From Welex, lawyers and economists in Marbella, we provide you with all the information regarding the new tax reductions in Andalusia.

This Law 5/2021 of 20 October contains all the modifications and reductions of the Transfer Tax and Stamp Duty in Andalusia.

Tax reductions are maintained in Andalusia

Last 27th April, the Junta de Andalucía indicated in its Decree-Law 7/2021 the reduction of the above-mentioned taxes, with exclusive duration until 31st December 2021. However, there is light at the end of the tunnel. Since, with this new law approved by the Parliament of Andalusia, this situation will be maintained.

Therefore, and as a general rule, with regard to the Transfer Tax and Stamp Duty in Andalusia, in the modality of onerous property transfers, the tax applicable to the transfer of real estate, as well as to the constitution and transfer of rights over the same, has been reduced. As a result, the rates of 8%, 9% and 10% will be reduced indefinitely to a single general rate of 7%. Also, the rate of taxation on Documented Legal Acts in Andalusia for notarial documents is reduced from a rate of 1.5% to 1.2%.

These tax reductions in Andalusia are intended to promote a social housing policy. In some cases, these reductions are higher in order to allow access to property for people under 35 years of age, large families or people with disabilities.

 

Below we inform you about the reduced tax rates applicable to the transfer of real estate, as long as some of the following conditions are met:

  1. Rate of 6%: This will be applied provided that the property is used as the buyer’s main residence and that the value of the property does not exceed 150,000 euros.
  2. Rate of 3.5%: This rate will be applied provided that the buyer is under 35 years old, that the property is intended for the buyer’s habitual residence and that the value of the property does not exceed 150,000 euros.
  3. Rate of 3.5%: This rate will be applied provided that the buyer is considered to be a person with a disability, that the property is used as habitual residence and that the value of the property does not exceed 250,000 euros.
  4. Rate of 3.5%: This rate will be applied provided that the buyer is considered to be a member of a large family, that the property is intended for the habitual residence of the family and that the value of the property does not exceed 250,000 euros.
  5. Rate of 3.5%: This rate will be applied provided that the buyer is considered a victim of domestic violence, that the property is used as a habitual residence and that the value of the property does not exceed 150,000 euros.
  6. Rate of 3.5%: This will be applied provided that the buyer is considered to be a victim of terrorism or an affected person, that the property is destined for their habitual residence and that the value of the property does not exceed 150,000 euros.
  7. Rate of 3.5%: This rate will be applied provided that the property to be acquired is located in a municipality with depopulation difficulties, that the property is destined to be the buyer’s main residence and that the value of the property does not exceed 150,000 euros.

 

Welex celebrates this tax reductions in Andalusia. In our office of lawyers and economists in Marbella we count with an expert team in the real estate purchase and sale process in Spain, who are constantly updated with the new measures applicable in tax and legal matters.

Please do not hesitate to contact us with any questions you may have, we will be happy to assist you.