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Non-Resident Imputed Income Tax end-of-year reminder (NRIIT) 2020

Raymundo Larraín Nesbitt, December, 1. 2021

The clock is ticking. If you are non-resident, and you own property in Spain, this is your last chance to file your Non-Resident Imputed Income Tax for year 2020. Even if you do not rent it out, you need to file this end-of-year tax. We file taxes online all over Spain.

Marbella-based Larrain Nesbitt Abogados has over 18 year’s taxation & conveyancing experience at your service. Our team of native English-speaking lawyers and economists have a long track record successfully assisting expats all over Spain. You can review here our client’s testimonials.

Blog post copyrighted © 2021. Plagiarism will be criminally prosecuted.

By Raymundo Larraín Nesbitt
Lawyer – Abogado
1st of December 2021

 

The end of 2021 fast approaches.

One of our last blog posts for this year, is a gentle tax reminder.

All non-residents, who own property in Spain, need to file by the end of this year a tax called Non-Resident Imputed Income Tax (NRIIT, for short), even if you do not rent out your Spanish property. You are taxed on the previous year (2020).

We offer the following taxation service for a flat fee of 100 euros plus VAT/year.

We file your tax online within 24 hours.

Our last day to file this tax in 2021 is Wednesday the 22nd of December.

 

We offer the most competitive fees in the market.

Non-Resident Imputed Income Tax (Fiscal Representation Service) €100/year

We are specialized in taxation

 

Larraín Nesbitt Lawyers, small on fees, big on service.

Larraín Nesbitt Lawyers is a law firm specialized in taxation, conveyance, immigration & residency, inheritance, and litigation. We will be very pleased to discuss your matter with you. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on (+34) 952 19 22 88 or by completing our contact form.

Legal & tax services available from Larraín Nesbitt Abogados (LNA):

 

Please note the information provided in this blog post is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. VOV.

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Now is the right time to buy property in Spain

Raymundo Larraín Nesbitt, November, 21. 2021

Marbella-based Larraín Nesbitt Abogados (LNA) has over 18 years’ taxation & conveyancing experience at your service. We offer a wide range of 50 legal and corporate services. Our team of native English-speaking lawyers and economists has a long track record successfully assisting expats all over Spain.

You can review here our client’s testimonials.

Article copyrighted © 2021. Plagiarism will be criminally prosecuted.

By Raymundo Larraín Nesbitt
Abogado - Lawyer
21st of November 2021

 

As we have been pointing out over the last year, a series of factors have built up to create excellent buying opportunities. Real estate experts share a general consensus that now is the right time to buy property in Spain, specifically in Andalusia.

  1. Ultra-low taxation. As we’ve covered in previous articles (Andalusia lowers Property Transfer Tax and Stamp Duty), early on this year Andalusia drastically reduced the taxes on buying property, to the point we have never seen such low taxes in this region. Furthermore, the tax breaks on buying property have now been extended indefinitely, so they are no longer time-gated. The Junta de Andalucia has also approved a batch of measures to also cut down several other taxes (Inheritance Tax, IRPF, Wealth tax etc) turning Andalusia de facto into an ultra-low taxation area, along with Madrid. In plain English, Andalusia and Madrid are now the two areas where you pay fewer taxes in all of Spain. And last I checked, Madrid had no beach, so the choice is easy. To sum up, the continued landmark tax changes implemented by the new regional government since April 2019 (lowering, negating or supressing them) are so eventful they have ushered in a new era of wealth-planning in Andalusia.
  2. Ultra-low interest rates. Interest rates are sitting now at an all-time low, which enables would-be buyers to secure cheap loans (fixed interest is your best bet if the ECB hikes the interest rate in the future to offset a spike in inflation). Bank loans become ‘cheaper’ as inflation rises, as you actually owe less money to your lender (in real terms).
  3. Pandemic & Brexit induced price reductions. The ongoing pandemic and Brexit have forced sellers to reduce their asking price creating once-in-a-lifetime buying opportunities for savvy investors.
  4. Bull market. In Andalusia, we are undergoing since April 2021 a property boom that has prompted a rise in property prices, specifically in coastal areas. Property is appreciating an average of 8% p.a. in coastal resorts and rising YOY. In some exclusive locations, such as Marbella, property prices have risen by over 30% over the last two years.
  5. Spike in inflation. In a financial context of a sharp rise in inflation, having your money stuck in a bank is a losing proposition. In an inflationary environment, money depreciates fast losing its value day-to-day. Finance experts agree that a smart way to hedge your savings against rising inflation is to take on a mortgage loan and invest in real estate to avoid losing purchasing power over the long run as bank deposits devalue over time with high inflation. This was the key strategy that many savvy investors followed in the 70’s, during a time of high inflation, which in hindsight made them very rich.
  6. Buy-to-rent. Annual rental yields are over 5% net. If you also add on top the capital appreciation (point 4 above), you are looking at a safe investment that is netting you over 10% p.a. risk-free. No other safe investment offers you such yields in a context of an underperforming bond market. In addition to this, the Spanish Tax Office offers lenient tax breaks which on average reduce landlord’s tax bills by 70%, or more (if EU-resident). A landlord can offset most, if not all, of their property-related expenses, vastly reducing their income tax on buy-to-lets (i.e. holiday rentals). More on this topic in my articles: Rental prices soar for 5th consecutive year in Spain! and 8 Tips for Buy-To-Let Success in Spain.
  7. Pound rally vs. Euro. Following up on point two above, expectations are high the BoE will raise the interest rate to combat the pernicious effects of inflation. In anticipation of this move, the pound rallied, since April this year, appreciating significantly against the Euro. This translates into UK buyers having greater 'purchasing power' on buying euro-denominated property. In plain English, any property in euros becomes much cheaper for sterling pound purchasers.

