GOOD NEWS FOR THOSE WHO WANT TO BUY A PROPERTY IN ANDALUSIA
With the passing of Andalusian Law 5/2021, tax responsibility is now ceded to the Autonomous Community of Andalusia, the tax boost that the regional government introduced in response to the serious economic crisis caused by COVID-19 is now established.
What at first appeared to be a short-lived opportunity to buy a second hand property by 31 December 2021, has now become the long term, so that anyone who wants to purchase a home or any other type of property in Andalusia will pay a general Transfer Tax of 7% instead of the pre-COVID rate of 8% to 10%.
This tax cut is intended to encourage small buyers and investors to purchase properties in the region. We should also mention the reduction in the variable quota of the type of Stamp Duty Tax which, as with the transfer tax, is also confirmed as 1.2% instead of the previous 1.5%.
These measures represent a tax relief for those wishing to buy a property in Andalusia, either as a permanent residence or to enjoy as a holiday home.
This also applies to those wishing to invest in purchasing other properties such as commercial or industrial premises, offices or plots of land. The new law provides other tax benefits for more specific cases. The Tax Department of Konsell Abogados y Asessores (Lawyers and Consultants) will be able to advise clients on anything to make for maximum tax efficiency and with Konsell’s expert advice, clients can take advantage of all of the opportunities the new law brings.