NEW TAX RATES FOR PERIOD 28.4.2021-31.12.2021
The Andalusia regional Government has passed a new regulation on the 27th of April 2021 (Decreto-ley 7/ 2021) which reduces the rates applicable for transfer tax of Real Estate properties and rights and the stamp duty tax. Transfer tax must be paid upon the purchase of resale properties or rights and stamp duty becomes due upon signing a notarial document where a value has been established ( Deed of New Building, Mortgage, etc.) The regulation establishes a reduction of the tax rates for the period 28.4.2021 until the end of the year 31.12.2021 to reactivate the economy taken the crisis generated by the Corona Virus. Therefore this is only applicable for those transactions or documents signed in that period.
The transfer tax rate which formerly ranged between 8% and 10 % depending on the value of the property or right to be transferred and the number of purchasers has been reduced to a fixed rate of 7%. The stamp duty tax rate which formerly was 1,5 % is now 1,2 % up to the end of the year. Both taxes are to be paid to the regional government.
Please note that if you buy directly a property from the developer (first transfer) no transfer tax has to be paid but VAT to the Spanish state at the rate of 10% in case of villas or apartments and 21% in case of premises, plots etc. In this case, apart from the VAT (State tax), stamp duty at the rate now of 1,2 % (formerly at 1,5%) also has to be paid to the regional government.
This decision of the Andalusian government will for sure boost the real estate market in the region as the tax bill will be reduced considerably when buying property in Andalucía. However, this is only applicable to the period from 28th April till 31st December 2021.