{"id":107935,"date":"2022-03-07T07:00:09","date_gmt":"2022-03-07T06:00:09","guid":{"rendered":"https:\/\/www.shbarcelona.com\/blog\/en\/?p=107935"},"modified":"2022-03-07T13:05:06","modified_gmt":"2022-03-07T12:05:06","slug":"what-is-itp","status":"publish","type":"post","link":"https:\/\/www.shbarcelona.com\/blog\/en\/what-is-itp\/","title":{"rendered":"What is ITP?"},"content":{"rendered":"<p style=\"text-align: justify;\">Let&#8217;s start with the definition of the abbreviation: ITP stands for <em><strong>Impuesto de Transmisiones Patrimoniales y Actos Jur\u00eddicos Documentados<\/strong><\/em> and it is a Transfer Tax and Stamp Duty. This tax that must be paid to the <em><strong>Hacienda<\/strong> <\/em>(the Treasury) when buying and selling houses and vehicles (both second-hand), when renting out an apartment or for other ways of capital increase.<\/p>\n<p style=\"text-align: justify;\">Although it is a state tax, each autonomous region is responsible for its collection. It will, therefore, have specific rules and specifications. This article will only focus on the <strong>ITP in Catalonia<\/strong>.<\/p>\n<p style=\"text-align: justify;\"><div id=\"metaslider-id-104522\" style=\"max-width: 850px; margin: 0 auto;\" class=\"ml-slider-3-20-3 metaslider metaslider-responsive metaslider-104522 ml-slider\">\n    <div id=\"metaslider_container_104522\">\n        <ul id='metaslider_104522' class='rslides'>\n            <li><a href=\"https:\/\/www.shbarcelona.com\/\" target=\"_self\"><img width=\"850\" height=\"182\" src=\"https:\/\/www.shbarcelona.com\/blog\/en\/wp-content\/uploads\/2020\/09\/en-1.jpg\" class=\"slider-104522 slide-104523\" alt=\"rental apartments in Barcelona\" rel=\"\" title=\"Banner medio home inquilinos\" \/><\/a><\/li>\n        <\/ul>\n        \n    <\/div>\n<\/div>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_17 counter-hierarchy ez-toc-grey\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class=\"ez-toc-list ez-toc-list-level-1\"><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.shbarcelona.com\/blog\/en\/what-is-itp\/#ITP_in_Catalonia\" title=\"ITP in Catalonia\">ITP in Catalonia<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.shbarcelona.com\/blog\/en\/what-is-itp\/#ITP_and_buying_a_property\" title=\"ITP and buying a property\">ITP and buying a property<\/a><ul class=\"ez-toc-list-level-3\"><li class=\"ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.shbarcelona.com\/blog\/en\/what-is-itp\/#When_to_pay_ITP_when_buying_a_property\" title=\"When to pay ITP when buying a property?\">When to pay ITP when buying a property?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.shbarcelona.com\/blog\/en\/what-is-itp\/#Who_pays_for_the_ITP_when_buying_a_property\" title=\"Who pays for the ITP when buying a property?\">Who pays for the ITP when buying a property?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.shbarcelona.com\/blog\/en\/what-is-itp\/#What_documentation_is_needed_to_pay_for_the_ITP\" title=\"What documentation is needed to pay for the ITP?\">What documentation is needed to pay for the ITP?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.shbarcelona.com\/blog\/en\/what-is-itp\/#How_to_calculate_the_ITP_when_buying_a_property\" title=\"How to calculate the ITP when buying a property\">How to calculate the ITP when buying a property<\/a><\/li><\/ul><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.shbarcelona.com\/blog\/en\/what-is-itp\/#ITP_when_renting_out_a_property\" title=\"ITP when renting out a property\">ITP when renting out a property<\/a><ul class=\"ez-toc-list-level-3\"><li class=\"ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.shbarcelona.com\/blog\/en\/what-is-itp\/#Who_then_pays_for_the_ITP_when_renting_out_an_apartment\" title=\"Who then pays for the ITP when renting out an apartment?\">Who then pays for the ITP when renting out an apartment?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.shbarcelona.com\/blog\/en\/what-is-itp\/#How_to_calculate_the_ITP_when_renting_out_an_apartment\" title=\"How to calculate the ITP when renting out an apartment\">How to calculate the ITP when renting out an apartment<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 style=\"text-align: left;\"><span class=\"ez-toc-section\" id=\"ITP_in_Catalonia\"><\/span>ITP in Catalonia<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">Now that you have read about this tax, let&#8217;s expand on its definition in Catalonia, as it is somewhat more complex.