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.