Taxes and expenses of buying and selling a rustic property

If you are buying

• ITP (Property Transfer Tax): in Catalonia, rates start at 10% on the reference value or the deed price, whichever is higher. Beware: the cadastral reference value can exceed the actual agreed price for rustic properties.
• Notary: based on the amount and complexity of the deed.
• Land Registry: registering the property in your name.
• Management agency (gestoría) and appraisal: if there is a mortgage.
• VAT instead: only if the seller is a company or developer, under the applicable regime.

Budget 12-13% on top of the purchase price to cover the whole process.

If you are selling

• IRPF (Personal Income Tax): you pay tax on the capital gain (difference between the updated acquisition value and the transfer value).
• Municipal capital gains tax (plusvalía municipal): applies to urban land; on purely rustic land it is not accrued, but many properties include an urban portion.
• Energy certificate and certificate of occupancy (cédula): mandatory to execute deeds for residential properties.
• Brokerage fees: in our case, 5% + VAT on the sale price, only if the transaction closes.

Frequent mistakes

• Deeding below the reference value: the tax administration assesses based on the reference value and adds a surcharge.
• Not splitting the price between rustic land and buildings when the property is mixed-use.
• Forgetting the prorated payment of the IBI (property tax) and irrigation community or hunting reserve dues.

Our recommendation

Before signing an earnest money agreement (arras), ask for a finalized tax calculation with the reference value in hand. Rustic properties are where the most expensive surprises appear, and they are always avoidable.