General changes in tax laws Spain - Spanish Real Estate

Below an article about general changes in tax laws Spain, and at the bottom of the article you will find tax laws and tax rates specifically related to Andalucia as this is the area of greatest interest to international and Swedish investors.

So what are the new benefits of living in Andalusia now?

Maximum income tax of 26% for investment income. Tax rates are between 19% and 23% unless investment gains exceed €200,000.
Extended deductions for rental income . Income is calculated after deducting all related costs, including interest costs on loans.
Almost no inheritance tax and gift tax for close family members.
People who permanently move to Spain from other countries can completely eliminate inheritance tax and gift tax.
Private pensions are now treated as investment income, with the taxable amount calculated based on the difference between the amount invested and the income withdrawn. Here, taxes can be as low as 2.5%.
A full range of international tax treaties that ensure that double taxation almost never occurs.
No wealth tax!

General changes in tax laws Spain 2023

The general corporate tax rate is 25%, but special rates may apply in some cases (eg banks are subject to a 30% rate, start-ups may in some cases be subject to a 15% rate, etc.) .
A new alternative minimum tax applies to taxpayers who had a net turnover in the previous year of at least EUR 20 million or who are part of a consolidated tax group.
A new high net worth tax will apply in 2023 and 2024 and will consist of three bands: between €3 and €5 million in net worth, 1.7%; between 5 and 10 million euros, 2.1%; and over EUR 10 million, 3.5%.
Capital income and capital gains will be taxed more in income tax from €200,000 by one point, to 27%, and for capital gains above €300,000 it will rise to 28%, two points more.
The limit for exemption from income tax has been extended and a tax reduction for small and medium-sized enterprises has been approved.
The regional deduction for investments in first homes has been increased to five percent both for young people and for owners of officially protected homes.
Rent reductions have been improved for various groups, including people with disabilities, the over 65s and victims of domestic violence or terrorism.
Deductions of up to €200 can be made for births and adoptions.
Two new exemptions have been created – one to offset educational costs with a limit of €150 per student and another for donations that have an environmental purpose.

New tax laws and tax rates specific to Andalusia

The tax changes below can result in significant savings for overseas buyers, particularly for higher value properties.

In addition to these tax cuts, Andalusia also offers lower income tax, wealth tax and inheritance and gift tax than most other regions of Spain.
The income tax rate will be reduced to the lowest level of 9.5 percent, the minimum required by Spanish law.
As previously mentioned, the wealth tax (Impuesto Sobre el Patrimonio (IP)) is abolished completely.
The tax rates for inheritance and gifts have been reduced to between 7 and 26 percent . According to the Andalusian government's calculations, this means that the marginal tax rate will not exceed 45 percent. Until now, it could amount to 70 percent.
Property transfer or transfer tax will remain at the current low level of 7%, while notarial deeds will continue to be taxed at the current level of 1.2%.
Property Transaction Tax (PTT) has been reduced from a scale of 8% to 10% to a flat rate of 7% on all sale prices. This only applies to resale properties.
Stamp Duty (AJD) has been reduced from 1.5% to 1.2% for all sale prices. This only applies to newly built properties. These tax cuts only applied until December 31, 2022, but have been extended indefinitely.

Note . Be aware that these laws and regulations are constantly changing. It is important to consult an authorized tax advisor or expert who is familiar with both Spanish and Swedish tax laws to ensure full compliance and optimize your tax situation.

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Sources:

Spain: Tax measures in 2023 budget law – KPMG United States
Spain tax changes 2022-2023: less income tax for low earners and new taxes for the rich — idealista
Understanding the New Tax Laws in Andalusia in 2022 |
Right Casa Estates The new tax laws in Spain's Andalusia in 2022: What you need to know – The Local
The new tax laws in Spain's Andalusia in 2022: What you need to know |
The Local Spain Highlights 2022 - Deloitte

Wealth tax scrapped in Andalucía – Mpdunne