Two articles of Legislative Decree 7/2021, approved on 27 April 2021, provide for a reduction of the multi-level (8%, 9% and 10%) transfer tax to a uniform rate of 7%. and the tax on legal acts will be reduced from 1.5% to 1.2% in both cases by 31 December 2021.
The property transfer tax (ITP) is the one that is levied on the purchase of real estate in the second purchase or re-sale (in the first purchase the Value Added Tax is maintained at 10%, although with the reduction of 1.2% of the tax of documented legal acts, as explained in the next paragraph).
The documented legal acts tax (AJD) is the tax levied on the set of notarial, commercial and administrative documents, the granting of which constitutes part of the taxable event of the property transfer tax.
This tax affects the purchase of a new home, in which 1.2% of the purchase value must be paid (without adding VAT), the declaration of new construction for expansion of the built area, surplus capacity, or segregation of land, among others.