Property purchase tax - Reduction in Andalcia

We are pleased to report that the Andalucian regional government has approved a law coming into force today Decree law 7/2021 of 27th April reducing taxes on the purchase of property in the region. 

 

How long can we pay the reduced tax ?

The incentives will come to an end on 31st December 2021 so it is important to act now, whether by property searches or contacts with agents in the region, to ensure you can take advantage of the reductions. 

7% property purchase tax

The two principal taxes that are being reduced are property purchase or transmission tax and or stamp duty on property transactions. Transmission tax – ITP – will now be charged at a standard rate of 7% reduced from the previous sliding scale of 8% to 10%. Stamp duty – AJD – which had been charged at 1.5% is now reduced to 1.2%. This tax reduction affects declarations of new works, cessions of credit and other property related transactions that are signed before a Public Notary.

 
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Buying property after Brexit - 3 types of the customers

Less British came to Spain after Brexit ?

The number of British nationals who are now officially registered in Spain – most of them in Andalusia and the Valencia region – has risen by a record 10% since December 2018. There are now 365,967 Britons officially registered in Spain. The British community is concentrated along the coast, predominantly in Alicante and Málaga, and more than a third of residents are over 65.

Can I buy property in Spain after Brexit ?

World Economic Outlook, released on October 2020, the International Monetary Fund (IMF) predicted that the Spanish economy will shrink by 12.8% this year, the biggest contraction of all advanced economies. Spain ranks 17th on the global list of biggest drops in gross domestic product (GDP) because Spain is extremely dependent on tourism. As for 2021, the IMF expects Spain to grow at a faster rate than the euro zone as a whole 7.2% compared with 5.2%.

buying property after brexit

What are the house prices €/m2 by regions in June 2020/2019

Balearic Islands 3.105€/m2 (+4,2%)
Madrid 2.783€/m2 (-1.4%)
País Basco 2.597€/m2 (+1.4%)
Catalunia (2.226€/m2 (+0,1%)
Islas Canarias 1.854€/m2 (+3.2%)
Andalucia,Costa del Sol 1.646€/m2 (+6%)
Alicante 1.596 €/m2 (+3,8%)

Source

Read more about the house prices in Spain here ! 

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House prices are still 1% higher than last year

How much decreased the prices of the properties in 2020 ?

Most of the economic researchers believes that spanish homes will lose about 13% of the price this year. Contrary at the moment, the situation looks as follows ( June 2020 ): the average cost per m2 of housing in Spain 1.730 €/m2, which is 1% more than in June 2019 and the rental prices are 4% more than last summer. 
 In other blog you can read about  The Property Market in Marbella in 2020 – the effects of COVID-19

What type of customers are buying now ?

1. Those who already agreed the deal, but due to the lockdown were not able to sign the contract, they want to close the deals  as quick as possible before the predictable possible restrictions.  2. Investors, who are already suffering losses in other financial investments. They are quickly moving to the property market as safest place to place the money. 3. Bargain hunters, specially searching for price reductions and try to reach discounts.



How will shrink Spain's economy in 2020?

 In its latest World Economic Outlook, released on October 2020, the International Monetary Fund (IMF) predicted that the Spanish economy will shrink by 12.8% this year, the biggest contraction of all advanced economies. Spain ranks 17th on the global list of biggest drops in gross domestic product (GDP) because Spain is extremely dependent on tourism. As for 2021, the IMF expects Spain to grow at a faster rate than the euro zone as a whole 7.2% compared with 5.2%.

Who is buying property in Spain ?

On the spanish coasts foreign buyers are representing 18% of the total buyers in Spain. Until Brexit the british buyers were the mail buyers (14%). Property Registrations Office  shows an important growth in properties purchased in Spain by other European citizens, like Scandinavians, Belgians, Dutch, French and Germans. 

What are the house prices € m2 by regions in June 2020/2019 ?

  • Balearic Islands 3.105€/m2 (+4,2%)
  • Madrid 2.783€/m2 (-1.4%)
  • País Basco 2.597€/m2 (+1.4%)
  • Catalunia (2.226€/m2 (+0,1%)
  • Islas Canarias 1.854€/m2 (+3.2%)
  • Andalucia,Costa del Sol 1.646€/m2 (+6%)
  • Alicante 1.596 €/m2 (+3,8%

Should I invest in housing market in Spain ?

Property investment appears a safe place of the money, the banks offer low interest mortgage  rates and most of regions in Spain the prices are stable despite of the Corona virus crisis.  In Andalucia the coastal area, in Costa del Sol the figures shows again that the investments in this region are safe, the famous Marbella, Puerto Banus and Nueva Andalucia, Benahavis  and Estepona still are very popular among the buyers. 

If you want to live in the neighbourhood of celebrities… you’ve come to the right place. Marbella is home to many celebrities. You’ll find frequent sightings of the rich and famous who were born here, live here or holiday here throughout the year.

Antonio Banderas, who of course everyone loves and knows of, the Spanish actor best known for playing “El Zorro”. This foxy man was born in Marbella and he visits several times every year. He has a house by the beach at Los Monteros and the main central square of the luxurious Puerto Banus is named after him. Antonio is truly connected with Marbella and you will see him at places like La Cabana and Olivia Valere. And he is a prominent citizen for the entire Easter week (Semana Santa) and several times during the summer period for Starlite.

 

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Marbella’s glamorous past dates to the 1950s, when the early “jet-setters” gathered at Prince Alfonso von Hohenlohe’s luxurious beachside residence to party during the day and dance the night away. Grace Kelly, Audrey Hepburn, Brigitte Bardot, 

Maria Calla, Aristotle Onassis, Ted Kennedy, Gunther Sachs and the Duke and Duchess of Windsor were among the wealthy and famous from around the world who sipped champagne by the sea and dined on exquisite Mediterranean delicacies at the sprawling finca that was to become ‘ Marbella Club Hotel.

Over the past half-century, that golden age has undergone various transformations but Marbella today remains a splendidly cosmopolitan, diverse and affluent area offering everything from trendy beach bars, select boutiques, Michelin-star restaurants, five-star hotels and exclusive nightclubs to picturesque marina resorts, highly-regarded international schools and several world-class golf courses… an incomparable mix of contemporary chic and traditional allure. Extending from Elvíria to the east, home to some of the Coast’s finest beaches, through the venerable cobble-stoned streets of the Old Town, along the celebrated Golden Mile to sumptuous Puerto Banús and, just beyond, San Pedro de Alcántara, and into the verdant mountain hinterland, Marbella has become a home away from home for hundreds of thousands of expatriates.

 

And, as the stunning properties featured in our website, you can find an exceptional range of homes from lavish penthouses to palatial mansions.

MARBELLA… FOR TRULY PRIVILEGED CONTEMPORARY LIVING

With over 70 golf courses, the Costa del Sol – also known as the Costa del Golf – is the top European destination for golf lovers. There are very few locations in the world that combine so many attractions in the same place as the province of Málaga does:

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