Transfer tax on resale properties have been lowered to 7%

Published on 3 May 2021 at 12:08

Following the decline in sales in the real estate sector in Andalucia due to Corona, the Andalusian government has decided to reduce the transfer tax.

In the past, when purchasing a resale property, there was a progressive rate:

-8% for <400,000 euros

-9% between EUR 400,000 and EUR 700,000

-10% for everything above 700,000 euros

 

Now this rate is reduced to 7% across all resale properties. This rate is valid for all sales signed at the notary before 31/12/2021 (end of this year).

 

For example, for the purchase of a resale home of 1,000,000 euros: There used to be an

8% on the first 400,000 euros: 32,000 euros

9% on the sum between 400,000 and 700,000: 27,000 euros

10% on everything above 700,000 euros: 30,000 euros

 

In total transfer tax of 89,000 euros on a house of 1,000,000 euros

Now with the new 7% scheme this comes to: 70,000 euros, a saving on purchase of 19,000 euros The transfer tax is valid on all properties in 2nd transfer, in other words not on the new construction where no transfer tax is levied, only the VAT of 10%


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