The pandemic, in terms of the residential market, caused the number of housing transactions to decline. Thus, and during 2020, this number was 478,089. This is 14.5% less than in the same period of 2019, when that number reached 569,993.
Of the total transactions, residents in Spain carried out 455,629. Another significant piece of information is that two thirds of them took place in four autonomous communities: Andalusia (19%), Catalonia (15.6%), Madrid (14.6%) and the Valencian Community (12.8%). The rest of the communities are below 5.3%. These are some data from the report ‘Winners & losers: fiscal balance between Autonomous Communities for home purchases’ prepared by Colliers.
Said report also highlights that Madrid are the ones who spend the most direct taxes (Tax on Onerous Patrimonial Transmissions, Documented Legal Acts and VAT) to regional economies through said operations. In this way, and according to Jorge Laguna, director of Colliers, they contribute “to the economic support of regions such as the Valencian Community or Andalusia, star destinations of the second national residence”.
Specific, Madrid residents contributed more than 300 million euros to other regional coffers. The Valencian Community was the great beneficiary, with 68 million. They were followed by Andalusia (66 million), Castilla-La Mancha (39 million) and Catalonia (34 million).
“The Community of Madrid is, by far, the one that contributes the most with its taxes to the rest of the communities. It presents a net balance of 242.5 million euros ”, highlights the Colliers report. Because Madrid entered taxes from other buyers residing in other communities amounting to almost 57.5 million euros. Returning to the case of the Valencian Community, the people of Madrid left the aforementioned 68 million there. The Valencians, for their part, did the same in Madrid… but their amount was only three million euros.
Madrid is not the one that collects the most
Such is the magnitude of the importance of the Community of Madrid when it comes to ‘watering with millions’ to other autonomies in relation to the residential market, that the second in the ranking had a contribution of 50 million euros. It is about Catalonia. Its inhabitants opted, in their case, for the Balearic Islands, Andalusia and the Valencian Community, in this order.
Where Catalonia does reach the highest drawer of the podium is in relation to being the community that collects the most: 1,565 million euros. And that despite being the second community with the highest number of transactions, after Andalusia.
The reason is that it is one of the communities with the highest tax rate. What’s more, average purchase tickets are well above those of Andalusia. After Catalonia, it is the Community of Madrid that collects the most: 1,386 million euros. In your case, it happens that you have one of the lowest tax rates. But it is the third in terms of number of transactions, and its tax base (average ticket) is one of the highest.
After Catalonia and Madrid, the hypothetical bronze medal goes to Andalusia. The collection, in his case, was 1,106 million euros. Among the characteristics that define it, it is proud to be the one that carried out the greatest number of transactions. It also has one of the highest tax rates in Spain. But its average ticket is lower than that of Madrid and Catalonia. This is the reason that its collection is lower than both.
The communities that receive the most taxes for the purchase of homes from buyers residing in other autonomous regions are the Valencian Community and Andalusia: 98.6 million and 84.8 million, respectively. In both cases, money from mostly Madrid residents.
The purchase by residents from other communities is very low in Madrid and Catalonia, although they are in high demand. It stays below 4%. However, the opposite is true in Cantabria (31.5%), La Rioja (20.7%), Castilla-La Mancha (23.9%), Castilla y León (19.2%) or the Valencian Community (14 , 8%).
Returning to Madrid, one in four purchases were made outside the community. Their preferences were the Valencian Community and Andalusia (20% in both cases), Castilla-La Mancha (17%), Castilla y León (11%) and Catalonia (7%).
With regard to citizens of other regions, the Basques concentrate most of their purchases outside their community in Cantabria (24%) and Castilla y León (20%). In the case of Riojans, they opt for Andalusia (32%), Valencian Community (14%) and Murcia (9%). While the Castilian-Manchegos choose Madrid (31%) and Andalusia (14%). On the other side of the balance, Andalusians, Catalans, Valencians, Galicians and Canaries hardly buy homes in other communities.
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