<\/p>\n<p style=\"text-align: justify;\">According to the website of the <a href=\"https:\/\/atc.gencat.cat\/es\/tributs\/itpajd\/\" target=\"_blank\" rel=\"noopener nofollow\"><em><strong>Ag\u00e8ncia Tribut\u00e0ria de Catalunya<\/strong><\/em><\/a>, the Transfer Tax contains 3 different types of activities on which it is levied:<\/p>\n<ul style=\"text-align: justify;\">\n<li><b><em>Las transmisiones patrimoniales onerosas <\/em><\/b>(TPO): this concerns transfers between natural persons\n<ul>\n<li aria-level=\"2\">Buying and selling real estate<\/li>\n<li aria-level=\"2\">Renting out a property<\/li>\n<li aria-level=\"2\">Buying and selling used vehicles or vessels<\/li>\n<li aria-level=\"2\">A loan to a family member<\/li>\n<li aria-level=\"2\">Administrative transfer<\/li>\n<li aria-level=\"2\">Other asset transfer with capital gains<\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"2\"><b><em>Las operaciones societarias <\/em><\/b>(OS): carried out between legal entities for profit. They do a self-assessment with form 600.<\/li>\n<li aria-level=\"2\"><b><em>Los actos jur\u00eddicos documentados <\/em><\/b>(AJD): these are notarial, commercial, administrative and judicial documents.<\/li>\n<\/ul>\n<div id=\"attachment_107940\" style=\"width: 650px\" class=\"wp-caption aligncenter\"><img aria-describedby=\"caption-attachment-107940\" class=\"size-full wp-image-107940\" src=\"https:\/\/www.shbarcelona.com\/blog\/en\/wp-content\/uploads\/2022\/03\/pexels-tara-winstead-7111544.jpg\" alt=\"income tax\" width=\"640\" height=\"426\" \/><p id=\"caption-attachment-107940\" class=\"wp-caption-text\"><em>Photo via Pexels<\/em><\/p><\/div>\n<p style=\"text-align: justify;\">Now that you know this, you wonder: &#8220;<strong>Who pays for this transfer tax?<\/strong>&#8221; In most of the cases &#8211; depending on the type of transaction involved &#8211; it is the buyer (or tenant, pensioner, company&#8230;).<\/p>\n<table style=\"width: 100%; border-collapse: collapse; background-color: #ffe6c9;\">\n<tbody>\n<tr>\n<td style=\"width: 100%; text-align: justify;\"><b>&#x1f4cc; You can find more information in this <a href=\"https:\/\/atc.gencat.cat\/web\/.content\/documents\/02_doc_tributs\/01_itpajd\/guia_itp_es.pdf\" target=\"_blank\" rel=\"noopener nofollow\">Practical Guide on Transfer Tax<\/a> by the <em>Ag\u00e8ncia Tribut\u00e0ria de Catalu\u00f1a<\/em>.<\/b><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: justify;\">We will now look at how this tax should be paid when doing real estate transactions.<\/p>\n<h2 style=\"text-align: left;\"><span class=\"ez-toc-section\" id=\"ITP_and_buying_a_property\"><\/span>ITP and buying a property<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">As you may have noticed, Transfer Tax is also applicable when <strong>buying a second-hand property<\/strong> (as new-build properties are subject to VAT), and also when <strong>renting out a property<\/strong>. Let&#8217;s discover more on this matter.<\/p>\n<div id=\"attachment_107938\" style=\"width: 650px\" class=\"wp-caption aligncenter\"><img aria-describedby=\"caption-attachment-107938\" class=\"size-full wp-image-107938\" src=\"https:\/\/www.shbarcelona.com\/blog\/en\/wp-content\/uploads\/2022\/03\/mathieu-stern-1zO4O3Z0UJA-unsplash.jpg\" alt=\"little man sits on coins\" width=\"640\" height=\"427\" \/><p id=\"caption-attachment-107938\" class=\"wp-caption-text\"><em>Photo via Unsplash<\/em><\/p><\/div>\n<h3 style=\"text-align: left;\"><span class=\"ez-toc-section\" id=\"When_to_pay_ITP_when_buying_a_property\"><\/span>When to pay ITP when buying a property?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">Although it seems like only a small tax, it is considered to be <strong>one of the highest amounts when buying second-hand property<\/strong>. It is correct that the ITP depends on the Autonomous Community in which it is levied, but it is an interesting fact to know and calculate beforehand, as you want to know if a deal is worth it or not.<\/p>\n<p style=\"text-align: justify;\">Now you also might want to know <strong>when this ITP should be paid when buying a property<\/strong>? Normally it is due at the time of signing the deed. In fact, you have a maximum of 30 working days from the date you sign the deed at the notary to pay the requested amount.<\/p>\n<table style=\"width: 100%; border-collapse: collapse; background-color: #ffe6c9;\">\n<tbody>\n<tr>\n<td style=\"width: 100%; text-align: justify;\"><b>&#x1f4cc; Remember that you will only pay ITP on existing homes and not on newly built properties. You pay VAT on the latter.<\/b><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3 style=\"text-align: left;\"><span class=\"ez-toc-section\" id=\"Who_pays_for_the_ITP_when_buying_a_property\"><\/span>Who pays for the ITP when buying a property?