Buying Property in Spain: Tax Deductions

Income Tax Deductions Buying Property in Asturias

Anyone with earnings in Spain is of course subject to income

taxes here. However a number of different tax deductions are

available and some of those are in respect of dealings with

property.

Typically there is a variation in the tax breaks available as between autonomous communities and so, in order to determine what deductions exist it is necessary to consider the issue at a regional level.

Spanish Property Law

The regional level exemptions available in Asturias were encacted by the parliament in Oviedo and in their latest form are specified in Ley 13/2010

The most important deductions are as follows:

Those with Disabilities

Purchasing or renovating a property to make the dwelling

appropriate for a disabled person

Where the property is to be the principal residential

dwelling

Either the taxpayer or their spouse,child or parent should

have a disabilty of > 65% to benefit from the tax break

Those with Disabilities cntd....

Deduction available is 3% of the value of the property up

to a maximum of €13,664

Purchase or renovation must be for purpose of facilitating

independence of a disabled person duly accredited by the

relevant department of Hacienda.

Disabled beneficiaries cntd.

If more than one person may avail of this tax break in relation

to the same disabled individual then the deduction is shared

equally although where one is more closely related to the

disabled person then only that person shall benefit

If the person availing of the tax deduction is not disabled then

their relative who is disabled must not be earning over the

IPREM. (In 2011 set at €7,455.14

Protected (Social) Housing

A deduction of €113 may be made by anyone purchasing

a property that is price-protected if it is destined to be the

principal private residence

Rental of the Principal Primary Residence

10% may be deducted from monies that are paid in rental

towards the taxpayer's principal private residence. The

maximum amount that may be deducted is €455. The

following provisos apply

The net income of the tenant must not exceed €25009 or, if

a couple, shared net income may not be over €35,240

Rental of the Principal Primary Residence cntd...

If the property being rented is located in an area designated

by the local government as 'rural' then the exemption

increases to 15% and the limit goes up to €606

Purchase of the Principal Primary Residence

This is being abolished in Spain for anyone earning over €24,107

A deduction will still be available for those earning less than this amount and the maximum base of €9,040 will only apply to those earning less than €17,707

The rate applicable is 15% up to the maximum of €9,040

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