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

03 May 2021

By ML
Director of Alanda Properties
3rd of May 2021

On Monday 26th 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:

  1. On a €500,000 sale price, the tax saving is 15%.
  2. 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

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