Tax reduction on buying property in Andalusia extended indefinitely!
By Mas Property
on Mon Dec 13 2021
The Andalusian Government has confirmed permanent tax reduction on the purchase of homes in Andalusia. The Junta de Andalucia has passed its new Law 5/2021of 20th October that will reduce the ITP Transfer Tax in Andalusia to 7%, permanently!
The Junta de Andalucia had already reduced the Transfer Tax (ITP) from 8% to a fixed (unique) rate of 7% for all property purchases completed in 2021, which meant a significant reduction for those completing before the end of the year.
Prior to this reduction, 8% of the purchase price had to be paid on property up to 400,000 euros, 9% between 400,000 and 700,000 euros and a hefty 10% on properties over 700,000 euros.
The new law means that anyone in the process of buying a resale property in Andalusia will now pay the ITP Transfer Tax at a fixed rate of 7% (across all property values), regardless of whether the transaction completes in 2021 or not.
This permanent tax reduction is welcome news for the Andalusian property market and a definite positive for all current and future Buyers of Andalusian property.
Stamp Duty (Off Plan): Tax rate is now a flat 1.2%.
Property Transfer Tax (Resales): Tax rate is a flat 7% on any sale price.