Helping clients in French, Spanish and English

Junta de Andalucia Announces Property Tax Reduction on Resale Properties

Spanish Map of Andalucia

The Junta de Andalucia announced on 28th April that there was a number of tax reductions, from inheritance tax, property transfers and commercial space purchases. The biggest one being of interest to our clients is the Transfer Tax (also known as Stamp Duty or ITP & AJD).

If you are purchasing a property that is either a resale or second hand (not direct from a developer) then you will pay a transfer tax. This tax varies depending on what province you purchase in. In Andalucia, it is based on a sliding scale depending on the purchase price.

Previous tax amounts were as follows:

Up to €400k tax payable was 8%

€400 to €700k tax payable was 9%

Over €700k tax payable was 10%

However, since 28th April 2021 up until 31st December 2021, the transfer property tax has been reduced to a flat rate of 7% on all second hand property purchases. Therefore, a considerable saving can be made until the end of the year!

For example, a property costing €1m would have cost €100k in tax, however until the end of December 2021 you will pay €70k, giving a massive saving of €30k!!!

So, what better time to purchase, with prices remaining stable across the popular coastal resorts your dream holiday or retirement home could be nearer than you think.

Get in touch with us today, to see what financing options can make your property purchase even more cost effective than before.

Related articles

Spanish Mortgages

What Are The Different Types Of Mortgages in Spain

If you are thinking of buying a holiday home in Spain, or perhaps you are retiring to Spain, it might be a good idea to look at your finance options. Mortgages rates in Spain are […]

Learn More

Business As Usual Throughout Lock-down

A lot of changes have happened this week in Spain, following the announcement by The President of Government, Pedro Sanchez to lock-down Spain in order to contain the spread of the coronavirus, all non essential […]

Learn More
Property Plans with tape measure

Buying Off-Plan During Covid-19

Are you considering or have you agreed to purchase an off-plan property prior to the Coronavirus. Many of our clients put a deposit down on an off-plan property before the Coronavirus crisis happened. This is […]

Learn More
en_GBEnglish