2. Reducing Your Income Tax Bill Buying Property in Cataluña Many people who have chosen to call Barcelona home have decided to buy a property or at least rent one. If they pay income tax here then they could well be in line for a tax rebate.
3. The responsibility for setting local tax exemptions lies with the regional parliament of Cataluña in Barcelona. These are typically applicable in addition to any state level tax exemotions that are available. Spanish Property Law
4. With regard to tax breaks relating to property the following are the most important:
5. Tax Deduction for Property Purchase Where a property is purchased that will become the permanent private residence of the taxpayer then the following deductions may be made: 1) Generally 6% 2) 9% where any of the following criteria are fulfilled:
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10. For renting of the principal personal residence 2) A maximum of €600 may be deducted from the autonomous part of the taxpayers annual income tax bill where the taxpayer is part of a 'large' family as legally defined and paragraphs (b) and (c) are complied with 3) Where a joint tax return is made then those who are in the situation described in Section 1 (a) or Section 2 may
11. For renting of the principal personal residence apply a maximum deduction of €600 with a maximum total taxable income of €30,000 less the personal and family deductions The same property may not give rise to a deduction of more than €600 This deduction is not compatible with certain state exemptions for renting of a private personal residence
12. Renovation of a Property A deduction of 1.5% of the investment made in renovating a property which is destined to be the family home of the taxpayer may be made
13. Simply put, property transactions in Spain is unique to this country with legal assumptions made here that just don't exist elsewhere Pitfalls Dealing with Property in Spain
14. 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
15. 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
16. As well as... Typical ploys to watch out for to avoid being defrauded. Property taxes you pay and those you don't!
17. And much more... Download the myAdvocate Spain guide to Dealing with Property in Spain by clicking on: Taxes when Purchasing Property in Spain For for further information on the property purchase process specifically go to: Real estate lawyer Spain
18. 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™
19. More information and contact details: www.myadvocatespain.com [email_address] Tel. +34 931 845 073
