On this news page you can read objective blogs with valuable and relevant topics related to sales, rentals and investments on the Costa del Sol. These news items are intended to contribute to your long and short term real estate goals.
New tax reductions introduced from 28/04/21 until 31/12/21!
The regional government, junta del Andalucía has announced a number of tax reductions to boost property sales.
Until now the progressive transfer tax (Impuesto de Transmisiones Patrimoniales or ITP) was 8, 9 or 10% on top of the purchase price for resale properties, pending on the purchase price. This tax has now been reduced to a 7% flat rate, irrespective of the purchase price. This will save new buyers of properties a considerable amount, which is really welcoming news to both buyers and for the industry.
For new built the VAT rate continues unchanged at 10%, but the duty stamp tax has been reduced to 1,20% (instead of 1,50%).
3 examples of resale properties with tax before the reduction and after
Example 1: Purchase price 200,000€ – tax before = 16,000€, after tax reduction = 14,000€
Example 2: Purchase price 600.000€ – tax before 50,000€, after tax reduction = 42,000€
Example 3: Purchase price 1,000,000€ – tax before 89,000€, after tax reduction = 70,000€
New built example:
Purchase price 500,000€ – VAT remains unchanged at 10%, duty stamp tax before = 7,500€, after tax reduction = 6,000€
