New Law for Real Estate Taxation in the Canary Islands

Compared to other Spanish regions, tax rates on real estate in the Canary Islands are remarkably favorable. So, the total extra costs for buying property remain relatively low, around 10% of the purchase value.

The transfer tax on real estate constitutes the largest part of the costs when buying property on the Canary Islands. The rate depends on whether you buy a newly built or a second-hand property. If you are buying a new property in the Canary Islands, you will pay 7% IGIC (General Indirect Tax of the Canary Islands) + 1% of the purchase price. If you are buying a second-hand home, the rate is 6.5% of the purchase value.

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