Andalucia is one of the most beautiful and charismatic parts of Spain, home to the fast-growing hub of Malaga and the breathtaking Costa del Sol. If that isn’t tempting enough, property tax in Spain can be steep, and the regional government has just given property-hunters even more reason to invest in the area by revising these figures.
The regional Junta (governing council) has brought forward changes to property tax laws in Andalucia which were slated to come into force in January 2022. These amendments to the Gravamen del Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos Documentados (Tax on Property Transfer and Document Duties) will make it far more cost-effective to buy properties in the region and pay notaries.
Previously, taxes varied between 8 and 10% of the sale value, depending on the value of the residence. However, this has now been reduced to a flat rate of 7% in Andalucia. Meanwhile, the tax applicable for notary documents has fallen from 1.5% to 1.2%.
For those wishing to purchase property in Málaga, the Costa del Sol, or anywhere in Andalucia for that matter, this translates into huge savings, particularly for those buying more expensive residences. Below, we’ll illustrate the savings with a series of example purchase prices:
A region on the rise
Andalucia has suffered a sharp drop in tourism during the pandemic, and regional leaders hope to galvanize the economy once more by lowering the property tax. In Spain, each community has autonomy over its property levies, and many other regions have made similar moves in the past to attract investment.
However, property hunters will be particularly interested in the changes to property tax in Andalucia. Before Covid, the sun-baked southern community was one of the most desirable parts of Spain, home to a huge international community drawn to its sun, sea and laid-back atmosphere.
Now the boom is gaining force again and it’s being led by Málaga, which has become one of Europe’s leading tech hubs, home to clusters of bootcamps and incubation centres. Although Málaga suffered heavily from the Covid-19 pandemic and the resulting loss of tourism, its economy is expected to register growth of up to 7.5% in 2021.
For foreign investors, there are myriad reasons to invest in Málaga and along the Costa del Sol. For one thing, there’s the buzz of a city on the rise, with a youthful population and a growing band of international companies. For another, there’s an amazing education system: Málaga & the Costa del Sol offer British, French and German schools and a string of renowned private universities are fighting for places in the centre hubs.
Then, of course, the Costa del Sol and those crystalline beaches which stretch out beyond Málaga, such as Marbella, Estepona and Fuengirola. The nightlife is slightly slower than you’ll find in Barcelona or Madrid, but for those who want a slightly quieter life (and year-round sunshine), it offers a fantastic option.
With the new property tax breaks, Málaga, Marbella and the Costa del Sol just got even more compelling.
What Lucas Fox offers
Lucas Fox is firmly established in Málaga and the Costa del Sol, with a selection of properties to suit all tastes and styles.
For those wishing to take advantage of the new property tax breaks in Andalucia, Spain, we can offer homes that are built in the chic, modern local vernacular yet are also infused with the character of the area: sun-kissed optimism and chilled-out contentment.
One of our favourite properties is this 85 sq m apartment just a few steps from the beach in La Malagueta, with a spacious terrace to enjoy the views and soak up the sun (with the new property tax breaks in Malága and the surrounding area, you’d save €18,645). We also love this gleaming villa in Nueva Andalucía, Marbella, which offers four bedrooms and its own pool next to Las Brisas golf course (the saving on this one would be an amazing €51,300).
If you want something more old-worldly, we’ve got plenty of masías (country houses) and bodegas (wineries) for sale. To kick off, check out this huge mansion on a 4,590 metre plot, just 20 minutes from the airport.
If you want to find out more about property tax in Spain, arrange a meeting with one of our professional advisors, or browse through our portfolio of properties for sale in Málaga and the Costa del Sol.