GOOD NEWS! PURCHASE TAXES REDUCED FOR BUYING PROPERTY IN ANDALUCIA IN 2021
The Andalusian Government has approved a decree law that reduces the general rate of the Tax on Patrimonial Transmissions ITP (Transfer Tax) and Documented Legal Acts, AJD (Stamp Duty), in order to promote the economic reactivation of Andalusia. The decree law will enter into force the day following its publication in the Official Gazette of the Junta de Andalucía (BOJA).
Currently with Resale properties a scale is applied whereby the buyer pays 8% for the first €400,000; 9% for the following €300,000; and 10% for the rest of the price. From today, according to the new measures adopted, the applicable rate will be 7% for the total price, without any kind of scales.
In other words, a buyer of a €1,000,000 property saves the amount of €19,000, which is a great incentive. The reduction will surely cause an increase in the demand for second hand resale properties. New constructions will keep its taxation at 10% VAT (IVA), however the additional Stamp Duty (AJD) is also reduced from 1.5% to 1.2%.
The measure, which will be in effect from the day following its publication in BOJA until December 31, 2021, pursues a double objective. On the one hand, to promote the reactivation of the real estate sector, through a reduction in the cost of taxation linked to the acquisition of second-hand homes; on the other, to encourage the supply of new construction at more affordable prices, by reducing the fiscal costs levied by the AJD modality. Ultimately, the ultimate purpose is to alleviate the tax burden on access to housing.
Take advantage of buying and enjoying your new home NOW and pay less taxes at the same time.
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