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The new government of the Junta de Andalucía reduces the Transfer Tax (ITP) to large families

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The new government of the Government of Andalusia, has agreed a reduction of ITP (second hand housing) and AJD (brand new housing), to large families.

Therefore, a reduced rate is established for the ITP of 3.5% from the 8% that has been paid so far, provided that the purchase of a house does not exceed the value of 180,000 euros. And the Documented Legal Acts Tax (AJD) goes from 1.5% to 0.1%.

If for the purchase of a house valued at 180,000 euros, a family has so far paid 14,400 euros as TPO (Transmisiones Patrimoniales Onerosas) or 2,700 euros per AJD, it will pay 6,300 euros per TPO or 180 euros per AJD. The savings would be 8,100 euros in the first case and 2,520 in the second.

This measure could benefit more than 130,000 large families that exist in Andalusia. This benefit for large families is already regulated in a similar way in other autonomous communities such as Galicia, Cantabria, La Rioja, Murcia, Comunidad Valenciana, Aragón, Canarias, Extremadura, Castilla y León or Madrid.

As for companies, they can choose to tax the purchase of real estate by doing so through VAT or, taking advantage of the VAT exemption provided by law, through the ITP tax.

The agreement of the Governing Council reduces from 2% to 1.5% the rate applied in the AJD tax to companies and self-employed who acquire real estate renouncing VAT exemption. In this way, the rate is lowered to the level of communities such as Madrid, Asturias or La Rioja.

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