As we had published in idealista previously (Andalusia lowers taxes, including Property Transfer Tax and Stamp Duty -13th May 2021), 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 we 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.
In this tax law, they also lowered a slew of other taxes, such as: IRPF (personal income tax), Wealth tax (patrimonio, in Spanish), Inheritance tax (again!!), taxes on gambling, as well as a plethora of other taxes which are too numerous and off topic to list.
The gist of the matter is that, following this new tax law, Andalusia has become the region of Spain with the lowest taxation (along with liberal Madrid). As we’ve cared to point out in previous articles (Andalusia to abolish inheritance tax in 2019 – 18th March 2019), the new administration, which took office in 2019, is tax-friendly (understatement of the century) and has continued relentlessly with its policy of lowering, negating or downright supressing all taxes across the board.
Frankly, I would need to publish a couple of articles every month only to keep abreast with all the taxes they keep tweaking, lowering, or supressing in a trend which remains unabated since 2019.
The point being that if you are thinking of buying a property in Spain, and you like to pay little to no taxes, think Andalusia. You won’t regret it.
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)
Residential property sale price | Tax rate |
Any | 7% |
Stamp Duty (on buying off-plan)
Off-plan residential property sale price | Tax rate |
Any | 1.2% |
Buy-to-let, a good business
As we have been recommending over the years (8 tips to rent like a pro in Spain (Buy-to-Let) -3rd February 2021), buying property with a view to rent them out as a holiday accommodation is a hugely profitable business. EU-resident landlords can apply for lenient tax relief, which on average is 70%, or more, of their tax bill (for reference, our article: Buy-to-let in Spain: landlord tax reliefs – 23rd May 2019).
Just ask us, our friendly staff will guide you throughout the whole process.
Related articles on idealista:
- Andalusia to abolish inheritance tax in 2019 – 18th March 2019
- Andalusia, now a region in Spain with ultra-low Inheritance & Gift tax laws – 1st August 2019
- 8 tips to rent like a pro in Spain (Buy-to-Let) – 3rd February 2021
- 8 reasons to buy property on the Costa del Sol (Malaga) – 7th April 2021
- Andalusia lowers taxes, including Property Transfer Tax and Stamp Duty – 13th May 2021
- Marbella’s high-end market is booming! – 30th June 2021
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