Modification of the rate taxation on the capital – Transfer tax and on the documented legal acts tax.The Junta de Andalucía has approved the General Budget Law which includes an increase of the rate of taxation on the Onerous Capital-Transfer Tax and on Documented Legal Acts (I.T.P & A.J.D), which affects to the Tax paid by a purchaser of a real estate property from a non promoter seller.

MODIFICATION OF THE RATE OF TAXATION ON THE CAPITAL-TRANSFER TAX AND ON THE DOCUMENTED LEGAL ACTS TAX.

1.- On the first January 2012 came into effect the Act 18/2011, of December 23rd, constituting the Budget Act of Andalusia for 2012. It was published on the Boletín Oficial de la Junta de Andalucía [Official Gazette of Andalusia] on the 31st December 2011, and on the Boletín Oficial del Estado [Official Gazette of the Spanish State] on the 20th January 2012 last.

2.- The Final Provision Eighth of said regulation amends the Legislative Decree 1/2009 fixing the rate of taxation on the Onerous Capital-Transfer Tax and on Documented Legal Acts (ITP & AJD), in its Onerous Capital-Transfer (TPO) modality.
2.1.- This way, the tax rate on the TPO in the real estate transfers (not being the promoter’s first sale, as in this case they are subject to the payment of VAT at the rate of 4% for 2012), and the constitution and assignment of the real rights falling upon same (except for the real rights of guarantee) the tax rate will be the following:- Up to 400.000 €, the tax rate will of 8%, in lieu of 7%.- The excess over 400.000 € will be taxed at 9%, in lieu of 8%.- A new tax bracket is created for the amounts exceeding 700.000 €, which will be taxed at 10%.
2.2.- The reduced tax rate of 3,5% is kept for the transfer of immovable property the real value thereof does not exceed from 130.000 Euro when the same is destined to the purchaser’s usual dwelling and is less than 35 years old.
2.3.- In the case of a transfer where the purchaser is classified as a disabled person and the purchased dwelling is destined to be the usual one, the maximum amount of the real value in order to claim the reduced rate benefit is increased from 130.000 to 180.000 €.
2.4.- It is increased the TPO tax rate on the transfer of parking spaces (except those annexed to dwellings) or the constitution of real rights on same (except the mortgage one), the taxation thereof being as follows:- Up to the value of 30.000 €, they are taxed at 8%, in lieu of 7%.- For the excess over 30.000 €, they are taxed at 9%, in lieu of 8%.- A new tax bracket is created for the amounts exceeding of 50.000 €, which will be taxed at 10%.
3.- On the other hand, it is increased the ITP and AJD taxation on the Documented Legal Acts modality (AJD) applied to the purchase of a new dwelling (in addition to VAT) and to the placement of a mortgage. In this case, the rate is increased from 1% to 1.2%.

As in the TPO, whenever the purchaser of the immovable property is less than 35 years old or classified as a disabled person who are purchasing their usual dwelling and the real value of same is less than 130.000 Euro, the reduced rate of 0,3% is kept in lieu of the said 1,2%. Said rate is applied when a mortgage is placed to ensure the repayment of a loan guaranteeing the purchase of the usual dwelling by persons less than 35 years old or disabled ones, provided always that the aggregate of the loan principal and the dwelling real value does not exceed from the said 130.000 €.

4.- On its part, Final Provision Seventh of the abovesaid Budget Act of Andalusia amends Act 23/2007, adding an article 22 quarter, increasing thereby the rate to be applied for the computation of the total tax liability of the Inheritance and Gift Tax, only for the last two brackets of the scale.

Thus, after this modification, the net tax bases comprised between 398.777,54 Euro and 797.555,08 Euro shall be taxed at 31,75% instead of at 29,75%, the rate thereto they were subject until the present modification. On their part, the net tax bases exceeding the amount of 797.555,08 Euro are now taxed at 36,50% instead of at 34%.

Marbella, 23rd January 2012.

José Castellano Fernández.
Perez de Vargas Abogados.