Good news for house hunters looking to buy in The Lecrin Valley! The Andalusian Government has confirmed permanent tax reduction on the purchase of homes in Andalusia.
The Andalusian Parliament has just adopted a new law that will reduce the ITP Transfer Tax in Andalusia to 7%, permanently!
The Junta de Andalucia had already reduced the Transfer Tax (ITP) from 8% to a fixed (unique) rate of 7% for all property purchases completed in 2021, which meant a significant reduction for those completing before the end of the year.
While 1% may seem like a small amount, it represents a €3,000 saving on a purchase of €300,000.
Prior to this reduction, 8% of the purchase price had to be paid on property up to 400,000 euros, 9% between 400,000 and 700,000 euros and a hefty 10% on properties over 700,000 euros.
The new law means that anyone in the process of buying a resale property in Andalusia will now pay the ITP Transfer Tax at a fixed rate of 7% (across all property values), regardless of whether the transaction completes in 2021 or not.
This alleviates the stress of current transactions that no longer need to scramble to complete before the former 31 December deadline.
This permanent tax reduction is welcome news for the Andalusian property market and a definite positive for all current and future Buyers of Andalusian property.
Coupled with the ongoing low interest rates and some great fixed rate mortgage deals, it’s a very good time to buy in the Lecrin Valley.