Property tax revenue at record high


Revenues from the IMT (property transfer tax) increased by 37.8% in 2021 compared to 2020, reaching 1,354.5 million euros, the highest value since the IMT replaced Sisa in 2004.

According to the General Budget Directorate (DGO), in 2021 the IMT reached 1,354.5 million euros, an increase of 371.3 million euros compared to the amount collected in 2020.

IMT crossed the €1 billion turnover mark for the first time in 2018 (€1,003.9 million), a bar it managed to maintain in 2019.

In 2020, with the arrival of the covid-19 pandemic, revenues decreased slightly, having fallen to 964.6 million euros, according to budget data.

The value of the IMT recorded in 2021 is the highest since this tax replaced the old Sisa, in 2004, and its “predecessor” has never managed to reach such a high amount since at least 1995, according to the tax revenue statistics from the National Institute of Statistics (INE).

IMT is levied on the purchase and sale of real estate, whether new or used. It is also due when the property is exchanged.

The rules for this tax determine that it is calculated on the amount of the transaction or on the net taxable value (TPV) of the property, whichever is greater.

With regard to the purchase of a house intended for own and permanent housing, there is a tax exemption of up to 92,407 euros. On secondary residences, the IMT commission is 1% for transactions up to 92,407 euros.

Above this level of values ​​and up to 550 thousand or 574 thousand euros, depending on the destination of the property, marginal rates are applied.

The 2020 state budget created a single IMT rate of 7.5% for real estate transactions over €1 million.


About Author

Comments are closed.