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Taxes on property transfers in andalucia
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Taxes on property transfers in andalucia

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  • 1. Property Sales Tax Rates in Andalucia (Source AEAT) 1
  • 2. Property Sales Tax Payable in Spain All new properties in Spain are subject to IVA (equivalent to VAT in the UK & Ireland) whereas secondhand properties are subject to ITP (Impuesto de Transmisiones Patrimoniales). IVA is set by the State government and ITP is set by the regional government. 2
  • 3. Property Sales Tax Payable in Spain The Spanish government announced on 19/08/2011 that the IVA rate would be reduced to 4%, down from the standard 8%, in order to promote the sale of vacant new properties in Spain. This specially reduced rate is valid until 01/01/2013 when it will change to 10%. 3
  • 4. Property Taxes in Andalucia In Andalucia the relevant legislation includes Art 23 of Decreto Legislativo 1/2009 which establishes a tax rate of 7% on all transfers of secondhand property. This is subject to alternative rates which apply in certain circumstances as follows. 4
  • 5. Main Home Purchases by Young People Law 11/2010 provides that where the property value is less than €130,000 and the purchaser is under 35 years old and the property is being purchased for the purposes of investing in a main home then the tax rate is reduced to 3.5% 5
  • 6. Special Rate for Properties over €400,000 Ley 08/2010 provides that where the property value is over €400,000 then the sales tax rate is increased to 8% 6
  • 7. Special Rate for Properties over €400,000 Law 08/2010 also provides that where the property in question is a garage (used for storing a car etc) that is not attached to the home, with a value over €30,000 then the tax rate is increased to 8%. If any more than two garages are attached to a property then the increased rate also applies. 7
  • 8. Special Rate for Real Estate Companies By Ley 1/2010 where the person or company purchasing the property is involved in activity which is governed by rules relating to the Real Estate sector then a specially reduced rate of 2% applies - though the property must be sold within 5 years and must figure in the purchaser's current assets. 8
  • 9. For more information or assistance with legal or tax matters from our network of local English-speaking property lawyers in Andalucía, go to: 9 Property Lawyers in Andalucia