Transfer Tax in Andalucía drops to a flat rate of 7% only during year 2021


29 Apr 2021

Aimed to help and boost the economy in the region of Andalucía due to the effect of Covid, the regional Government has approved yesterday a reduction of the transfer tax rate from current scale of 8%-9%-10% to a flat rate of 7%, as set on Decree-Law 7/2021 of 27 April that has entered into force today, 28.

Transfer Tax is applicable to the transmission of second hand properties (those that are not subject to VAT such as new constructions; both taxes are incompatible). This new flat tax rate applies to sales made since today till 31 December 2021 exclusively.

The tax scale in force till yesterday was 8% for properties up to 400.000 €, 9% for next 300.000 € and 10% above 700.000 €. For an apartment of 300.000 €, for example, the reduction of 1% means 3.000 € less, but for a villa of 6.000.000 €, for example, the buyer will save 169.000 €.

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