Indirect taxes

Capital Transfer Tax (OEZ)

Type of Tax Indirect
Collected by Provincial Government
Paid by Natural persons and corporate entities
Tax base Price of second-hand sale
Abatements in the base None
Net tax base Sale price
Tariff or Rate

7%: Conveyance of real estate

4%: Conveyance of housing

2.5%: Conveyance of usual home

4%: Conveyance of animals and movable property

Liability Calculated by applying the tax rate to the net tax base
Deductions  None
Amount payable The tax liability calculated above

Capital Transfer Tax (Transfer of equity) is an indirect tax that has to be paid by both natural persons and corporate entities. In Gipuzkoa, it is collected by the Provincial Government. 

What is this tax levied on?

This tax applies to cases such as the purchase of a second-hand home (or car); it is calculated on the basis of the sales price of the item. It is important to remember that in second-hand sales, VAT is not applied (having already been applied in the original sale); hence the reason for Capital Transfer Tax.

How is the amount payable calculated?

  1. Tax base:  The cost of the second-hand item or good to be sold.
  2. Abatements in the base:  None.
  3. Net tax base:  Same as the tax base.
  4. Tariff or Rate: The percentage applied to the net tax base. It depends on the item or good being bought; the following rates currently apply:
    • 7%: Sale of real estate, commercial premises, industrial pavilions, etc.
    • 4%: Sale of homes, including homes that are not the usual home, as well as any appurtenances and independent garage spaces (up to a maximum of two) sold with them.
    • 2.5%: Sale of usual home as well as any appurtenances and independent garage spaces (up to a maximum of two) sold with them, provided they are in the same building, and if they meet the following conditions:
      • The dwelling is to be the usual home of the purchaser. For this reason, in general, once the home has been bought, they must move into it within less than 12 months and must inhabit it for at least 3 years running.
      • The built area and the useful floor area must be no greater than 120 m2 and 96 m2, respectively. In the case of single-family dwellings, the land area, including that of the home, must be no greater than 300 m2. Large families (families with 3 or more children) are exempt from this condition.
      • The buyer must not previously have applied the reduced 2.5% rate for another (or the same) home.
    • 4%: Sale of animals and movable property; (vehicles, etc.).
  5. Liability: Calculated by applying the corresponding tax rate to the net tax base.
  6. Deductions. There are no deductions
  7. Amount payable: The tax liability calculated above.

Tax on Documented Legal Acts (EJDZ)

Type of Tax Indirect
Collected by Provincial Government
Paid by Natural persons and corporate entities
Tax base Value shown in the deed to be registered
Abatements in the base Any applying to special situations
Net tax base Calculated by subtracting the corresponding abatements from the tax base
Tariff or Rate 0.5% in all cases
Liability Calculated by applying the tax rate to the net tax base
Deductions   None
Amount payable The tax liability calculated above

What is this tax levied on?

The tax on Documented Legal Acts applies, as the name suggests, in cases in which documents must be legalised before a notary, and to the legalisation of certain administrative and mercantile documents. The following are Documented Legal Acts:

  • Notary documents: deeds, certificates and depositions made before a notary. First copy of deeds and notary's certificates, provided that the object thereof may be valued and they constitute acts and contracts that can be placed on record. For example:
    • Acts related to VAT on real estate. For example, deed of purchase of a new property.
    • Distribution, division, grouping or union of real estate. For example: division, or grouping, of homes or estates in the Property Registry.
    • Declaration of new works, horizontal distribution.
    • Granting and payment of loans secured with a mortgage.
  • Administrative documents: Restraint orders made in the Public Registry; for example: embargos, unresolved claims related to a property, etc.
  • Mercantile documents: any document similar to bills of exchange, promissory notes, receipts and money orders.

How is the amount payable calculated?

  1. Tax base:  Value shown in the deed to be registered.
  2. Abatements in the base:  Only exist in special situations.
  3. Net tax base:  Calculated by subtracting the corresponding abatements from the tax base.
  4. Tariff or Rate:  0.5% in all cases.
  5. Liability: Calculated by applying the corresponding tax rate to the net tax base.
  6. Deductions:  None.
  7. Amount payable:  The tax liability calculated above.

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