Junta de Andalucia approves tax reduction on property transactions by decree, until the end of 2021. The intention is to keep incentivising the rise in property transactions in the region and helping the economy by generating more taxable income. 

Transfer Tax which is payable for ‘second hand’ property sales used to range from 8% to 10% depending on transaction value and type, is now reduced to 7% regardless of the price or make-up of the property.

Until the Decree-Law 7/2021 of 27 April came into effect, there was an 8 per cent tax on properties selling for up to €400,000, 9 per cent on the next €300,000 and 10 per cent on anything higher therefore the more expensive the property, the bigger the saving.

New builds are not included as they attract as they are subject to Value Added Tax (IVA) of 10% for residential and 21% for commercial property.

The same decree also establishes a reduction of Stamp Duty to 1.2 per cent from 1.5 per cent which is charged on the notarisation of any document that has an economic value and unlike Transfer Tax, a new build does require that the deed of sale be notarised and recorded in public registries.  #costadelsol #toursim #propertyinvestment #independentconsultants #livinginspain #covidinsurance