Andalusia’s government has just agreed to lower taxes!

3rd November 2021
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  • Andalusia’s government has just agreed to lower taxes!

May 13. 2021

By Michael Dolan

 

"Prospective purchasers should seriously consider buying now and take advantage of this time-gated opportunity to save a huge amount in transfer tax..."  Michael Dolan

 

The Junta de Andalucía announced a cut to property transfer tax and stamp duty for the remainder of 2021, which is aimed at helping buyers and increasing the sales at every level of the market.

 

The move comes as Andalusia’s government agreed to lower taxes across the region. Included were the following six taxes -

 

  • IRPF (personal income tax)
  • IHT (inheritance tax)
  • Patrimonio (wealth tax)
  • ITP (property transfer tax)
  • AJD (stamp duty)
  • Taxes on gambling

 

What does this mean for you if you are buying a property here in Marbella?

 

The property transfer tax (ITP) taxes the purchase of a used home which means that a reduction in ITP translates into a massive tax saving for resale property buyers here on the Costa del Sol. The new flat rate of 7% replaces the previous sliding scale rate and that means the higher the property price the more you save.

 

And there has been a small reduction in stamp duty (AJD), down to 1.2% from 1.5% which means even buyers of off plan properties, new builds and new developments get to see some of the tax savings.

 

This is a temporary measure that was brought in to offset some of the repercussions of the pandemic on the property market, and it is only valid until the end of the year. So, there is no time to waste.

 

Prospective purchasers should seriously consider buying now and take advantage of this time-gated opportunity to save a huge amount in transfer tax, especially because this tax advantage ends on the 31st of December 2021. For details on all the properties we have for sale in Marbella, and the surrounding areas – Nueva Andalucia, Benahavis, the New Golden Mile in Estepona and Sierra Blanca - please feel free to drop into our office.

 

We understand that choosing a new home is a big step, and for those of you buying or selling a property in a foreign country, it can be very stressful. Our team of real estate experts provide a full ‘hands on’ service, we work in partnership with you (our client), your lawyer and any other professional advisers or consultants. Dolan Property is here to help you through the whole process, every step of the way.

 

Dolan Property are committed to the highest levels of business and ethical standards, and we are proud members of the Leading Property Agents of Spain (LPA).

 

 

 


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