Good news for the Andalusian real estate market: the regional authorities reduce transfer tax to 7%.
The transfer taxes for the purchase of real estate through resale in Andalusia have been temporarily reduced from the current tiered rates of 8% to 10% to a flat rate of 7%.
This reduction is now in effect following the publication of the official regional bulletin known as the Boletín Oficial de la Junta de Andalucía (BOJA).
This reduction in the transfer tax (Impuesto de Transmisiones Patrimoniales or ITP) applies to all real estate purchases by resale that take place in the Andalusia region, including Marbella and the Costa del Sol.
Stamp duty for newly built homes have been reduced from 1.5% to 1.2%. The V.A.T. of 10% is unchanged.
This is a welcome initiative by the regional government to boost the economy after the past COVID year, as it offers buyers an excellent opportunity to save on the purchase costs of existing homes.
N.B. Why a tax reduction mainly on existing homes?
Traditionally, newly built homes sell somewhat quicker than already existing homes, although there are reportedly seldom as many sales, including of existing luxury homes, in the high-end segment as in the past 10 months. Moreover, with many new construction projects it was possible to make a reservation, subject to viewing, which happened frequently in the past year. On-site viewing is still normal for existing homes, which has been hampered by travel restrictions. Although the Costa del Sol has been open since June 2020 and the non-essential shops and catering (both indoor and outdoor) were open, most foreigners stayed at home due to the corona restrictions in their own country. For a visit here you only need a negative PCR test, which must be less than 72 hours old. (Look for the specific travel conditions that apply in your country).
However, buyers should be aware that these incentives are only in effect until December 31, 2021.
If you are considering buying a property in Marbella or elsewhere on the Costa del Sol, take advantage of these temporary new benefits.
Keep in mind that the supply of luxury homes in prime locations is still quite scarce and we are expecting a large influx of buyers, now that more people will travel again. As with the current tax reduction that has already taken effect, we recommend that you visit soon, while there is still a good selection, so you can choose the best property for you.
You will find a selection of real estate properties on our website.
For more information or viewings, please contact us.