Andalucía´s homebuyer taxes rise

Andalucía´s homebuyer taxes rise

The Budget Act of Andalucía for 2012 establishes a tax increase for the purchase of second hand homes.  This increase is specifically noticeable in the Transfer Tax (ITP - Impuesto sobre Transmisiones Patrimoniales) applied in the acquisition of existing homes and Stamp Duty Tax (IAJD - Impuesto sobre los Actos Jurídicos Documentados).

The increase has been in force since January 1st, but went unnoticed because it was published in the Official Gazette of the Junta de Andalucía on New Year's Eve, on December 31st and, also fell on a Saturday.

As of December 31st, 2011, anyone who bought a house for sale in Andalucía was obliged to pay ITP for the value of 7% of housing costs for homes up to 400,000 euros and 8% for the amount exceeding that value.

Since January 1st, the ITP has risen to 8%, if the home is worth less than 400,000 euros, to 9% in the amount between that figure and up to 700,000 euros and 10% if worth more than that amount. In the case of a new home, however, pay only 4% VAT.

However, the rules include a reduced rate of ITP "to promote social housing policy" and the reduced rate will be 3.5%. This rate will benefit the youth, who are under 35 years of age for the purchase of their first residence when it costs less than 130,000 euros or disabled people who purchase their primary residence at a cost of up to 180,000 euros.

With regard to the increase of IAJD, which applies to buying a new house (in addition to VAT) and the establishment of mortgages, the rise will be of 20%.

Thus, if up to Dec. 31st one had to pay 1% of the value of the deed for the first copy of deeds, as of January 1st the amount will be 1.2 % (except for children under 35 years purchase their primary residence for less than 130,000 euros, which applies a reduced rate of 0.3 %, or disabled persons whose housing does not exceed € 180,000, will pay 0.1%).

• By Surestates
• Marbella and Costa del Sol Property News.
• 1 Jan 1970