In short, it’s never been safer and more profitable to buy property in Andalusia than today. Don’t fight the current and move with the flow; take full advantage of Spain’s real estate property boom.

Are you really going to miss out?

At LNA we can assist you buying, selling or renting out your property in Spain. We have 18 years’ experience in conveyance & tax. We are also specialized in Immigration & Residency permits.

Larraín Nesbitt Abogados, small on fees, big on service.

Larraín Nesbitt Lawyers is a law firm specialized in taxation, inheritance, conveyancing, residency, and litigation. We will be very pleased to discuss your matter with you. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on (+34) 952 19 22 88, or by completing our contact form to book an appointment.

Related services:

 

 Please note the information provided in this blog post is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. VOV.

2021 © Raymundo Larraín Nesbitt. All Rights Reserved.

 

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Is age a thing on requesting a Spanish residency permit?

Raymundo Larraín Nesbitt, November, 18. 2021

Marbella-based Larraín Nesbitt Abogados (LNA) has over 18 years’ taxation & conveyancing experience at your service. We offer a wide range of 50 legal and corporate services. Our team of native English-speaking lawyers and economists has a long track record successfully assisting expats all over Spain.

You can review here our client’s testimonials.

Article copyrighted © 2021. Plagiarism will be criminally prosecuted.

 

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Lawyers
11th of November 2021

Officially no, in practice there are some snags.

The reason being is that all visa permits, including a Golden Visa, have as a staple requirement in Spain that an applicant must hire private health insurance from a Spanish-based company.

Most Spanish health providers do not insure applicants over the age of 70 years old. None insure over the age of 75 years old full cover, at least to our knowledge.

This in practice translates indirectly to vetting any applicant over the age of 75 y.o. In effect, no candidate over 75 is eligible for Spanish private healthcare which in turn means your visa application is simply thrown out and you fail one of the core requirements common to all visa permits in Spain.

So, if you are thinking of making the move to Spain, at some point in your life, please, for your own sake, make sure you do not leave it until it is too late. Always apply for Spanish residency permits under the age of 75 y.o.; I would even go further, recommending the age of 70 to be on the safe side.

 

LNA has a 100% track record attaining Spanish residency

 

Larraín Nesbitt Lawyers, small on fees, big on service.

At Larrain Nesbitt Abogados, we have assisted hundreds of EU and non-EU nationals to successfully attain a Spanish residency permit.

Interested? Come and speak to Larraín Nesbitt Abogados’ friendly staff who will be pleased to guide you through the different residency options, choosing the one that appeals to you most. Your family’s success is only one call away: (+34) 952 19 22 88.

