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. With the plans to ease travel restrictions hopefully coming into effect later in the summer and travel within the provinces of Andalucia now permitted it is a very positive step.
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. We can act for you as independent lawyers and quickly provide individual quotes for your property purchase.
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.
Guarantees, resolutory conditions and securities over land or property will continue to be charged at 1%. The tax reductions that are available for under 35’s and other groups such as for the disabled or large families remain the same.
If you are a property owner in Andalucia who needs to update or modify your property registration, for example if you have a pool which is not registered, you can now take advantage of the reduction in the stamp duty tax. We can advise on your individual case and provide a quote for the fees and costs. Having your registration and documentation up to date can help in selling your property over the coming years.
For those looking to buy property in the region, whether a coastal Town House or a large rural property with land we can review the documentation and provide independent advice on your purchase. If you have found the property you want to buy in Andalucia we offer an initial free consultation if you quote reference Blog @ De Cotta Law. Do contact us on + 952 931781 or 952 527014 or email on [email protected] or email Jon Sutton [email protected]