The Andalusian Government has approved a reduction of the general transfer tax rate (ITPAJD) to promote Andalusian’s property market

The Andalusian Government has approved a decree-law that reduces the general rate of the Transfer Tax (ITPAJD) to promote Andalusian’s economic reactivation and to alleviate the crisis generated by the pandemic. The decree-law will enter into force today 28th April 2021 (the day after its publication in the Official Gazette of the Junta de Andalucía (BOJA)) and will be in force at least until 31st December 2021.

The measure includes reducing the general tax rate applicable to the transfer of real estate and the constitution and transfer of real rights over them, decreasing the current rates of 8%, 9% and 10% to a single general rate of 7%. Similarly, the Stamp Duty (Documented Legal Acts) is reduced from 1.5% to 1.2%.

The measure pursues a double objective. Firstly, to promote the reactivation of the real estate sector, incentivising the acquisition of second-hand homes, and secondly, to encourage the supply of new construction at more affordable prices to the consumers. Therefore the ultimate purpose is to alleviate the tax burden on accessing housing.

These measures will impact at least 4 million people, with an estimated taxes saving of €329 million. These are great news for clients who are interested in investing in this region of Spain.

You can read more details here.