Purchase of furniture taxed in Spain

 

 

Do I Have to Pay Taxes When Buying Furniture in Spain?

When buying a property in Spain, especially as a foreign buyer, it’s common to encounter offers where the house is sold fully or partially furnished. However, a widespread misconception exists: many buyers believe that if they pay separately for the furniture, that amount is not taxable. This is incorrect.

In Spain, the purchase of furniture—like any other movable good (mueble)—is subject to taxation, even if it’s between private individuals. Failing to comply with this requirement can lead to fines and inspections from the Spanish Tax Authorities.

Let us clarify how furniture is taxed, what the buyer and seller must do, and why this often-misunderstood detail can have important consequences in property transactions.

 

Is Furniture Taxed in Spain When Bought with a Property?

Yes. Whether you buy furniture included in the price of the house or listed separately, the acquisition of movable property is subject to Transfer Tax (Impuesto de Transmisiones Patrimoniales – ITP).

  • If the furniture is included in the total sale price of the property, the Transfer Tax (ITP) is generally paid on the full amount, covering both the real estate and the furniture. No problem arises in this case.

  • If the furniture is priced and paid for separately, then the buyer must still pay ITP on the furniture, even if it’s a private transaction.

 

The applicable tax rate depends on the Autonomous Community. For example:

  • In the Region of Valencia, the ITP on movable goods is 6%.

  • Other regions may apply different rates.

 

 

Common Misconception: “If It’s Not Real Estate, It’s Not Taxed”

Many buyers, especially from countries where private sales of personal goods are untaxed (such as the UK or Germany), mistakenly believe that second-hand furniture is tax-free in Spain. Based on this, some sellers and buyers:

  • Separate the property price from the furniture value.

  • Draft two contracts (one for the house, one for the furniture).

  • Pay the house price through the notary, and the furniture in cash or direct transfer.

 

Warning: While these arrangements are common, they are not legally tax-exempt. The Spanish Tax Office can review these transactions—and if taxes haven’t been paid on the furniture, penalties may apply.

 

 

Is There a Threshold or Exemption?

No. There is no minimum threshold below which you are exempt from paying ITP on furniture. Even if the furniture is valued at just €1,000 or €2,000, the tax is due. In addition:

  • Any cash payment above €1,000 between business and consumers, or above €2,500 between individuals, may be subject to scrutiny.

  • Spanish banks are obliged to report any cash withdrawals above €3,000 to the tax authorities.

  • Under the 2015 tax reforms, all bank transactions and transfers can be reviewed by the Tax Agency (Agencia Tributaria) for up to 10 years.

 

 

What Does the Seller Have to Do?

If you’re selling furniture—either together with the property or separately—you must:

  • Declare the sale of the movable goods (muebles) in your personal income tax return (IRPF).

  • The sale will be considered a capital gain or income, unless justified as non-profit or depreciated.

 

This applies even if the furniture is old or used. If the Tax Office detects that you received payment for furniture and did not declare it, you could face income tax penalties.

 

Practical Example

Imagine you’re buying a villa in Alicante for €250,000, and the owner proposes to separate €10,000 for furniture, paid directly between parties.

  • If you pay only €250,000 and declare that at the notary, but ignore the €10,000:

    • You may underpay the Transfer Tax.

    • You may trigger a tax inspection if the Tax Office sees a transfer or cash movement not aligned with the declared purchase price.

  • Proper way:

    • Pay €240,000 for the property (declared at the notary) and €10,000 for the furniture under a separate contract.

    • Declare and pay ITP (6% in Valencia = €600) on the €10,000.

    • The seller declares the €10,000 as income in their IRPF.

 

Conclusion: Be Transparent, Avoid Risk

In Spain, furniture is taxable—even in private sales. If you’re buying a furnished property, don’t assume that separating the price of the furniture exempts you from paying tax.

  • As a buyer, you are responsible for declaring and paying the ITP on the furniture.

  • As a seller, you must report the income in your tax return.

 

Always consult a specialized lawyer or tax advisor before separating prices or signing multiple contracts in a property transaction.

 

If you need help structuring your purchase, drafting proper contracts, or complying with Spanish tax law, our legal and tax team is ready to assist you. Contact us for a full review before completing your property transaction.