30 Abr Transfer Tax Reform in Andalusia

The Andalusian Government has approved a decree that includes a reduction of the property transfer tax, which is paid in the sale of second-hand homes for example, so that the three rates currently set at 8, 9 and 10 per cent are now replaced by a single rate of 7% and which is already in force. In addition, a small reduction in the tax on documented legal acts will also be applied, which will go from 1.5% to 1.2%.

This will mean leaving an increase in the coffers of a total of 223 million euros, according to data presented by the Andalusian Government itself. This reduction is part of a broader tax reform that, according to the vice president, will benefit half of the population of the autonomous community, some 4 million taxpayers.

It is a way to reactivate the real estate market, somehow lowering the tax cost of operations. In this way, according to the calculations provided, for a 180,000-euro home, the amount to be paid for the transfer tax would go from 14,400 euros to 12,600 euros, that is, 1,800 euros less. This is a good time to invest in high-value homes, since savings represent between 1 and 3%.

Following these steps, Andalusia would have compensated for the tax reduction with a greater capacity to attract investors and taxpayers.

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