Residency services available from LNA:

 

Related visa articles

 

Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. No delusional separatist politician was harmed on writing this article. VOV.

2.021 © Raymundo Larraín Nesbitt. All Rights Reserved.

 

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Plusvalia tax reinstated in Spain as from 10-11-2021

Raymundo Larraín Nesbitt, November, 11. 2021

Lawyer Raymundo Larraín briefly walks us through the new revamped plusvalia tax law.

Marbella-based Larraín Nesbitt Abogados (LNA) has over 18 years' taxation & conveyancing experience at your service. We offer a wide range of over 50 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record of successfully assisting expats all over Spain.

You can review here our client’s testimonials.

Article copyrighted © 2021. Plagiarism will be criminally prosecuted.

 

By Raymundo Larraín Nesbitt
Lawyer - Abogado
11th of November 2021

As readers may recall, Spain’s Constitutional Court overturned plusvalia tax last 26th October 2021. We published a detailed article at the time. The legal effects would come into force as from the next day this landmark ruling was published in Spain’s Official Law Gazette (BOE, in Spanish), as with any other law. We advised at the time that it was highly likely a new law would be approved soon (days or weeks), so chances to wriggle through scot-free were slim at best.

Yesterday 9th November 2021, in an absolute record-time that would even make Usain Bolt blush in shame, the Spanish Government published the new revamped plusvalia tax which came into force yesterday 10th of November 2021. Gosh, I wish tax rebates were processed so fast! This new law, despite what was initially claimed by Spanish Tax Authorities, has in fact no retroactivity to the 26th October. Yay.

However, we are still awaiting the High Court’s ruling of last 26th October to be published in the BOE … and two weeks on we are still waiting and waiting. Aww.

The jaded me would say the key ruling has been ‘hijacked’ by the powers that be, but surely this cannot be the case in a Western EU Democracy under the Rule of Law, right? Certainly not, God forbid! I’ll slap myself on the wrist for having such dark thoughts.

Anyway, before I digress further into a rabbit hole, the point being is that plusvalia tax is reinstated as from today.

So, if you are:

  1. Selling property
  2. Gifting property
  3. Inheriting property

You need to pay plusvalia tax as from today.

Everything done and dusted, yes? Well, no.

Because, what happens with all the transactions that took place between the 26-10-2021 and the 09-11-2021? Had the Hight Court’s ruling been published, it would be clear cut that no plusvalia tax was to be paid in those two weeks. But then, the landmark ruling was never published in Spain’s BOE.

Also town halls need months to adapt their own local bylaws to this new tax law which brings into question what happens in the interim with all ongoing transactions?

Finally, questions are being raised on whether it's constitutional to approve a law that creates a tax as a Real Decreto-ley (such as yesterday’s) because, in strict accordance with the hierarchy of our laws, this is reserved only to a higher-ranking law (Art 133.1 of Spain’s Constitution, our Supreme law) approved by Congress itself. A Real Decreto-ley is just a law passed by the Government, but it is not enacted or ratified by our Congress. This, from a legal perspective, has huge legal implications. Which leaves the door ajar for lawyers to challenge yesterday’s law on grounds of being unconstitutional.

This would mean the new revamped law of yesterday - that was approved precisely to replace a law that had been overturned on grounds of being unconstitutional - could be yet again overturned by Spain’s Constitutional Court on grounds of being unconstitutional in a Kafkian turn of events. Are you still with me? You really couldn’t make it up.

I think I need a drink.

 

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Please note the information provided in this blog post is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. No Thu'um was used against Skyrim's dragons on writing this article. VOV.

2.021 © Raymundo Larraín Nesbitt. All Rights Reserved.

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Plusvalia tax overturned by Spain's Constitutional Court

Raymundo Larraín Nesbitt, November, 2. 2021

Lawyer Raymundo Larraín briefly explains the high court’s landmark ruling.

Marbella-based Larraín Nesbitt Abogados (LNA) has over 18 years’ taxation & conveyancing experience at your service. We offer a wide range of over 50 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record of successfully assisting expats all over Spain.

You can review here our client’s testimonials.

Article copyrighted © 2021. Plagiarism will be criminally prosecuted.

