Property transfer tax drop to 7% in Andalucía approved!

The Andalusian government has approved this Tuesday, April 28, 2021, a temporary reduction of the property transfer tax (ITP) to a single linear rate of 7%. The previous ITP rates of 10%, 9%, and 8% to will be replaced by a single rate of 7%. Additionally, Stamp Duty will decrease from 1.5% to 1.2%.

According to the vice-president of the Junta, Juan Marín, the reduction of the ITP has been advanced to invigorate the second-hand property market in the region, while the reduction of Stamp Duty should encourage the supply of new construction at more affordable prices.

The measure will be in effect from the day following its publication in BOJA until December 31, 2021.