Transfer tax relief extended in Andalusia

Because of the pandemic, the autonomous region of Andalusia reduced registration fees from a progressive rate between 8% - 10% to a flat rate of 7% until 31 December 2021. Stamp duty also went from 1.5% to 1.2%. Now, the measure will also remain in force beyond December 31, 2021. And these reduced transfer taxes in Andalusia remain valid indefinitely.

Aid measure for during corona crisis

The reduction was originally introduced as favour measure for corona crisis. Due to the lockdowns, several real estate transactions were on-hold. To support the property market, the Junta reduced registration fees until 31 December 2021. This yielded handsome savings.

Rush as a result

Because of this favour measure, our office did observe some serious pressure to execute deeds before the end of 2021. We also see that the various NIE services in the province of Málaga are overloaded, so potential buyers are late in obtaining their NIE number. These buyers need fear no more.

Read more about the NIE number.

Measures extended

Fortunately, the Junta of Andalusia published the indefinite extension of the reduced taxes. This means that the ITP and AJD will also remain at 7% and 1.2% respectively after 31 December.

Find the official publication here.

Transfer taxes in Andalusia: concrete savings

Specifically, the ITP remains at 7% of the purchase price. This therefore results in savings for properties in resale.

The AJD - relevant for new construction - remains at 1.2%. VAT remains at 10%.

An example: you buy a property in resale for €600,000. In ordinary times, the ITP than EUR 50,000.00. However, today the ITP is EUR 42,000.00. If you buy a new building, you pay stamp duty in addition to 10% VAT. In this case, the new legislation provides a saving of EUR 1,800.00.

Find out more about purchase costs in Andalusia here.

Do you have any questions about buying property in Andalusia? Then feel free to take below contact on. We can guide you through the entire buying process.

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