The Andalusian government has given the go-ahead for a reduction in the transfer tax (ITP), which taxes the purchase of a used home, to 7%. In this way, the three rates of 8, 9 and 10% disappear. In addition, it also includes a small reduction in the tax on documented legal acts (AJD), which goes from 1.5% to 1.2%. This tax reduction will take effect the day after publication in the Official Journal of the Junta de Andalucía (BOJA) until December 31, 2021.
A fixed rate for the ITP transfer tax of 7% instead of 8% will be introduced. The tax brackets of 9% and 10% will also be abolished. These applied to purchases where the price was higher than 400,000 euros and 700,000 euros respectively. 7% becomes the fixed and sole tax rate regardless of the purchase price.
This measure, which will take effect from the day after publication in BOJA up to and including December 31, 2021, has a dual objective. On the one hand, to promote the reactivation of the real estate sector by reducing the tax costs associated with the acquisition of second-hand housing; on the other hand, to encourage the supply of new construction at more affordable prices, by lowering the tax costs of the AJD modality. Ultimately, the ultimate goal is to ease the tax burden on the purchase of a home.
The Andalusian government approves this legal act in accordance with the urgent measures approved by the Board of Directors to alleviate the crisis situation caused by the Covid.
But beware: This reduction is on Wednesday April 28th. entered into force and all purchases made after this date will benefit from this tax reduction, but only until December 31, 2021!
