Since last year the world pandemic of COVID-19 was declared, in the Autonomous Community of Andalusia different measures have been adopted in order to mitigate the negative effects that it is causing in our territory.
For that reason, from Welex, lawyers and accountants in Marbella, we wish to highlight the last reduction of taxes in Andalusia, Spain, that the Junta de Andalucía has announced this week, the Decree-Law 7/2021, of 27th April, on the reduction of the taxation of the Transfer Tax and Documented Legal Acts.
Coming into vigour as of 28th April 2021 and with exclusive duration until 31st December 2021, specifically in the modality of Onerous Property Transfers. This reduction of taxes in Andalusia, Spain, is applicable to the transfer of real estate and to the constitution and transfer of rights over the same, except those of guarantee. This reduction goes from the rates approved in the Legislative Decree 1/2018, of 19th June, being the same of 8%, 9% and 10%, to a single general rate of 7%. Likewise, the tax rate on Documented Legal Acts in Andalusia, Spain, for notarial documents has been reduced from 1.5% to 1.2%.
The measures adopted are intended to achieve a dual objective:
- To boost and reactivate the real estate sector in Andalusia. A sector seriously affected by the economic crisis resulting from the COVID-19 pandemic. An example of this is the data collected by the National Institute of Statistics, which shows that the year 2020 closed with a total fall of approximately 17% in the number of properties sold in Andalusia.
In this way, the intention is to stimulate the demand for the acquisition of used homes, with the consequent substantial reduction in the taxation of their acquisition and, on the other hand, to encourage the offer of new construction with more affordable prices derived from this measure.
- Due to this reduction of taxes in Andalusia, the aim is to boost citizens’ access to housing.
For all the above-mentioned reasons, and focusing all efforts on the achievement of this double objective, it becomes imperative to approve this measure, which from Welex, we share and celebrate.
In tax matters in general, and with regard to the Transfer Tax and Documented Legal Acts in particular, another measure has been previously approved in order to avoid possible tensions in treasury, extending the deadline for filing and payment of the aforementioned tax up to three months in addition to that established in its specific regulations, in the periods that coincide totally or in part with the first state of alarm, declared by Royal Decree 463/2020, of 14 March.
From Welex, in our office of lawyers and economists in Marbella, we are proud of our team composed by professional tax advisors and accountants, specialists in the process of buying and selling real estate in Spain. Please do not hesitate to contact us if you wish more information regarding this reduction of taxes in Andalusia, Spain, or any other accountant or legal matter in Spain, we will be pleased to assist you.
The purchase and sale of a second transmission property in Spain, that is to say, where the seller is a private individual or the property has already been inhabited, is subject to the Property Transfer Tax in Spain. This tax varies depending on the autonomous community where the property is located.
To know whether your are tax resident in Spain, we must have a look at article 9 of the Law on Income Tax of the Spanish Tax Office, that sets forth that a natural person is tax resident in three cases:
Its a pleasure to explain in the following lines a general summary when it comes to Inheritance Tax in the Autonomous Community of Andalusia (Spain).
Introduction: Who pays inheritance tax in Andalusia, Spain?