Tax
We talk a lot about what you pay, but there's an equally important flip side: what you don't need to pay. There are exemptions, reliefs and reduced rates spread across different taxes; using them well can mean notable savings. Here are the main ones, bearing in mind that each has conditions and almost all must be claimed in time.
When buying. In Andalusia, ITP has reduced rates in certain cases (for example, for young buyers within certain value limits, large families, people with disabilities or protected housing). Checking whether you qualify before signing is money straight in your pocket.
While owning. Wealth Tax is 100% relieved in Andalusia, with the caveat of the state solidarity tax above €3 million. In Inheritance and Gift Tax, Andalusia applies very high reliefs for close relatives, plus a specific reduction for the habitual residence.
When selling. The relief for reinvestment in a habitual residence lets you avoid tax on the gain if you reinvest in another habitual home; for EU/EEA residents, also if the home is within that area. Those over 65 may be exempt from the gain on the sale of their habitual residence. And remember: on the municipal plusvalía, if there is no increase in the land's value, nothing is due.
Legal analysis. The saving is not in one place but spread across regional taxes (ITP, Inheritance, Wealth) and state taxes (IRPF, IRNR). Reinvestment in a habitual residence is governed by the Personal Income Tax Act and was extended to EU/EEA residents; Inheritance reliefs and reduced ITP rates are Andalusian and change with each regional reform. The key is the usual one: these advantages generally require meeting conditions and exercising the option in time, so they are planned before acting, not after. Good prior advice pays for itself.
Want to know which exemptions and reliefs you're entitled to? We'll map out the savings for your specific case.
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