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">As already mentioned, the buyer must pay the Transfer Tax <strong>at the time of signing the deed<\/strong>. So it is one more expense that should be added to all the other expenses of buying a property.<\/p>\n<h3 style=\"text-align: left;\"><span class=\"ez-toc-section\" id=\"What_documentation_is_needed_to_pay_for_the_ITP\"><\/span>What documentation is needed to pay for the ITP?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">You should visit the corresponding <em><strong>Agencia Tributaria de Catalu\u00f1a<\/strong><\/em>, and take the <strong>following documentation<\/strong> with you:<\/p>\n<ul style=\"text-align: justify;\">\n<li aria-level=\"1\"><strong>Personal identity document<\/strong><\/li>\n<li aria-level=\"1\">The original document of the <strong>public deed<\/strong> (to be returned at the time)<\/li>\n<li aria-level=\"1\">A <strong>simple copy<\/strong> of the public deed (to be kept by the tax office)<\/li>\n<li aria-level=\"1\">A form called <em><b>Modelo 600 <\/b><\/em>should be filled out<\/li>\n<\/ul>\n<table style=\"width: 100%; border-collapse: collapse; background-color: #ffe6c9;\">\n<tbody>\n<tr>\n<td style=\"width: 100%; text-align: justify;\"><b>&#x1f4cc; If a taxpayer is eligible for a tax deduction or reduced tax rate, documentation must be provided to prove that\u00a0 requirements are being met by the applicant.<\/b><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3 style=\"text-align: left;\"><span class=\"ez-toc-section\" id=\"How_to_calculate_the_ITP_when_buying_a_property\"><\/span>How to calculate the ITP when buying a property<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">As giving an example always works better than just telling the rules and regulations, we will now show you <strong>how to calculate<\/strong> the ITP when buying a property.<\/p>\n<p style=\"text-align: justify;\">An apartment is sold in Barcelona for 300.000 euros, and it is taxed at a rate of 10%*, which means the amount of the ITP is 30.000 euros. <em>*You can consult the rates and tax rates <a href=\"https:\/\/atc.gencat.cat\/es\/tributs\/itpajd\/tpo\/tarifes-tipus\/\" target=\"_blank\" rel=\"nofollow noopener\">this section of the Agencia Tributaria de Catalunya website<\/a>.<\/em><\/p>\n<div id=\"attachment_107936\" style=\"width: 650px\" class=\"wp-caption aligncenter\"><img aria-describedby=\"caption-attachment-107936\" class=\"size-full wp-image-107936\" src=\"https:\/\/www.shbarcelona.com\/blog\/en\/wp-content\/uploads\/2022\/03\/jozsef-hocza-y5N2HDwagVw-unsplash.jpg\" alt=\"keys\" width=\"640\" height=\"507\" \/><p id=\"caption-attachment-107936\" class=\"wp-caption-text\"><em>Photo via Unsplash<\/em><\/p><\/div>\n<h2 style=\"text-align: left;\"><span class=\"ez-toc-section\" id=\"ITP_when_renting_out_a_property\"><\/span>ITP when renting out a property<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">When renting out an <a href=\"https:\/\/www.shbarcelona.com\/\"><strong>apartment in Barcelona<\/strong><\/a>, ITP must also be applied, as it is a real estate property that is used as a home. Let&#8217;s share some more details.<\/p>\n<h3 style=\"text-align: left;\"><span class=\"ez-toc-section\" id=\"Who_then_pays_for_the_ITP_when_renting_out_an_apartment\"><\/span>Who then pays for the ITP when renting out an apartment?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">In order to know <strong>who is responsible for paying the ITP when renting out an apartment<\/strong>, we need to explain a bit more. Although the tenant (art. 8.f) is normally responsible for paying this tax, the landlord (according to article 9 of the <em>Texto Refundido de la Ley del Impuesto sobre Transmisiones Patrimoniales y Actos Jur\u00eddicos Documentados<\/em>) becomes the one who is responsible for paying the ITP if he has received the first month&#8217;s rent without requiring the tenant to pay the tax.<\/p>\n<h3 style=\"text-align: left;\"><span class=\"ez-toc-section\" id=\"How_to_calculate_the_ITP_when_renting_out_an_apartment\"><\/span>How to calculate the ITP when renting out an apartment<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">To get a better picture, we will discuss the following example with you: the monthly rent of an apartment is 800 euros. This leads to an annual amount of rent of 9,600 euros (multiplied by 12). Let&#8217;s assume that our rental contract is for 3 years, so then we multiply the annual amount of rent by 3. This gives us a total number of 28,800 euros. Now you can apply the <strong>applicable tax rate, which is 0.5%<\/strong>. The amount of ITP to be paid is 140 euros.