The ITP Rental Tax: A Simple Guide

What is the ITP rental tax and how can I pay it?

There’s a tax on everything these days from cars to your weekly shop.

But is renting a home in Barcelona subject to tax?

YES!

It’s called ITP, otherwise known as the ghost tax – because most people don’t pay it, or even know what is is! – and its one to watch out for because they’re beginning to enforce it.

But who’s responsible for paying it?

That’ll be you, the tenant.

So if you want to rent in Barcelona, read on and get clued up so you don’t get caught out!

MONEY

What is it?

It is a government tax on all property rentals, charged at 0.5% of the taxable base, which must be paid within 30 days of signing the contract.

 

What is the taxable base?

Well that depends on the length of your contract.

For contracts of one year or more, the taxable base is the total amount of the rent to be paid during the term of the contract, and at least three years.

For seasonal contracts of less than one year, it is the total amount of rent to be met for the entire duration of the lease.

If the duration of the contract is not stated, it is the total amount of the rent to be paid for six years.

The amount to be paid is then calculated by working out 0.5% of the taxable base.

Here are some example numbers:

On April 1, 2016, a private rental contract is formalised for a period of five years, with a monthly rent of 500.00 euros.
The taxable base will be equal to: 500.00 (rent) x 12 (months) x 5 (years) = 30,000.00 euros. 
The fee to be paid will be: 0.5% x 30,000.00 = 150.00 euros.

If you still aren’t confident working out out yourself then you can book an appointment with the tax office and they will help you with everything. The office is at:

Oficina Territorial al Barcelonès Nord
Carrer de Joan d’Àustria, núm. 39-47
08005
Barcelona
Telephone 93 551 50 00

 CONTRACT

How do I pay the tax?

First, you have to fill out the form Modelo 600 which you can download here  (and you can also download some instructions to help you out).

Then you take this form to the bank where they will stamp the paper and then you can pay the tax. Here is the list of banks you can pay at.

There is no need to present a copy of the rental contract on condition that it is submitted to the Catalan Land Institute (INCASÒL) within a maximum period of 2 months after the signing of the contract.

Otherwise, it is necessary to present both an original and copy of the rental contract either in person or, if the procedure is done online,  you must attach a scanned copy.

For more info you can take a look at the government website, however this is only available in Catalan and Spanish so have a friend handy who can help you translate if you need to.

You’ll also need to have your NIE which can take months to apply for. Fortunately, we’ve written a handy guide to getting your NIE in Barcelona to help you out.

 

How long do I have to pay?

You have 30 days from the signing of the contract to pay. If the final day is a Saturday, Sunday or public holiday then the period is extended until the next working day. If its not paid within the stated time your risk being fined.

 

Hope that’s helped you! Let us know if you have any more questions and we’ll be happy to help. And if you’re still looking for a flat be sure to check out our properties for rent!

– Erin

Article Category:

Good to Know, Real estate



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