New tax reductions introduced from 28/04/21 until 31/12/21!
The regional government in Seville has announced a number of tax reductions to boost property sales.
Until now the progressive transfer tax was 8, 9 or 10% on top of the purchase price for resale properties, pending on the purchase price. This tax has now been reduced to a 7% flat rate, irrespective of the purchase price. This will save new buyers of properties a considerable amount, which is really welcoming news to both buyers and for the industry.
For New Built the VAT rate continues unchanged at 10%, but the duty stamp tax has been reduced to 1,20% (instead of 1,50%).
Below are 3 examples of resale properties, with tax before the reduction and after
Example 1: Purchase price 200,000€ – tax before = 16,000€, after tax reduction = 14,000€
Example 2: Purchase price 600.000€ – tax before 50,000€, after tax reduction = 42,000€
Example 3: Purchase price 1,000,000€ – tax before 89,000€, after tax reduction = 70,000€
New built example:
Purchase price 500,000€ – VAT remains unchanged at 10%, duty stamp tax before = 7,500€, after tax reduction = 6,000€