The Andalusian Government has confirmed permanent tax reduction on the purchase of homes in Andalusia. The Junta de Andalucia has passed its new Law 5/2021of 20th October that will reduce the ITP Transfer Tax in Andalusia to 7%, permanently!
The Junta de Andalucia had already reduced the Transfer Tax (ITP) from 8% to a fixed (unique) rate of 7% for all property purchases completed in 2021, which meant a significant reduction for those completing before the end of the year.
Prior to this reduction, 8% of the purchase price had to be paid on property up to 400,000 euros, 9% between 400,000 and 700,000 euros and a hefty 10% on properties over 700,000 euros.
The new law means that anyone in the process of buying a resale property in Andalusia will now pay the ITP Transfer Tax at a fixed rate of 7% (across all property values), regardless of whether the transaction completes in 2021 or not.
This permanent tax reduction is welcome news for the Andalusian property market and a definite positive for all current and future Buyers of Andalusian property.
Stamp Duty (Off Plan): Tax rate is now a flat 1.2%.
Property Transfer Tax (Resales): Tax rate is a flat 7% on any sale price.