The Andalusian government has decided to extend indefinitely the reduction in tax on property purchases. This is excellent news for those who were planning to buy a villa or flat on the Costa del Sol but did not manage to finalise the purchase this year.
Amount of property tax
Buying a property in Spain involves various additional costs that we need to take into account before making the transaction. Depending on the region where our future home is located, these vary between 7-13% of its value.
A significant part of the additional charges is the value transfer tax. In April 2021, the Andalusian government decided to meet the needs of investors wishing to buy property on the Costa del Sol and reduced the tax rates previously in force. Following the changes, they are as follows:
Secondary market
It was:
– 8% at a price of up to €400,000.00,
– 9% between €400,000.01 and €700,000.00,
– 10% calculated from €700,000.01 upwards.
Now: tax rates have been harmonised and REDUCED to 7%.
AJD – The transfer tax of 1.5% on the price of the property has been reduced to 1.2%.
Primary market
For the purchase of new properties from a developer, the 10% tax remained unchanged. However, analogous to the secondary market, the AJD has been reduced, which is now 1.2% of the value of the property.
Originally, the reduced tax rates were only supposed to last until the end of 2021, but the market situation and the positive impact of the changes made, prompted the Andalusian government to extend the new rates indefinitely.
The Costa del Sol attracts
Homes and flats on the Costa del Sol are currently one of the most desirable addresses in Spain. If we look at the wide cross-section of the region’s recreational offerings(golf courses, beautiful beaches, proximity to the mountains), the multitude of historical monuments such as the Alhambra or Castillo Sohail and the excellent microclimate, it should come as no surprise that properties in Marbella are attracting the attention of businessmen, celebrities and investors from all over the world.
Cooperation with the Agency
When searching for your dream house and flat on the Costa del Sol, it is advisable to enlist the help of an experienced real estate agency. In the age of internet access, we often think we can plan and carry out the entire buying process ourselves, but this is usually a misconception. Knowledge of the market, an understanding of Spanish law or an extensive network of contacts – including lawyers, builders, decorators, etc. – are all aspects that speak effectively in favour of working with an Agency.
What’s more, by using the Agency’s assistance, we are guaranteed access to all current property listings in Spain, including those that are not available online – simply outline your expectations and we will select a pool of listings that meet your expectations. It is also important to emphasise the fact that, in contrast to the standards prevailing in the Polish property market, the BUYING PARTY DOES NOT PAY COMMISSION. Thus, thanks to cooperation with the Agency, we not only save time and resources, but also minimise the stress of searching for the right offer and conducting the entire transaction.
If you are considering buying a property in Spain and would like to find out more about the possible rules of cooperation with Agnes Inversiones, please feel free to contact us: contact@agnesinversiones.com. We are convinced that together we will be able to work out solutions that will meet your expectations.
