Reduction to transfer tax in Andalucía for all properties purchased by deed starting 29th of April 2021 until the end of the year.
Decree-law 7/2021, of April 27, on reduction of the transfer tax and document tax for the promotion and reactivation of the economy of the Autonomous Community of Andalusia in the face of the crisis situation generated by the pandemic of the coronavirus (COVID19 Specifically transfer tax on purchase of second hand properties is going from from the rate of 8%, 9% and 10% (depending on the purchase price ) to a single general rate of 7%.
Before transfer tax on a second hand purchase was:
Now there is one single transfer tax rate that has been fixed at 7%. Examples below of what you will save:
The effect on new properties is much smaller as they are still subject to IVA (VAT) at 10% . With new properties the only reduction is 1.5% to 1.2% on the document tax so there is very little savings.
If you are thinking about purchasing a property or have purchased, but not yet signed the deed then you can take advantage of the reduction.
If you would like to read the full law that was passed on the 27th of April and published on the 28 th either click on the link below or copy and paste into your address bar.
As I had said in an earlier News item in January 2020 Andalucia has one of the best inheritance tax deals in Spain, it now has a lower transfer tax than most regions and above all “It is best place in Spain to live”.
For more information about this subject and you are in Spain, why not call into our Office Andalucian Properties Real Estate Agent,
Marques del Duero,
San Pedro de Alcantara,
Located on the main pedestrian street of San Pedro
tel. +34 952 927 833 or email firstname.lastname@example.org.