Thanks to a new tax revision currently under process, Andalucía’s regional government – the Junta de Andalucía – has reduced property taxes for the duration of 2021. This means that people buying a property in Andalucía until December 31st 2021 will save between a few thousand and up to hundreds of thousands of euros on purchasing fees and costs.
The move is a welcome one for vendors, homebuyers and investors alike, and designed to support and stimulate the regional property market, though in Marbella sales and home prices have maintained themselves far better than expected during the Covid-related challenges of the past year. This is partly due to the fact that the Marbella has continued to be highly in demand among international buyers of luxury real estate, as it offers the climate, setting, infrastructure and services demanded by those who wish to own a second property or relocate permanently to this part of Europe.
Property Transfer Taxes reduced
Even so, the willingness of the regional government to support the local economy is welcomed, and while it will reduce the overall burden for taxpayers in Andalucía to the tune of €329 million over 2021, for buyers of luxury homes in Marbella and surroundings it will amount to significant savings.
The current Property Transfer Tax (Impuesto de Transmisiones Patrimoniales – ITP) has been reduced to 7% from a variable rate of 8%, 9% and 10%, meaning that buyers of property in the higher, luxury price segments will save three percentage points of the purchasing price in transfer tax alone. This could be anything from €60,000 to €200,000 on a property of €2 million and upwards.
Stamp Duty (Actos Jurídicos Documentados – AJD), has similarly been lowered from 1,5% to 1,2%, and taken together with the transfer tax, the savings on luxurious villa can amount to the value of a small apartment!
We therefore recommend those people thinking of purchasing a property in Marbella to speak to us and find out more about how buying in 2021 can make it an even more attractive proposition.