On top of Andalucía’s regional governments decision to increase purchase taxes by 1% they have also raised AJD (mortgage deed tax) this has been increased from 1% of total mortgage responsibility to 1.2%.
For most borrowers this means mortgage deed tax will rise from an average of 1.8% of loan amount to 2%, in the South of Spain.
How the Regional Government members sat down and thought these two disincentives for buyers would actually help increase their coffers and re-juvinate tourism and house sales is somewhat bemusing. After many years of a socialist regional government clearly the party members have run out of ideas.
Perhaps in March if the conservatives win they will see the lunacy in this decision and come back into line with the rest of Spain.
International Mortgage Solutions