Stamp Duty & Income Tax Cut in Andalusia.

As a property lawyer with 30 years of experience here in Spain I am pleased to see that the government here in Andalusia has cut the Spanish equivalent of Stamp Duty and Income Tax in an attempt to stimulate the property market here in Andalucia.

Instead of 8, 9, or 10% the tax on property transfers will be cut to 7%, if you can complete your purchase before 31.12.21 which is give or take a 2,500 euro saving for someone buying a property valued at say 250,000 euros. I have a number of clients waiting to instruct me as their independent lawyer when they come to buy a place in Spain. Of course at the time of writing they can’t travel to Spain and I don’t advise buying sight unseen, but they will benefit from this reduction in tax and a slightly stronger pound against the euro, so not all has been lost by an enforced stay in the United Kingdom, I am trying to take some positives from the Covid lockdown. So if you plan to move to Spain you have a good few months to have a look and still benefit from the tax cut. The tax on legal acts (AJD) has also been cut from 1.5% to 1.2%.

Hopefully this will stimulate the property sector here in Spain, personally I think that we will see increased activity in the market once UK citizens are allowed to travel to Spain. In the meantime if you’re looking for a property have a look on idealista and fotocasa, these are apps and you can draw the area for your search. There are also sites like Kyero and Rightmove. If it’s a private sale myself or your independent lawyer can help arrange viewings. Remember you can choose any lawyer you wish to act for you in a property purchase here in Spain. Make sure that you get the number of the lawyer so that you can check that they are regulated by the Bar Association here in Malaga or wherever you choose to buy. Do not sign or pay anything until you have had advice from your independent lawyer.

We have offices on the costa del sol but we cover the whole of Spain. We also have a registered tax advisor who can let you know the tax implications if you wish to spend more than 183 days a year in Spain. we can arrange a virtual online consultation by zoom or skype. There are also progressive reductions in income tax which are being introduced over the period from 2019 to 2023. Remember you will need residency or residencia as it’s called if you plan on spending more than 90 days in any 180 day period in Spain. Lastly for the first year of residency you will need private health insurance which we can help with and for the second year and subsequent years you can pay into the Spanish system (convenios especial) and join the equivalent of the Spanish NHS, everyone is accepted regardless of pre-existing condition and there are fixed prices depending on your age.

If you’re looking to buy in Spain we can help, we can also act for you in residency applications, work permits, NIE numbers, becoming self employed (autonomo) as well as buying a property.

As always this isn’t legal advice but if you need a lawyer get in touch with us at Just Law Solicitors.