On April 27, the Junta de Andalucia announced the approval of a new Decree for the reduction of some tax rates in Andalucia with the idea of reactivating the economy of the region. Among this new measurements, there is one that affects directly, and extremely positive, the real estate market, one of the sectors they are trying to promote, that is the reduction on the rate on the Transfer Tax applicable to all purchases of properties in Andalucia.
The Decree establishes that the actual rates of 8% (for purchases up to 400.000 €), 9% (on top of 400.000 € and up to 700.000 €) and 10% (for the excess on top of 700.000 €) will be reduced to a unique general rate of 7%. For example, on a purchase of a 1.000.000 € property, the Transfer Tax was previously 89.000 € and has been reduced to 70.000 €. That is a 21% reduction on the Tax.
Additionally, there is a reduction on the Stamp Duty Tax from 1,5% to 1,2% that affects mainly to the purchase of new units.
The only not-so-positive could be that this new regulation is going to be in place only to December 31st, 2020 although we hope that it will be extended further. In any case, it is a really good opportunity for those buyers that may want to take advantage of this reduction in the Tax before the end of the year.