23/08/2025
03/05/2021
Thomas Harper
Andalusia lowers taxes including Property Transfer Tax and Stamp Duty in move that will boost the market
Andalusia slashes Property Transfer Tax (PTT)
The Andalusian parliament enacted a new law, which has been published in Andalusia’s Official Law Gazette (BOJA), which slashes PTT for 2021. This is a temporary measure devised to offset the negative repercussion of Covid-19 in the property market, and help to foster and kickstart property transactions. It will only last until the 31st of December 2021. So anyone whose thinking on buying a property in Andalusia, better get moving.
Until now, Andalusia followed a sliding scale for ITP that started at 8% and went to 10% contingent on the sale value. This has now been struck off, and a unique tax rate of only 7% applies regardless of the sale value.
Before:
Residential property sale price | Tax rate |
Up to 400,000€ | 8% |
400,001€ – 700,000€ | 9% |
701,000€ up | 10% |
Now:
Residential property sale price | Tax rate |
Any | 7% |
This tax change translates into a massive tax saving for property buyers in Andalusia. Let’s see it with an example. A British couple buy a 500,000 euro property in Andalusia (they are chasing a Golden Visa).
Tax to pay before: €41,000
Tax to pay now: €35,000
Tax savings of 15% or €6,000, for this example.
What’s important to note, is that this tax saving grows exponentially in line with the sale price; the higher the sale price, the larger the % saved in taxes.
Again,with examples. On a 1.5mn sale price, the tax saved is almost 25%. On a 3mn sale price, the tax saved is 27%, and so forth.
This is why buyers sitting on the fence should seriously consider buying now and take advantage of this time-gated opportunity to save a huge amount in transfer tax. I stress this tax advantage ends on the 31st December 2021.
Andalusia reduces Stamp Duty
If the above wasn’t enough, they have also approved to slash Stamp Duty from 1.5% down to 1.2%
Whilst Stamp Duty doesn’t impact on resale property, it does affect off plan ,enacted a new law . Anyone buying new-build property will now make a considerable tax saving with this new tax change. That’s a 20% tax saving, not bad; not bad at all!