 

By Raymundo Larraín Nesbitt
Lawyer – Abogado
27th of October 2021

Yesterday 26th October 2021 it was announced that Spain’s Constitutional court declared null and void a series of articles which in practice translated into eliminating plusvalia tax. The exact details of the ruling remain unknown as it has still not made public but is expected to be released within the next days.

  • Plusvalia tax is one of two taxes owners pay on selling property in Spain (along with capital gains tax). We explain this in detail in our taxation article: Taxes on selling property in Spain – 8th December 2014
  • Plusvalia tax is also paid on inheriting property in Spain (along with inheritance tax). We explain this in detail in our taxation article: Spanish Inheritance Tax for Non-residents (Part I) – 8th March 2016

 

Plusvalia tax had been under flak over the last 4 years by the Constitutional Court which had declared in no less than four occasions that some parts of the law were annulled. The most prominent ruling was one which basically declared it void when seller’s sold property at a loss in Spain. In such a case, sellers could file a tax rebate on it. We published a detailed article at the time: Selling property at a loss in Spain: ‘Plusvalía’ tax no longer payable – 18th May 2017

However, the significance of this week’s ruling is simply groundbreaking. On this occasion the articles that have been annulled are of such relevance, that in practice make it impossible to calculate the tax; and therefore, to all intents and purposes, plusvalia tax has been suppressed.

Plusvalia tax raises every year over 2.5bn euros in revenue and municipalities (read town halls) are heavily reliant on it to finance themselves. The elimination of this tax will no doubt endanger the finances of thousands of town halls across Spain.

The tax office has wasted no time to announce that it will review the tax urgently, in light of the Constitutional’s Court ruling, and reinstate it as soon as possible.

Where does this leave us?

It means that if you are selling property or inheriting in Spain – and only for the time being – you do not need to pay plusvalia tax, at least in theory.

However, in practice, as we still have no access to the ruling itself, I strongly recommend plusvalia tax is paid. Once the ruling is out and made public, your appointed lawyer can then file a tax rebate clawing it back. I think it is only prudent. Bear in mind the tax itself has not been annulled; what has actually been declared void is how to calculate it, which is different. So, in purity, the tax obligation is still very much in force by local administrations but it cannot be calculated in practice. I know, clear as mud.

The bottom line is to pay first and then file a tax rebate on the back of this week’s high court ruling. I hope that clarifies.

Retroactivity?

This ruling has no retroactive effects.

However, that said, I’m pretty confident some colleagues will fight their corner and try to force retroactive effects on it.

But as of right now, it has no retroactive effects. Meaning that anyone that sold property or inherited prior to this ruling being published needs to pay this tax.

However, all those selling or inheriting after the ruling is published, will be exempt from paying plusvalia tax, at least for the time being.

Is this tax change permanent?

Not by any means. Town halls are hugely dependent on this tax to finance themselves, so it must be reinstated or else a new tax needs to be urgently approved to replace it and plug the budgetary void its absence will create.

As stated above, the Spanish Tax Office is already busy working to reinstate the plusvalia tax as soon as is possible. The window of opportunity to be exempt from paying this tax is slim. Perhaps only a matter of weeks, or months at most.

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Article originally published in Spanish Property Insight on the 27-10-2021: Spain’s Constitutional Court eliminates Plusvalia Tax on property

Please note the information provided in this blog post is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. VOV.

2.021 © Raymundo Larraín Nesbitt. All Rights Reserved.

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Happy Halloween!

Raymundo Larraín Nesbitt, October, 31. 2021

Anál nathrach, orth' bháis's bethad, do chél dénmha

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Reuters: Spanish property is booming

Raymundo Larraín Nesbitt, October, 21. 2021

Reuters news agency reports in an article below how Spanish property is booming:

 

"Spanish real estate not just recovering but booming, data shows

MADRID, June 8 (Reuters) - Spanish house sales in April surpassed 2019 levels, official data showed on Tuesday, a sign the property market is not just recovering from last year’s slump but is hotter than before COVID-19 struck.

Data from Spain’s College of Registrars, who underwrite real estate transactions, showed that April’s house sales were 3.1% higher than in 2019, and 91% higher than in the same period last year, a near-doubling of activity from Spain’s first full month under lockdown.

