Housing taxation: attention to the fine print

Taxation on housing sales in Spain currently ranges from 19% to 28%. Homebuyers who purchased a house before December 31, 2012, and took out a mortgage can deduct up to 15% of their mortgage payments, with a maximum of €1,356 per year. Sellers must pay tax on the profit made from the sale, with rates ranging from 19% to 28% depending on the profit amount, but can avoid paying tax if they reinvest the sale proceeds in a new home within two years.

Additionally, sales by individuals over 65 are exempt from taxation. For rentals, landlords can reduce taxable income by 50%, while tenants who rented before December 31, 2014, can claim a deduction of up to 10.05%.