NEWS: IF YOU ARE LESS THAN 35 YEARS OLD, SAVE 2% OF ITP IN THE PURCHASE OF YOUR PROPERTY25 May 2019 Back
IF YOU ARE UNDER 35 YEARS OF AGE AND YOU WANT TO BUY A HOUSE, THIS IS INTERESTING TO READ THIS!
In the Valencian Community the type of tax that is applied the Patrimonial Transfer Tax (ITP), is regulated by Decree Law 4/2013. Here we explain how you can get a reduction of the ITP in the sale of your second-hand home.
The type of ITP that is applied to the sale of second-hand housing in the Valencian Community is 10% on the sale value.
However, in certain cases, the liquidation office may request a reduction of the ITP from 10% to 8%.
What conditions do you need to meet in order to request this reduction of 2%
Be younger than 35
That the house you want to buy is your living residence
That the sum of the general taxable base and the taxable base of the personal income tax saving of the taxpayer does not exceed € 25,000 individually or € 40,000 joint.
This 2% savings in the ITP can be reviewed (practically all purchases are reviewed), so you have to take into account that the administration can request you even after several years of having made the purchase that justifies that you meet the requirements to benefit from that discount.
The administration can verify that indeed, the home is your living address and that you meet the requirements that were requested at the time to apply the 2% discount so you can request this documentation:
Certificate of registration in the house
Invoices of light, water, gas, etc ... in short, habitual consumption of an inhabited house
DNI, driving license, etc, with the address updated
Bank accounts with updated address
Payroll, with the address updated
So we recommend that if you have benefited from a reduction of the ITP or are going to do it you have to bear in mind that you must change all your official documents to the new address and be able to show that in that house it is truly your usual home.
If you do not comply, the administration WILL DEMAND 2% BONUS PAYMENT, so it is worthwhile to do everything very well and at this point. We as real estate agents and advisors for more than 20 years in this area can help you.