The number of mortgages taken out on homes shot up by 31.5% over the year as buyers sought to change homes or refinance to make the most of unusually low interest rates. Compared with April 2019, residential mortgages were up 8.8%, the data showed.

Spain has sought to reopen itself to both business and travel in recent weeks, emboldened by its accelerating vaccination campaign and ebbing coronavirus infections, with policies allowing pent-up investor demand to find an outlet.

Overall real estate transactions - rather than just residential sales - grew 9.3% compared to April 2019, the registrar data showed.

Intensifying economic activity and high demand for bigger, brighter and greener homes appears to have pushed prices up too, with property surveyors Tinsa reporting a 1.3% rise in house prices in May year-on-year.

Spain’s islands and Mediterranean coast experienced the sharpest price rises, Tinsa said. (Reporting by Clara-Laeila Laudette; Editing by Nathan Allen and David Gregorio)"

Source: Reuters

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Andalusia slashes inheritance tax for relatives in third degree (Group III: brothers, nephews, uncles, etc)

Raymundo Larraín Nesbitt, October, 11. 2021

Marbella-based Larraín Nesbitt Abogados (LNA) has over 18 years' taxation & conveyancing experience at your service. We offer a wide range of over 50 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record of successfully assisting expats all over Spain.

You can review here our client’s testimonials.

Article copyrighted © 2021. Plagiarism will be criminally prosecuted.

 

By Raymundo Larraín Nesbitt
Lawyer - Abogado
11th of October 2021

Following on the trend to lower taxes, Andalusia’s regional government announced last week that it would be drastically reducing IHT for relatives in third degree:

Group III: Relatives in second and third degree: in-laws, brothers/sisters (siblings), nephews/nieces, aunts, and uncles.

As we’ve reported several times, relatives in first and second degree do not pay inheritance tax for estates under 1mn euros. Over and above 1mn eruos, they have a tax allowance of 99% in Andalusia. In other words, almost no one pays inheritance tax within these two family groups:

Group I: Natural and adopted children under 21.
Group II: Natural and adopted children over 21, spouse, registered civil partnerships, parents, adoptive parents, grandparents and great-grandparents.

The new change we report on today translates into these allowances being broadened to include (for the first time) the third group of relatives. For family members in Group III, the top marginal rate in IHT is reduced from 70% down to only 45% (in the most extreme cases, when millions are inherited).

Despite drastically reducing inheritance tax in Andalusia, the regional government has earned an extra 600mn euros in taxes. This is known as the Laffer Curve which we’ve explained in detail in previous articles. Basically, it means that when you lower taxes, paradoxically, the tax revenue increases (at least until a marginal point is reached) because more taxpayers comply. As Andalusia came from a point of high taxes, the Laffer Curve effect is quite noticeable in the public coffers. This positive effect (increase of taxe revenue despite lowering tax rates) is also taking place in the autonomous region of Madrid, which also keeps lowering its taxes relentlessly.

This new change for family members in a third degree will come into effect as from January 2022.

Following this welcome tax change, Andalusia will have as from 2022 the most tax-efficient inheritance tax laws out of all the autonomous communities in Spain. This, once more, proves the unwavering commitment of our regional government to lower taxes where possible and reduce admin red tape.

These are the sort of tax measures that I keep pointing out help to attract foreign investments and foster a dynamic economy that creates jobs. Kudos to our politicians.

 

At Larrain Nesbitt Abogados we can assist you buying & selling property in Spain and deal with its taxation. Ask us.

Larraín Nesbitt Lawyers, small on fees, big on service.

Larraín Nesbitt Lawyers is a law firm specialized in conveyance, taxation, inheritance, residency and litigation. We will be very pleased to discuss your matter with you. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on (+34) 952 19 22 88 or by completing our contact form to book an appointment.

 

Inheritance-related tax articles

 

Please note the information provided in this blog post is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. VOV.

2.021 © Raymundo Larraín Nesbitt. All rights reserved.

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Reminder - Q3 2021 Non-Resident Income Tax filing

Raymundo Larraín Nesbitt, October, 1. 2021

Marbella-based Larraín Nesbitt Lawyers has over 18 years' taxation & conveyancing experience at your service. We offer a wide range of over 50 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record successfully assisting expats all over Spain. You can review here our client’s testimonials.

