Andalusia temporarily lowers transfer tax and stamp duty

In this blog of Mercury Abogados in Marbella we are going to analyze the temporary Andalusia lowers transfer tax and stamp duty (ITP and AJD) for the acquisitions of real estate between April 27, 2021 and December 31, 2021. This has been published in the official bulletin (BOJA) of the andalusian goverment Decree-Law 7/2021, of April 27.

Since the declaration of the COVID-19 pandemic by the World Health Organization, the Governing Council of the Junta de Andalucía has been gradually adopting a series of measures of a different nature aimed at mitigating the serious effects that it is experiencing and producing in the region of Andalusia.

In particular, in the tax area, it is necessary to continue implementing tax support measures that seek to mitigate the possible impact that the economic containment scenario may have on the Andalusian economy.

For this reason, with exclusive validity until December 31, 2021, the Tax on transfer tax and stamp duty is reduced in order to promote the economic boost and reactivation of the region of Andalusia.

Specifically, in the transfer tax modality, the general tax rate applicable to the transfer of real estate and the constitution and assignment of rights over them is reduced, except those of guarantee, going from the rates of 8%, 9% and 10% to a single general rate of 7%. Similarly, the general tax rate is reduced for stamp duty modality, for notarial documents, going from the tax rate of 1.5% to the tax rate of 1.2%.

The aforementioned general tax reduction of the transfer tax and stamp duty is intended to achieve a double objective.

The first, to promote and reactivate the real estate sector seriously affected by the crisis. The second objective pursued with this measure is to considerably alleviate the fiscal burden on their access to housing for citizens who, foreseeably, will suffer the most severe effects of the economic crisis derived from the pandemic.

As you can see, this reduction represents a spectacular saving in the costs of buying a property, therefore, we recommend that you contact our expert lawyers in sales and taxes at Mercury Abogados in Marbella for more information.

Thus, do not hesitate to contact our Law Firm in Marbella if you have any questions about purchase, sales and taxes inherent in Andalusia or even to advise you on any other matter. Our expert tax attorneys would be delighted to assist you.