Andalusia lowers taxes, including Property Transfer Tax and Stamp Duty.

03 May 2021

By ML
Director of Alanda Properties
3^rd of May 2021

On Monday 26^th of April, Andalusia’s coalition government agreed to lower taxes in the region of Andalusia. Concretely the following six taxes will be significantly reduced:

IRPF (personal income tax)
IHT (inheritance tax)
Patrimonio (wealth tax)
ITP (property transfer tax)
AJD (stamp duty)
Taxes on gambling

Andalusia slashes Property Transfer Tax (PTT)

Until now, Andalusia followed a sliding scale for ITP that started at 8% and went to 10% contingent on the sale value. This has now been struck off, and a unique tax rate of only 7% applies regardless of the sale value.

This change will be in force as from the 28th of April 2021 until the 31st of December 2021.

Before:

Residential property sale price	Tax rate
Up to 400,000€	8%
400,001€ – 700,000€	9%
701,000€ up	10%

Now:

Residential property sale price	Tax rate
Any	7%

This tax change translates into a massive tax saving for resale property buyers in Andalusia.

Examples:

On a €500,000 sale price, the tax saving is 15%.
On a €3,000,000 sale price, the tax saving is 27%.

What’s important to note, is that this tax-saving grows exponentially in line with the sale price; the higher the sale price, the larger the % saved in taxes.

Andalusia reduces Stamp Duty

They have also approved to slash Stamp Duty from 1.5% down to 1.2%

Whilst Stamp Duty doesn’t impact on resale property, it does affect off-plan. Anyone buying new-build property will now make a considerable tax saving with this new tax change. That’s a 20% tax saving on new builds!

Contact me at Alanda Properties for bargain-priced property or long-term lets in Marbella and the Costa del Sol. You will be surprised to learn the deals this new market has to offer on prime locations.

Article’s source: Larrain Nesbitt Abogados