but it triggers massive IRS reporting requirements. Under FATCA, you must report the Spanish bank accounts used to fund the purchase via the FBAR and Form 8938. If you generate rental income, it must be reported globally. Our […]
