PROPERTY PURCHASE TAX AND STAMP DUTY

Andalusia slashed its taxes on buying property (both on resale and off-plan property) in a bid to combat the adverse effects of Covid-19 in the economy. As highlighted at the time, these tax breaks were conceived to be only temporary and were time-gated. They were set to end on the 31st of December 2021.

However, Andalusia approved a new pivotal tax law in October ’21 that has now made these tax breaks on buying property permanent. In other words, the Junta de Andalucia has now extended the generous tax breaks on buying property to 2022, and beyond. No longer are they time-gated to the end of this year.

It has been stated a 7% tax rate for Transfer Tax and a 1.20% tax rate for Stamp Duty, both for
an indefinite period. These tax rates were already in force in Andalusia on a transitory basis
until December 31,2021 and through Act 5/2021 their application has been extended
indefinitely.

Going forward, these are now the permanent tax rates that apply in the region of Andalusia on buying property:

Property Transfer Tax (PTT) (on buying resale)

Stamp Duty (on buying off-plan)