23/04/2014 – Expansion
Madrid´s Economy and Finance director Enrique Ossorio assured yesterday that economic and fiscal policy in the Community “boosts real estate activity thanks to the measures approved by the regional Government which are directly related to town planning and are aimed at reducing the taxes on construction sector that currently represent 6.6% of GVA”.
Moreover, the Community cuts in stamp duty payment down to 25%. Therefore, in case of a house that costs 180.000 Euros the tax rate will be of 0.75, the same as the rate applied to unspecified notarial documents. Likewise, from this year on, general rate of Property Transfer Tax will be reduced from 7% to 6% on pre-owned houses.
Ossorio also reminded that since 2003 the Community of Madrid offers a 20% tax abatement on the Personal Income Tax for house rental available for people who are below 35, with a €840 annual limit. What is more, since 2009 the regional Government subsidizes 100% amendments of loan and credit agreements for the principal house purchase in case of alternations deriving from changes in amortization system.
Madrid retains reduced rates for home acqusition by numerous families set at 4% and the real estate firms buying to re-sell within 3 years may still enjoy a 2% rate. Also, the lowered rates for notarial documents concerning house purchase and loans with property as collateral are to stay.
Original article: Expansión
Translation: AURA REE