The ITP (Property Transfer Tax and Stamp Duty) is an indirect tax that levies three taxable events:
- Transfers of goods or assignments of rights to use goods “inter vivos”.
- Operations involving the formation of companies, capital increases or reductions, mergers, among other common operations in the business world.
- Documented legal acts, taxes the formalization of certain commercial and notarial documentation.
Once we know what the acronyms ITP and AJD, let's focus on the main changes to this tax in Catalonia, which came into effect on 31/03/2017 with the amendment of Law 5/2017, of March 28.
| Before the reform |
After the reform |
| The transfer of real estate, as well as the constitution and decision of real rights over them, were previously taxed at a fixed rate of 10% in the modality of Onerous Property Transfers (TPO) of the ITP-AJD. |
The article is amended Article 32 of Law 25/1998, of December 31, and it remains as follows:
The transfer of real estate, as well as the creation and termination of real rights over it, are subject to taxation:
| Price From |
Full fee (euros) |
Remaining value up to |
(%) |
| 0 |
0 |
1.000.000,00 |
10 |
| 1.000.000,00 |
100.000,00 |
From now on |
11 |
|
| Real estate transfer transactions in which the VAT exemption is waived are subject to the Documented Legal Acts (AJD) modality of the ITP-AJD
The AJD tax rate in these cases was 1.8%. |
Letter b is modified Article 7 of Law 21/2001, of December 28, and it remains as follows:
All real estate transfer transactions in which the VAT exemption is waived, with a start date from 31/03/07 onwards, must apply the tax rate of 2.5%. |
In addition to the changes outlined above, the law introduces the following two bonuses:
(Article 147 of Law 5/2017, of March 28)
- Housing rental contracts in the public housing stock intended for social rental enjoy a 99% discount on the property transfer tax.
(Article 148 of Law 5/2017, of March 28)
- For the purposes of section 1, public housing units intended for social rental are those assigned to the Housing Fund for social rental policies coordinated by the Housing Agency of Catalonia.
Finally, we see that there are changes regarding the provision of tax information:
- Article 21 of Law 5/2007, of July 4, is amended (this article reflects the obligation to present documents for the purposes of ITP AJD and ISD).
- The Article 29 of Law 31/2002, of December 30, resulting in the following:
- “Natural or legal persons who conduct auctions of goods must submit to the Catalan Tax Agency, in general and in the manner and within the time limits determined by the order of the head of the department responsible for finance, information on the transfers of goods in which they have acted as intermediaries on behalf of others, when the transferor is not acting in the course of an economic activity. This information must be provided for transactions in which goods have been awarded through an auction as well as for any other type of transaction, including cases of direct award.”
Francisco Romero
Fiscal Area.
Do you have any questions about this topic?
Our team of expert advisors will help you resolve any issues related to our services.
Contact us now
With a degree in Business Administration and Finance, he combined his work as a consultant in the tax and accounting department of Gestart Assessores with his studies for ten years, primarily a degree in Business Administration and Management from the University of Barcelona. In March 2017, he joined Àmbit Assessor, SL as a tax and accounting consultant.
Latest posts by Francisco Romero
(see all)
Related