Copyrighted © 2021. Plagiarism will be criminally prosecuted.

 

Just a gentle reminder to all non-residents, who own property in Spain and rent it out (whether long or short-term i.e. holiday home); you must file your Q3 2021 quarterly tax return now in October. You are being taxed on your rental income for the previous three months: July, August, and September.

For 2021, the non-resident tax calendar is as follows:

  • Q1 January – March. Filed on the first 15 days of April
  • Q2 April – June. Filed on the first 15 days of July
  • Q3 July – September. Filed on the first 15 days of October
  • Q4 October – December. Filed on the first 15 days of January 2022

 

Our cut-off date to accept filing Q3 2021 non-resident tax returns is Friday the 15th of October 2021.

Please do not wait until the last moment to submit your quarterly tax return. We file this tax online all over Spain within 24 working hours.

We can offer you this tax service for a very competitive fee: 125 euros plus 21% VAT.

The quoted fee is per property and per tax quarter, it includes up to two joint owners i.e. husband & wife.

Our fees are 100% tax-deductible from the tax to pay.

The main highlight of our tax service is that we reduce your income tax by 70%, or more, on applying for lenient landlord tax relief on all your property-related expenses.

Contact us and pay less tax. If you overpay taxes in Spain, it is only because you want to.

 

Q3 2021 tax submission period

From the 1st to the 20th of October.

Related tax service

Holiday Rental Accounting Service (HRAS)

Related taxation articles

 

Please note the information provided in this blog post is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. VOV.

2.021 © Raymundo Larraín Nesbitt. All rights reserved.

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Spain records highest number of property sales since 2008

Raymundo Larraín Nesbitt, September, 1. 2021

Marbella-based Larraín Nesbitt Abogados (LNA) has over 18 years' taxation & conveyancing experience at your service. We offer a wide range of 50 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record of successfully assisting expats all over Spain.

You can review here our client’s testimonials.

Article copyrighted © 2021. Plagiarism will be criminally prosecuted.

 

By Raymundo Larraín Nesbitt
Lawyer - abogado
1st of September 2021

As Spain’s leading property portal IDEALISTA reports in its article of August 2021, property sales over the last six months are at levels unseen since 2008. Spain’s National Bureau of Statistics (INE) reports 267,700 properties sold during the first 6 months of this year. We need to look back 13 years, all the way back to Spain’s property boom heyday, to see such healthy sale figures.

You can see the graphics here: House sales in Spain in 2021 (first six months of 2021)

In June alone, over 48,000 properties were sold, which is an 73.5% interannual increase. This is hands down the best performing June in real estate history. This confirms the unabated trend that we are witnessing the best sale figures in over 13 years. The property market has been nothing short of spectacular from March of this year.

There are several underlying factors that help to explain this spectacular property rebound which we’ve been collating in several articles:

 

The main one - at least in the region of Andalusia - has been a drastic reduction in taxes on buying property; both offplan and resale which we also reported at the time:

 

On offplan property, this change translates into tax savings of 20% in Stamp Duty.

On resale property, the reduction follows a sliding scale depending on the sale price. Starting at a 12.5% reduction on lower-end property and rising to over 30% for high-end villas. Meaning, the higher the sale price, the more taxes a buyer stands to save! This factor, all by itself, greatly explains the surge in villas sales we have been reporting over the last six months.

The ongoing global pandemic, which has modified consumer behaviour making buyers seek villas with spacious gardens in prime locations, coupled with a drastic tax slash has fostered a property boom that has been going strong since March 2021.

At last, we have Spain’s INE's hard data which serves as official confirmation to back up what we had been reporting over the last six months anecdotally.

 

At LNA we can assist you buying, selling or renting out your property in Spain. We have 18 years’ experience in conveyance & tax. We are also specialized in Immigration & Residency permits.

Larraín Nesbitt Abogados, small on fees, big on service.

Larraín Nesbitt Lawyers is a law firm specialized in taxation, inheritance, conveyancing, residency, and litigation. We will be very pleased to discuss your matter with you. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on (+34) 952 19 22 88, or by completing our contact form to book an appointment.

Related services:

 

 Please note the information provided in this blog post is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. VOV.

2021 © Raymundo Larraín Nesbitt. All Rights Reserved.

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