Tax rebate in Andalusia 2021
Tax reduction of taxes in Andalusia in 2021
The Junta de Andalucía carries out an important tax reduction for 2021.
New tax measures in Andalusia on housing: tax reduction for 2021
Juanma Moreno, president of the Junta de Andalucía, announced this April 27 a reduction in taxes in the community to alleviate the economic effects of covid19.
Said reduction will enter into force on April 28 and will last until December 31, 2021.
Specifically, the agreed package includes six sections: Personal Income Tax, Wealth Tax, Inheritance and Donations Tax, Tax on Property Transfers and Documented Legal Acts, Special Tax on certain means of transport and Taxes on gambling.
How does the tax reduction affect the purchase of housing?
Among the new measures adopted by the Junta de Andalucía, the reductions in property transfers, documented legal acts, donation and inheritance taxes and property tax stand out.
The objective of the new measures is to encourage the purchase of homes in 2021 by lowering the costs inherent to the purchase.
One of the great inconveniences that buyers find when buying a home is the numerous expenses that occur when buying.
Without a doubt, the highest expense is the property transfer tax, which Andalusia has a general rate of 8% on the purchase value.
As an example, in a purchase of €200,000 the buyer would have to pay the amount of €16,000 in property transfers.
Property Transfer Tax:
The decree law that lowers the general rate of the Property Transfer Tax consists of the reduction of the general tax rate applicable to the transfer of real estate and the constitution and transfer of real rights over them, except for guarantee rights, going from the current rates from 8%, 9% and 10% to a single general rate of 7%.
In this way it is cheaper when buying a second-hand home, since the highest cost is cheaper.
With the previous example, instead of paying €16,000 in ITP, the buyer would have to pay €14,000, achieving a real discount of €2,000.
Documented Legal Acts:
Another of the most outstanding new measures is the reduction of the documented legal act.
The new general tax rate drops from 1.5% to 1.2%.
Said tax is paid in case of extinction of the condominium, segregation, change of use and on other occasions.
This measure also encourages the sale of new construction homes.
These two measures, according to the calculations of the Junta de Andalucía, will affect more than 275,000 people who will benefit from these measures.
Reduced tax rates for property transfers and documented legal acts: Andalusian tax reduction
In the Tax on Property Transfers and Documented Legal Acts reduced tax rates are reduceds for the purchase of habitual homes whose real value does not exceed 150,000 euros. The first goes from 7 to 6 percent and the second, from 1.2 to 1 percent.
In the Property Transfer Tax The reduced rate of 3.5 percent is maintained for those under 35 years of age, large families and the disabled, raising the maximum value of the home from 130,000 to 150,000 euros for young people and from 180,000 to 250,000 euros for the remaining groups. The application of this reduced rate is extended to victims of gender violence and terrorism and to municipalities with depopulation problems.
The lien for documented legal acts it remains at reduced rates for people with disabilities and large families and the application of 0.3 percent is extended to the groups included in the previous section. This measure as a whole would affect some 19,700 taxpayers.
How long are the new measures?
Said reduction will enter into force on April 28 and will last until December 31, 2021.
What does the government of the Andalusian Government expect with this tax reduction in Andalusia in 2021?
These fiscal measures seek to favor the reactivation of the economy by lowering direct and indirect taxes in the Andalusian community.
The health crisis derived from covid19 became an economic crisis at a national and global level, with Andalusia being one of the most affected communities as its economy depends directly on tourism and restaurants, without a doubt, the two most damaged sectors.
Although the sale and prices of homes have not suffered particularly during this period, despite the voices announcing a drop in prices similar to that of the 2008 crisis, these measures will also encourage the purchase of homes in Andalusia .
In addition, with these discounts, all those who buy a home can benefit regardless of their purchasing power or the value of the home they purchase, being a discount that will affect everyone equally.
In this way, the government of Juanma Moreno seeks to increase the income obtained despite the discounts, by thus increasing the number of operations carried out between now and the end of 2021.
How can I benefit from the new tax measures?
When paying taxes for the purchase of a property, you will have to indicate the type of tax that you accept.
In the event that it is a reduced tax due to being under 35 years of age, a large family or disabled, you must justify the reason for the reduction with documents.
Processing of the property transfer tax and documented legal acts in Malaga
In the event that you acquire a property through bank financing, the bank agency will be in charge, after payment, of processing and paying the taxes.
But if you have acquired a property in Andalusia without financing or intervention from any bank, you are responsible for paying taxes on the date and form.
At Valoracasa Inmobiliaria we offer our buyer clients a management service that is responsible for filling in and processing the autonomous models free of charge.
We will take care of processing and changing the ownership of the property in the property registry for your peace of mind.
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