<\/p>\n<table style=\"width: 100%; border-collapse: collapse; background-color: #ffe6c9;\">\n<tbody>\n<tr>\n<td style=\"width: 100%; text-align: justify;\"><b>&#x1f4cc; ShBarcelona can fill in the <em>Modelo 600<\/em> for you, which means we can arrange the complete process and payment of the ITP.<\/b><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<div id=\"attachment_107937\" style=\"width: 650px\" class=\"wp-caption aligncenter\"><img aria-describedby=\"caption-attachment-107937\" class=\"size-full wp-image-107937\" src=\"https:\/\/www.shbarcelona.com\/blog\/en\/wp-content\/uploads\/2022\/03\/kelly-sikkema-SBxdMoOY9zM-unsplash.jpg\" alt=\"calculator\" width=\"640\" height=\"428\" \/><p id=\"caption-attachment-107937\" class=\"wp-caption-text\"><em>Photo via Unsplash<\/em><\/p><\/div>\n<p style=\"text-align: center;\"><strong>Do you have any more questions on the ITP?<\/strong><br \/>\n<strong>Tell us in the comment section, and we will answer your questions!<\/strong><\/p>\n<p style=\"text-align: justify;\">\n<div style=\"display: none;\"\n    class=\"kk-star-ratings kksr-valign-bottom kksr-align-left \"\n    data-id=\"107935\"\n    data-slug=\"\">\n    <div class=\"kksr-stars\">\n    <div class=\"kksr-stars-inactive\">\n            <div class=\"kksr-star\" data-star=\"1\">\n            <div class=\"kksr-icon\" style=\"width: 25px; height: 25px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" data-star=\"2\">\n            <div class=\"kksr-icon\" style=\"width: 25px; height: 25px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" data-star=\"3\">\n            <div class=\"kksr-icon\" style=\"width: 25px; height: 25px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" data-star=\"4\">\n            <div class=\"kksr-icon\" style=\"width: 25px; height: 25px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" data-star=\"5\">\n            <div class=\"kksr-icon\" style=\"width: 25px; height: 25px;\"><\/div>\n        <\/div>\n    <\/div>\n    <div class=\"kksr-stars-active\" style=\"width: 0px;\">\n            <div class=\"kksr-star\">\n            <div class=\"kksr-icon\" style=\"width: 25px; height: 25px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\">\n            <div class=\"kksr-icon\" style=\"width: 25px; height: 25px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\">\n            <div class=\"kksr-icon\" style=\"width: 25px; height: 25px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\">\n            <div class=\"kksr-icon\" style=\"width: 25px; height: 25px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\">\n            <div class=\"kksr-icon\" style=\"width: 25px; height: 25px;\"><\/div>\n        <\/div>\n    <\/div>\n<\/div>\n    <div class=\"kksr-legend\">\n            <span class=\"kksr-muted\">Rate us!<\/span>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Let&#8217;s start with the definition of the abbreviation: ITP stands for Impuesto de Transmisiones Patrimoniales y Actos Jur\u00eddicos Documentados and it is a Transfer Tax and Stamp Duty. This tax that must be paid to the Hacienda (the Treasury) when buying and selling houses and vehicles (both second-hand), when renting out an apartment or for [&hellip;]<\/p>\n","protected":false},"author":143,"featured_media":107939,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4598],"tags":[9881,9719],"_links":{"self":[{"href":"https:\/\/www.shbarcelona.com\/blog\/en\/wp-json\/wp\/v2\/posts\/107935"}],"collection":[{"href":"https:\/\/www.shbarcelona.com\/blog\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.shbarcelona.com\/blog\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.shbarcelona.com\/blog\/en\/wp-json\/wp\/v2\/users\/143"}],"replies":[{"embeddable":true,"href":"https:\/\/www.shbarcelona.com\/blog\/en\/wp-json\/wp\/v2\/comments?post=107935"}],"version-history":[{"count":2,"href":"https:\/\/www.shbarcelona.com\/blog\/en\/wp-json\/wp\/v2\/posts\/107935\/revisions"}],"predecessor-version":[{"id":109803,"href":"https:\/\/www.shbarcelona.com\/blog\/en\/wp-json\/wp\/v2\/posts\/107935\/revisions\/109803"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.shbarcelona.com\/blog\/en\/wp-json\/wp\/v2\/media\/107939"}],"wp:attachment":[{"href":"https:\/\/www.shbarcelona.com\/blog\/en\/wp-json\/wp\/v2\/media?parent=107935"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.shbarcelona.com\/blog\/en\/wp-json\/wp\/v2\/categories?post=107935"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.shbarcelona.com\/blog\/en\/wp-json\/wp\/v2\/tags?post=107935"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}