02 Jun Reduced tax rate ITP 2% for the acquisition of homes for resale by real estate professionals in Andalusia

Today we are going to talk about a very interesting topic, in relation to the possibility that real estate professionals dedicated to buying and selling in Andalusia, can benefit from the application of a reduced rate of 2% in the payment of the Tax on Patrimonial Transmissions and Acts Documented legal (ITP), in the acquisition of second-hand real estate. The application of this reduced ITP 2% rate is regulated in article 36 of Legislative Decree 1/2018, of June 19, which approves the Consolidated Text of the provisions issued by the Autonomous Community of Andalusia in matters of assigned taxes.

Article 36. Reduced tax rate for the acquisition of homes for resale by real estate professionals.

1.In the modality of Onerous Patrimonial Transmissions of the Tax on Patrimonial Transmissions and Documented Legal Acts, the tax rate of 2% will be applied to the acquisition of a home by a natural or legal person who carries out a business activity to which the adaptation rules apply of the General Accounting Plan for the Real Estate Sector, provided that the following requirements are met:

a) That the acquirer or legal entity incorporates this home into their current assets.

b) That the acquired home be transferred within the five years following its acquisition with delivery of possession of it, and provided that this transfer is subject to the Tax on Patrimonial Transmissions and Documented Legal Acts. This period will apply to the acquisitions of real estate for resale by real estate professionals made from March 19, 2008.

2.Surety liquidation will be practiced for the part of the quota resulting from the difference between the application of the general tax rate and the reduced tax rate foreseen in the previous section in the terms established in article 5 of the Consolidated Text of the Law on Capital Transfer Tax and Documented Legal Acts, approved by Royal Legislative Decree 1/1993, of September 24.

3.The accreditation of compliance with the necessary requirements for the application of the reduced tax rate provided for in section 1 of this article will be carried out in accordance with the following rules:

a) The circumstance of being a taxpayer to whom the adaptation rules of the General Accounting Plan of the Real Estate Sector are applicable will be accredited by means of a certification of being registered in the corresponding heading of the National Classification of Economic Activities. Said certification must be presented together with the self-assessment of the tax and may be replaced by registration in the corresponding census of the competent Ministry of Finance.

b) The circumstance provided for in paragraph a) of section 1 of this article will require the taxpayer to state in the document that formalizes the transfer his intention to incorporate the property into his current assets.

c) The provisions of the preceding paragraph shall be understood without prejudice to the administrative verification that may be carried out.

d) Compliance with the requirement set forth in the paragraph b) of section 1 of this article shall be understood to have been fulfilled with the execution of the public deed of sale.

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