Prefabricated homes have sparked the interest of a large number of people in recent years. However, they still raise some doubts, such as, for example, the taxes associated with them. We tell you.
When we consider the purchase of a home, Regardless of whether it is prefabricated or traditional, we should not only look at the sales price. In addition, we must also calculate the total cost taking into account all the taxes and extra expenses that are added to the final price.
Although many of us have a more or less precise idea of ​​the taxes that we must face when considering the purchase of a traditional home, the same does not happen when we consider the purchase of a prefabricated house. However, the taxes are the same, since it is a home that, for practical purposes, has the same taxes as traditional construction. We summarize them below.
What taxes do you have to pay to buy a prefabricated house?
The main tax is VAT, as with any other consumer good. In the case of prefabricated homes, VAT is 10%as long as it is a new work. In the event that it is a house that has already had another owner previously, we will have to pay the Wealth Transfer Tax, which will vary depending on the Autonomous Community in which we carry out the purchase.
Secondly, we have the Tax on Constructions, Installations and Works, known as ICIO. This tax taxes the increase in value that land experiences when it is built on it. In the case of prefabricated houses, the tax is applied to the Material Execution Budget of the work or the extension of the home and must be paid when we begin the Work License procedures.
We must also pay the Documented Legal Acts Tax, IAJD, which taxes notarial and registry documents that formalize the transfer of property. This tax is calculated on the value of the sale, but its total percentage will depend on the autonomous community. And we cannot forget that notary and registration expenses also increase the price of the home that we are considering buying.
More expenses
In addition to the taxes that we have mentioned, we must also take into account the cost of the construction license and the certificate of occupancy. Without these permits, we will not be able to legally live in our prefabricated housing, Therefore, it is essential that we carry out the relevant procedure.
Lastly, since Modular Home They also point out that we must take into account the cost of home insurance, which will vary depending on the coverage, and the IBI, which is paid annually to the City Council.
Many of the companies specialized in the production of this type of property are in charge of helping us with the management of part of the aforementioned expenses, so we recommend that you consult with them how they can help you to know the total cost, taking into account everything former.
