The reduction of inheritance and gift tax (IGT) in Andalucian region :
It is now cheap to invest and live in Marbella
The new personal income tax (PIT), inheritance and gift tax (IGT), and transfer tax means Marbella is now an ideal destination for those looking for property to buy or rent. Personal income tax (PIT) at a maximum marginal rate of 22.5% leaves expatriates looking to move to Marabella for work with much income to enjoy Marabella’s perfect coastal climate and experience multicultural environment represented the presence of people from all over the world. The dream to move to Marbella has been sweetened by reduction of inheritance and gift tax (IGT) in Andalucian region. Children and spouses will now pay zero tax for bequeathed property valued at less than € 1,000,000 while property worth € 1,000,000 will be assessed at a tax rate of 1%.
Why the excitement about reduction of inheritance and gift tax (IGT)?
This means Marbella has become a favorite retirement destination and a tax heaven for estate planners who want to ensure families do not pay inheritance tax for property inherited or received as a gift.
The Andalusian government tax adjustment helps Andalusia region take the second position after Madrid as the region with lowest tax burden among the Spain’s 17 regions. The tax adjustment is aimed creating employment and reducing cost of living therefore encouraging more Europeans to move to the region. The tax adjustment implemented by Andalusian government has made it cheaper and financially sustainable to leave in Marbella. This is the best time to acquire a second home in Marbella when property prices are still stable before the prices starts rising as they respond to the increasing property demand in Marbella. High end Luxury properties in Marbella which are defined as property in excess price of € 1,000,000 attracts most Europeans and have become a booster of Marbella property market for years, this is expected to continue as more people move into the area.
Marbella is an exclusive destination in Europe and is famed as the southern California of Europe because of the mildest winter in Europe and jet experience it offers to the residence. Marbella continues to be one of the favorite destinations in Europe and an exclusive place to live as evidenced by awarding the city the converted award of European Best destination in 2022 being the most prestigious and exclusive destination in Europe. Marbella also scope the overall best destination in Europe beating some famous destination such as Monte Carlo, Gstaad, Capri and Madeira. What makes Marbella even more attractive and affordable it is the fact that Andalusia government has abolished the wealth tax with intention of making property market cheaper in the region and affordable.
Marbella is one of the most beautiful regions in Spain, it now more affordable to most people and provide tax advantages for real estate planning. Should you be interested in buying, selling or renting a property in Marabella we will be happy to assist you navigate Marbella property market. All you have to do is to reach out to us!
By Wangoi Ma