Catalonia, one of the autonomous communities in Spain, implemented an increase in the property transfer tax from 8% to 10% as of August 1, 2013. The move was made in hopes of generating an additional revenue of 150 million euros.
The property transfer tax, also known as the Grunderwerbsteuer, is a tax paid by the buyer of a property upon its transfer of ownership. The increase in Catalonia’s property transfer tax means that buyers of properties in the region will now have to pay a higher tax rate on their purchases.
This increase in the property transfer tax is expected to affect both individuals and businesses looking to invest in real estate in Catalonia. The move is part of the region’s efforts to address its budget deficit and generate additional revenue for public services.
While the increase in the property transfer tax may be seen as a burden for property buyers in Catalonia, the regional government hopes that the additional revenue generated from the tax increase will help fund public services and contribute to the region’s economic growth.