From April 28, 2021 it is cheaper to buy a second-hand house in Andalucia. This is due to the fact that the Andalusian Government has approved to lower the Property Transfer Tax (ITP), which records the purchase of a used home, to 7%. Until that date there were three tax rates set at 8, 9 and 10%, but when this measure came into force they have merged into a flat tax rate of 7%.
This tax reduction will be felt by the pocket of people interested in buying a second-hand home since it is the highest tax that exists in Spain associated with the purchase of real estate (the percentage of the tax is stipulated by each autonomous community).
This isn't the only home purchase-related tax break approved this week. The general rate of the public deed through which the transfer of a new home is formalized has also been reduced from 1.5% to 1.2%. This tax reduction also translates into lower costs. For example, for a €200,000 home the tax rate with the 1.5% rate would be €3,000 and with the reduction to 1.2% it is €2,400, that is, a further €600 in savings.
These advantageous conditions for buying a home will remain until December 31, 2021. Here you can read the full official text of the approved measures.
As explained by the Government of Andalucia, these measures have been taken to alleviate the tax burden on access to housing, both for the purchase of a second-hand and for the sale of new construction, which has a price a little more affordable. In short, it is intended to achieve the reactivation of the real estate sector and the economy in Andalucia after the crisis generated by Covid-19.
For more detailed information on the taxes and fees that must be paid for the purchase of a home in Andalucia, you can read our specific post on the matter.
Here you can access the statistics on the evolution of the sale of homes in Andalucia from 2007 to the present.
If you are thinking of acquiring a house, we recommend you consult our free guide 'Buying a home in Andalucia' (includes answers to frequently asked questions). You may also search for property in Andalucia on our website property section.
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