Andalucia lowers its taxes even further
Andalusia lowers its taxes even more, thanks to Juanma Moreno’s elimination of the wealth tax.
· 3 min. read
Andalucia has become one of the only two autonomous communities with the lowest taxes in Spain
Further to the Andalucian Regional Government’s efforts to reduce taxes across the board, the president of the Junta, Juanma Moreno announced on September 19th, the elimination of the Wealth Tax in Andalucía, making Andalucia lowers its taxes even further and one of only two autonomous regions in Spain with the lowest taxes and represents one of the most positive steps possible to encourage families to buy in the region.
The much-loathed Wealth Tax was discouraging many individuals and families, both Spanish and foreigners, from buying properties and settling down permanently in Andalucía, and the scrapping of this tax will provide an immediate, important further increase in property sales in the luxury category of properties, especially with respect to the more expensive ones where the Wealth Tax could range up to several hundred thousand euros every year.
Wealth tax in Andalucía to be scrapped from Wednesday this week.
SurinEnglish.com 19.09.2022
These measures are a further step towards attracting new tax residents, both Spanish and foreign equally, consolidating the autonomous community of Andalusia as one of the most attractive destinations for both individuals and investors and giving an important boost to the general economy of Andalucía.
Other accomplishments achieved by the current regional government include:
- The virtual elimination of the Inheritance and Gift Tax, effective on 11 April 2019 with respect to spouses, children, grandchildren and parents. The tax was reduced by 99% for these groups, and now simply serves as a “control” tax. Further reductions were made to additional groups in early 2022.
- In April 2021 the Property Transfer Tax was lowered by up to 3% until the end of 2021, to a flat 7% and the stamp duty was lowered from 1.5% to 1.2%. This was a temporary measure designed to offset the negative repercussions of Covid-19 in the property market and help foster and kickstart property transactions. In October 2021 these lower tax rates were extended indefinitely to 2022 and beyond, giving an amazing incentive for buyers which was, in part, manifested by the market upturn in 2022.
- There have been numerous tax reductions at the beginning of 2022, including many taxes affecting young people, and significantly a reduction of Income Tax corresponding to Andalucía, positively affecting all tax residents with high incomes.
- On 23rd December 2021, new regional legislation known as “LISTA” came into effect. The legislation modernises and simplifies planning permissions and land use, shortening the time for municipalities to make new general plans. This is the most significant legislation affecting real estate development in Andalucía that has ever been passed.
While the regional government is not making Andalucía a tax haven – far from it – the new tax reductions already made and those on the drawing board give, and will give, tremendous benefits to all foreigners living here, whether it’s for all or just part of the year, when compared to almost all other autonomous regions in Spain.
Further information and source:
“Wealth tax in Andalucía to be scrapped from Wednesday this week”
SurinEnglish.com 19.09.2022
