Like every product you buy within your country, Homes carry a series of taxes added to the initial priceThat is why, when you set out to get the house of your dreams that you have always wanted, you must take into account the expenses that will entail paying taxes.
In the end, These are homes that are the same as traditional ones for practical purposes., since their advantages do not change the fact that they are real estate and have the same taxes as traditional construction.
Below, we tell you everything you need to know about taxes for a manufactured home. You will learn what you need to pay to enjoy the house you always dreamed of and how to manage them to keep your entire investment under control. Let's get to it!
Types of taxes that apply to modular homes
To sum it up in a very simple sentence: the taxes associated with the purchase of a modular home are identical to those of a traditional homeWe break them down for you below:
Value Added Tax (VAT)
VAT is a direct tax that must be paid by the consumer, that is, applies to all consumer goodsThe purchase of a modular home is not exempt from paying this tax, having the value of the home as the taxable base.
How much VAT is paid? In this case, You will have to pay 10% of its value. For example, yes the price of your modular home is 200.000 euros, you will have to pay 20.000 in VAT.
If the modular home is not a new construction, but has already had previous owners, the tax you pay will be different. We are talking about the ITP (Property Transfer Tax), which varies according to each Autonomous Community., although it is usually lower than VAT and bonuses are usually applied to it.
Tax on Constructions, Installations and Works (ICIO)
When a building is built on a piece of land, its value logically increases. The ICIO is a municipal tax that has the mission of taxing this increase. In the case of modular homes, This tax will be applied to the Material Execution Budget (PEM) of the new construction or the extension of the current home. This is the tax that is paid when starting the procedures for a Building Permit. The tax rate and tax bases vary depending on each municipality.
Stamp Duty (IAJD)
As with the purchase of a traditional home, the acquisition of a modular home involves the payment of the IAJD. This tax taxes notarial and registry documents that formalize the transfer of property and its amount is usually calculated on the value of the purchase. For example, in some autonomous communities, the tax rate is 1,5%.
Notary and registry costs
In addition to these taxes, keep in mind that buying a modular home, like any home, entails a series of Mandatory notary and registry feesSome of the most important tasks that are carried out through this expense are the drafting of the deeds or the registration in the property registry.
Other costs and tax considerations
When you buy a modular home, in addition to paying the above taxes and costs, you will have to deal with other expenses which are often not taken into account.
Licenses and permits
To start and finish your modular home project, You will need a building permit and a certificate of habitability.If you do not have these permits you will not be able to legally live in it. Modular Home is responsible for manage these permissions for you, so you don't have to worry about anything.
Insurance and other additional expenses
Although this would not be included in taxes, keep in mind that every home associated with a mortgage needs to have home insurance on a mandatory basis. You will also have to face the annual Real Estate Tax (IBI) of your City Council.
Contact Modular Home to learn all about prefabricated houses
If you are thinking of buying a modular home, you should know that it carries the same taxes as a traditional house. However, with it you will be able to enjoy a series of advantages such as its affordable price, its reduced construction times, its multiple customization options or its incomparable energy efficiency.
Are you interested? Then do not hesitate to contact us. Our expert advisors will help you throughout the entire process, giving you a quote that meets your needs and guiding you on the path to enjoying the house of your dreams.
