Since January 1, 2014 purchase of housing in the secondary market of Madrid cost many cheaper because some taxes were reduced .
So regional government lowered property transfer tax (ITP) from 7% to 6%, and tax preparation of legal acts (AJD) – from 1% to 0.75%. Therefore , taxes on real estate secondary market in Madrid has become one of the lowest in the country.
Thanks to these changes , when buying real price range of 200 thousand euros , buyer can save 2,500 euros . Just worth considering that the tax is calculated on the appraised value of the property , which is set by autonomous authorities , rather than the actual price for which the facility was sold .
” By reducing the ATP and AJD authorities expect to resume activity not only in the real estate sector , but also in other sectors of the economy ” – said Jose Maria Rotelyar , Vice Minister of Finance of the Autonomous Community of Madrid. ” The real estate sector is obliged to make an enormous contribution to the economic recovery , and taxation is one of the most significant factors in this market – it can become one of the most decisive in the decision to invest in real estate ,” – adds Rotelyar .
Regional authorities also noted that the reduction in ITP will cost the state treasury of 76 million euros , and the decrease AJD – 50 million, however , the capital tax policy in the field of housing, does not coincide with the trends at the national level – in other autonomous regions such as Catalonia , ITP grew by 10% and on par with VAT . It is also worth noting that the share of tax accounting for up to 22 % of the final value of real estate in Spain. If we consider indirect taxes , the figure will be more than 30% .