The Andalusian Government has approved a decree that includes a reduction in the property transfer tax (which is paid when buying and selling second-hand homes), so that the three rates currently set at 8, 9 and the 10% are now replaced by a flat rate of 7%. This reduction applies exclusively to the resale properties in Andalucia and does not affect new builts.
In addition, a small reduction in the tax on documented legal acts will also be applied, which will go from 1.5% to 1.2%. This is the Stamp Duty (AJD, Actos JurÃdicos Documentados) which applies to both new build and resale properties.
The reduction of the property transfer tax (ITP, Impuesto sobre Transmisiones Patrimoniales) will take effect immediately once it is published in the Official Gazette of the Junta de AndalucÃa (BOJA). According to the calculations made by Vice President MarÃn, for a property of 180,000 euros, the fee to pay for the transfer tax is currently 14,400 euros, while, with the approved reduction, 12,600 euros will be paid… that is 1,800 euros less.
This calculation is where there is a 1% reduction in the property transfer tax. For higher value properties where the reduction in tax payable is 3%, the savings are much more substantial.
It is important to remember that this only applies to properties in Andalusia including the Costa del Sol. It does not apply to other popular destinations in Spain such as the Costa Blanca, the Balearics of Canary Islands.
Read the full article in Spanish here