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.