Last 9 April the Andalusian Government approved Decree-Law 1/2019, laying down provisions issued by the Autonomous Community of Andalusia they are modified in terms of taxes transferred. These changes represent a significant tax cut in Andalusia and in force since 11 April 2019.
The tax relief in Andalusia, It affects three taxes. income tax, Transfer Tax and stamp duty and inheritance tax.
Below you can find the changes.
Income Tax for Individuals
It regulates a progressive reduction in the tax rate of personal income tax reducing regional scale. The reduction in the exercise begins 2019 and continues gradually to exercise 2023.
The lower section will be reduced by 0,5% in two years. Meanwhile, the highest bracket will be reduced by 3% over four years.
It helps large families. This tax, It applies the reduced tax rate of 3,5% the acquisition of housing for certain groups. Among them are included taxpayers that are part of a large family. For it, the property should go to his family residence and its value should not exceed 180,000 €. Previously this group paid the 8%.
It helps large families. En relación al reduced tax rate of 0,1% applicable to the notarial deeds documenting the acquisition of housing for certain groups, it includes taxpayers that are part of a large family, provided that the property is intended for residence of his family and the actual value thereof does not exceed € 180,000. Previously this group paid the 1,5%.
Helps businesses and freelancers. Se deroga el tipo incrementado del 2 by 100 in notarial deeds to formalize real estate transfers that occurred in the renunciation of tax exemption on value added and therefore taxable investment. So, these scriptures will apply the General type 1,5%.
Almost left this tax for spouses and direct relatives without recaudatorios effects (Grupos de parentesco I y II: spouses, direct ascendants and descendants, including grandchildren). Para ello se introduce una bonificación del 99% for acquisitions "mortis causa" as follows:
- reduction remains 1 million euros, provided that the existing assets of the heir is also less than 1 million euros.
- It approves a bonus 99% share for the rest of assumptions for direct relatives.
It introduces a bonus 99% between direct relatives (Groups I and II: spouses, direct ascendants and descendants, including grandchildren) acquisitions "inter vivos" and for any type of property.
- Donation must be formalized in a public document.
- When the object of the donation is cash or deposit accounts, the bonus will be applicable only when the source of funds is duly justified. In addition, se deberá manifestar en el propio documento público en que se formalice la transmisión el origen de dichos fondos.
Regarding the donation of property, we want to make a wakeup call about how important it is to assess the potential fiscal costs that can be generated for the purposes of income tax and Municipal Capital Gains.
We hope the information has been of interest. For any clarification on this important tax cuts in Andalusia we remain at your disposal. 950 243433.