Asconfirmed by the Boletín Oficial de la Junta de Andalucía,or BOJA – the official gazette of the Junta de Andalucía– property transactions in the autonomous community, including inSotogrande, will be subject to reductions in both Transfer Tax andstamp duty.
WhileTransfer Tax in the region is being lowered from the previous rate ofbetween 8% and 10% to a fixed 7%, stamp duty is going down from 1.5%to 1.2%. Both of these measures – designed to help stimulate thelocal property market and tempt would-be buyers – will remain validuntil 31st December 2021.
Stampduty is known in Spain as Actos Jurídicos Documentados, or AJD, andis paid by the buyer of a newly-built home. Meanwhile, Transfer Taxis referred to as Impuesto sobre Transmisiones Patrimoniales (ITP),and its payment is the responsibility of a buyer when the propertyunder acquisition is deemed to be a second-hand or resale home.
Whatelse do we know about the alterations to these charges?
TheSpanish-language bulletin explained of the background of the changes,as translated into English: “Since the declaration of the COVID-19pandemic by the World Health Organization, the Governing Council ofthe Junta de Andalucía has been gradually adopting a series ofmeasures of a different nature aimed at mitigating the seriouseffects that it is producing in the Autonomous Community ofAndalucía.”
Thedocument highlighted a decree-law that came into force on 17th March,and which contained “financial and tax support measures to theeconomic sector, streamlining administrative actions and socialemergency measures, to fight against the effects of the evolution ofthe coronavirus (COVID-19)”.
Thegazette continued: “With exclusive validity until December 31,2021, the levy of the Tax on Patrimonial Transmissions and DocumentedLegal Acts is reduced in order to promote the economic boost andreactivation of the Autonomous Community of Andalucía.
“Specifically,in the Onerous Patrimonial Transfers modality, the general tax rateapplicable to the transfer of real estate and the constitution andalignment of real rights over them is reduced, except those ofguarantee, going from the rates of 8%, 9% and 10% to a single generalrate of 7%.
“Inthe same way, the general tax rate is reduced, the Documented LegalActs modality, for notarial documents, going from the tax rate of1.5% to the tax rate of 1.2%.”
Theremight have never been a better time to get into Sotogrande property
Doesthe above seem like a bold claim to you? Here at BM Sotogrande, wecan understand why. However, it is also often said that in times ofuncertainty and difficulty, lies opportunity – and we’recertainly convinced that this can be said of the COVID-19 pandemic.
Afterall, as the BOJA pointed out, last year ended with anapproximately 17% decline in the number of homes sold in Andalucía –according to the National Institute of Statistics – and this wasaccompanied by a fall in prices, especially for resale properties.
Thisis helping to bring about some very attractive deals for housing onthe Costa del Sol at the moment. However, such is the enduringpopularity of property in this part of Spain, that this situation isunlikely to last forever.
Now,then, could be a great moment to act if you’re interested in someof the finest and best-value propertySotogrande has available. Reachout to BM Sotogrande’s experts today, and we’llbe delighted to advise and guide you on the possibilities.
