Breaking News: 50% Reduction In Property Taxes Provides Boost For New Build Spanish Property
The Spanish Government has finally acted with decisive action to boost the new build sector of the Spanish property market by slashing IVA (VAT) from 8% to 4% thus saving a property purchaser a sizeable €8,000 on a €200,000 purchase.
News of the 50% reduction in VAT applicable until 31st December 2011, was greeted with an ecstatic reaction from real estate professionals especially those on Costa del Sol, a popular area for new build homes.
Nick Stuart, Managing Director of Spanish Hot Properties, located in Benahavis on the Costa del Sol, couldn’t hold back his excitement and claimed that this action would stop some agents going out of business,
“It has been fairly clear to us that some agents this summer have been very much on the edge and this news will certainly help them ride the storm out. A reduction in VAT will hopefully spark some movement in the market as new build properties become more affordable.”
According to Jose Blanco, Minister of Development, the measure aims to “revive the construction sector” and “contribute to creating employment in the sector most affected” by the recession. Surely welcome news for many Spaniards.
For more information on this significant change in IVA rates and to find the perfect new build home in Spain contact Spanish Hot Properties today on +44 (0) 207 558 8355 or visit www.spanishhotproperties.com.