IMPORTANT NEWS FOR EVERYONE WHO WANTS TO BUY A DREAM HOUSE IN SPAIN

Andalusia lowers transfer tax rates.

For all those who are looking for a dream house under the Spanish sun, there is good news. As of 28 April, there is a significant reduction in the tax rate for the purchase of property in Andalucia and for notary fees, among other things. This reduction is intended to stimulate the economy in Andalusia after it was badly hit by the COVID pandemic. These measures will last until 31 December 2021.

 

Read the translated text from the official press release of the Junta of Andalucía below:

“In the area of taxation in particular, it is necessary to continue to implement fiscal support measures aimed at mitigating the possible consequences of the scenario of economic stagnation for the Andalusian economy.

Therefore, with an exclusive validity until 31 December 2021, the transfer tax and stamp duty will be reduced, with the aim of promoting the dynamism and economic recovery of the Autonomous Community of Andalusia.

More specifically, the general tax rate applicable to the transfer of immovable property and to the establishment and transfer of rights in rem in respect of such property, with the exception of security rights, is reduced from the rates of 8%, 9% and 10% to a single general rate of 7%, with the exception of security rights. Similarly, the general tax rate is reduced, the modality of documented legal acts, for notarial acts, goes from a tax rate of 1.5% to a tax rate of 1.2%”

Source:

Boletín Oficial de la Junta de Andalucía, Extraordinario núm. 37- Martes, 27 de abril de 2021

 

Let me give you an example:

Your dream house costs € 185.000,-

Before the 28th of April you paid 10% tax on the transfer = € 18.500,-

For the notary you paid 1,5% = € 2.775,-

This is a total of € 21.275,-

 

As of 28 April 2021, the costs are:

Transfer 7% tax: € 12.950,-

Notary fees 1,2%: € 2.220,-

This is a total of € 15.170,-

In total, this will save you € 6.105,-

 

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